In a bold step to combat its declining birth rate, China has announced a new policy offering a $500 cash incentive for every newborn child. The initiative is part of broader efforts by the government to encourage childbirth as the country faces a rapidly aging population and a shrinking workforce.
The incentive will be provided directly to families upon the birth of a child, with additional support measures such as extended maternity leave and tax breaks also under consideration. Local authorities in several provinces have already begun implementing similar schemes, but this latest plan marks a nationwide rollout.
Experts believe this financial push could help alleviate the economic burden of raising children, which has become a key factor discouraging many young couples from expanding their families. China’s population declined for the second consecutive year in 2024, raising alarm bells about long-term economic sustainability.
