China Offers 10,800 Yuan Baby Bonus to Boost Birth Rate
China has launched a national cash incentive scheme offering families 10,800 yuan (approx. $1,500) per child under the age of three, in an effort to reverse the country’s declining birth rate. The bonus will be paid as 3,600 yuan annually over three years for each eligible child.
Nationwide Scheme Targets 20 Million Families
The scheme, funded by the central government, is expected to benefit more than 20 million families. Children born between 2022 and 2024 are also eligible for partial payments. This move comes as the government shifts away from decades of restrictive population control policies and tries to encourage childbirth.
Local Governments Provide Extra Incentives
Several regional governments have supplemented the national scheme with their own subsidies. Hangzhou and Changsha offer up to 10,000 yuan annually per child, while Inner Mongolia has introduced even larger incentives for third-born children.
Youth Remain Skeptical About Cash Offers
Despite the financial support, many young adults remain hesitant. Known as the “lie-flat” generation, they cite reasons such as rising living costs, demanding work environments, and lack of work-life balance as major factors discouraging them from starting families. Many believe that money alone won’t change their minds.
Experts Say Reforms Must Go Beyond Cash
Experts have warned that cash incentives alone may not significantly boost birth rates. They suggest broader reforms such as better childcare infrastructure, parental leave policies, affordable housing, and workplace gender equality to make a real impact.
China’s Birth Rate Hits Historic Lows
China’s population has declined for three consecutive years, with the birth rate in 2024 hitting its lowest level since the 1940s. Demographers predict that without structural reforms, the population could halve by the end of the century, posing a long-term threat to economic stability.
