China has unveiled a new fertility subsidy program in response to the country’s record-low birth rates, marking its most aggressive effort yet to address a deepening demographic crisis.
The government announced financial incentives, including direct cash subsidies for families with newborns, expanded parental leave, and tax breaks aimed at reducing the economic burden of child-rearing. Local governments will also be required to provide housing and education benefits to encourage larger families.
The move comes as China’s birth rate continues to plummet, reaching its lowest level since records began, raising concerns over a rapidly aging population and shrinking workforce. 
“The declining birth rate poses a serious challenge to economic and social development,” said a spokesperson for the National Health Commission. “This subsidy program is designed to ease the pressures on young families and promote a sustainable population structure.”
Experts warn, however, that financial incentives alone may not be enough to reverse the trend, citing high living costs, career pressures, and shifting attitudes toward marriage and parenthood among younger generations.
China has already relaxed its one-child policy, first allowing two children in 2016 and three children in 2021, but these changes have had little impact on reversing population decline.
Demographers say that unless fertility rates rebound, China faces long-term risks to its labor market and economic growth. The new program signals Beijing’s recognition of the urgency of its demographic challenges.
