China is experiencing a population crisis unlike any in its modern history. For decades, the country enforced strict population control policies, including the one-child rule that lasted from 1980 to 2016. Now, as the effects of those policies take hold, China is facing the opposite problem: not enough births to support its future. To deal with this growing threat, the Chinese government is offering citizens large sums of money and other benefits to have more children. From monthly payments to housing discounts and even free milk, the incentives are growing rapidly. The question is whether these strategies will be enough to change the course of China’s future.
China’s one child policy, a socialist monstrosity, killed the part of the culture that wanted bigger families, and skewed the demographics of China to be older on average. They are now regretting this brutal time in their history.
A Shrinking Nation
China’s population has been shrinking for three years in a row. The decline is mainly caused by a sharp drop in birth rates. According to the United Nations, if current trends continue, the country’s population could fall from over 1.4 billion to less than 800 million by the year 2100. That would represent one of the most dramatic demographic declines in human history.
The shrinking population is already creating problems. A smaller workforce means fewer people paying taxes, while an older population means more people relying on health care and pensions. This creates a financial imbalance that threatens to slow down the entire economy. According to China’s government statistics, the population aged 60 and older reached 310 million in 2024. If fewer young people are born, there will not be enough workers to support the elderly.
At the same time, fewer women are choosing to marry or have children. Many cite the high costs of housing, education, and child care, along with stressful jobs and the desire to have more freedom in their personal lives. Some women also want to avoid the kind of government control they witnessed during the one-child policy era, when officials forced abortions and sterilizations on millions of people. As one young mother in Tianmen told reporters, “I chose to have a second child because I grew up in a house with two kids and thought it was great… Those who want to have children will not care about the subsidies and will naturally have children anyway.”
Subsidies and Cash Payments
To fight these growing challenges, the Chinese government is now turning to money as a solution. Across the country, cities and provinces are offering large financial rewards to encourage childbirth. One of the most extreme examples is found in Tianmen, a city in central China with a population of around 1 million. In 2024, Tianmen’s birth rate rose by 17 percent, the first increase in eight years. This success has drawn national attention.
State-run media praised Tianmen’s “fertility secret,” which includes a wide range of financial supports. Couples who have a second or third child can qualify for large subsidies. One parent, Xie Fei, who gave birth to her third child in 2024, received a $25,000 housing coupon that helped her cover over a third of the cost of an apartment. She is also set to receive about $5,600 in direct payments before her son turns three. “Tianmen’s policy is great,” she said. “It has solved my housing problem because I have many children.”
According to city officials, the support begins with prenatal care and extends all the way through early childhood. Families may receive a one-time payout of about $275 for a second child and $314 for a third. After birth, parents get monthly payments of $110 or $137 until the child reaches the age of three. Families with three children can claim housing coupons worth up to $16,500, which is a large sum in Tianmen where income levels are relatively low.
The city even created “encouraging childbirth” bank cards that hold all the financial rewards. One mother received 8,100 yuan upon leaving the hospital, and her third child now qualifies for 1,000 yuan per month in subsidies. In total, her support package reached 225,100 yuan, or more than $31,000.
Expanding the Effort Nationwide
Tianmen is not the only city offering major incentives. In Hohhot, the capital of Inner Mongolia, the local government announced a policy in 2025 offering up to 100,000 yuan (around $13,800) for each third child. The subsidy is spread over ten years, with 10,000 yuan paid annually. Families who have only one or two children also qualify for smaller payments. “The tiered, annual distribution of childcare subsidies could ease short-term fiscal pressure while optimizing fund use,” explained Yang Zhong, deputy director of the Hohhot Municipal Health Commission.
Hohhot also introduced additional benefits such as free prenatal exams, health screenings for newborns, and daily milk for new mothers for a full year. Yang said the program is meant to “reduce family financial burdens, ease childbirth concerns, and boost industries like maternal products and education.”
Hangzhou, Shenyang, and parts of Gansu province have also created similar programs. Some offer direct cash for each child born, while others include extended maternity leave, housing incentives, and improved access to child care. In total, more than 20 provincial regions in China are now experimenting with these types of payments and services.
A Short-Term Gain or a Long-Term Fix?
While these programs are generous, many experts are skeptical about whether they can truly reverse the population decline. In Tianmen, for example, officials admitted that many families who received benefits were already planning to have more children. Some only returned to Tianmen temporarily from larger cities to take advantage of local benefits. A woman named Dong, who gave birth to her second child, said she only learned about the subsidies after becoming pregnant.
According to Shuang Chen, a professor at the London School of Economics, “You’re simply encouraging the same group of people who were going to have children anyway to have them now. That’s why these effects are very temporary.”
There is also concern about whether these programs can be sustained. Tianmen was already $1.9 billion in debt by 2023, raising questions about how long it can afford to hand out such large subsidies. Wealthier cities like Shanghai may be too expensive for the average family, while poorer cities might not have the budget to offer similar incentives. “In places such as Shanghai,” said demography expert Xiujian Peng, “the labor market is very competitive for the younger generation, so these financial incentives won’t easily change their minds.”
A National Priority
Despite the challenges, China’s leaders are doubling down. During the government’s main political meetings in March 2025, boosting birth rates was listed as a top goal. The government work report promised to “provide childcare subsidies” and “vigorously develop integrated nursery and childcare services.” Officials are also planning to expand free preschool, improve pediatric health care, and create more community-based child care options.
Some Chinese citizens are hopeful. One netizen commented online, “Hope it can be spread across the country as soon as possible.” Others remain cautious, pointing out that past policies have often fallen short.
Ultimately, China’s population crisis is about more than money. It is tied to economics, gender roles, history, and cultural values. The financial incentives may provide a short-term boost, but long-term success will require a deep change in how people live and raise families.
ACZ Editor: They are attempting to fix a socialist totalitarian and failed one child policy with yet another socialist totalitarian method. But then again, in its execution it ends up largely the same as the U.S. welfare system where women with children and no husband benefit from a wide variety of programs.
The problem in both cases is that these are treated as normal and not exceptions, and neither encourage a natural interest in getting married and having a family. Whatever you subidize you get more of. Not sure I can suggest anything, in either case.