China Is Now Giving Money to Encourage Couples to Have More Children

The reversal of the disastrous one-child policy is remarkable. However, the regime still refuses to admit that the brutal enforcement of that policy was a crime.

By Hu Zimo

July 31, 2025

Children in China: an endangered species? Credits.

In July 2025, China introduced a nationwide childcare subsidy program that provides families with 3,600 yuan (about $500 USD) per year for each child under three. According to a semi-official interpretation, the subsidy will apply to the first, second, and third children but not to the fourth and beyond, although interpretive doubts remain.

Although the amount is modest, this policy represents a major change in the country’s population strategy. It aims to address the long-term effects of the one-child policy and combat a worsening demographic crisis.

China’s one-child policy, launched in 1980, was among the most stringent population control efforts in recent history, lasting over thirty years. It combined incentives with strict enforcement—such as fines, forced abortions, and sterilizations—to limit population growth effectively. Nevertheless, it led to unforeseen issues, including an aging population, a decreasing workforce, and a gender imbalance.

By 2015, when the policy was officially ended, China was already facing the consequences. The birth rate had sharply declined, and its demographic structure was starting to invert. In 2016, the government permitted couples to have two children, and by 2021, the cap was increased to three. However, these changes did not lead to a lasting baby boom. Deep-seated cultural shifts, economic challenges, and evolving gender expectations had taken hold, making many young Chinese hesitant to start families.

The 2025 childcare subsidy directive stands as Beijing’s most extensive pro-birth initiative so far. According to the new policy, families will get 3,600 yuan each year for every child under three. This subsidy, applicable retroactively from January 1, 2025, is exempt from income tax and welfare calculations. It is projected to assist over 20 million families every year.

This step builds on years of local pilot initiatives. Cities such as Hohhot and Shenyang had already offered substantial incentives, like one-time payments of up to 100,000 yuan for third children. The new policy uniformizes support across provinces, demonstrating a firmer central government commitment to boosting fertility.

A Chinese woman with her child. Credits.

China’s population decreased by 2 million in 2024, marking the largest decline since 1961. The birth rate reached a record low in 2023, with only 6.39 births per 1,000 people. While 2024 experienced a slight recovery—partially due to the favorable Year of the Dragon—the overall trend continues to decline.

Meanwhile, the aging population continues to grow rapidly. By the end of 2024, more than 310 million Chinese people are expected to be aged 60 or older. Projections indicate that by 2035, one in three people will be over 60, raising worries about labor shortages, pension system sustainability, and healthcare expenses.

The one-child policy did more than lower birth rates; it transformed societal views on family. For generations, Chinese families were accustomed to having one child as standard. Factors like urbanization, higher education levels, and more women entering the workforce strengthened this perspective.

Today, many young couples cite high expenses, career stress, and limited childcare support as reasons for postponing or avoiding having children. In China, the estimated cost to raise a child through college is about 680,000 yuan ($94,000 USD), which makes parenthood a significant financial challenge.

Additionally, the policy led to a generation of only children burdened by the “4-2-1” situation: one child supporting two parents and four grandparents. This dynamic has heightened concerns about elder care and financial stability, which has further reduced fertility intentions.

The subsidy directive indicates a significant change in policy approach—moving from population control to supporting populations.

The government has initiated public campaigns to change cultural attitudes. In 2023, family planning authorities in Xi’an sent text messages urging residents to embrace “sweet love, marriage, and childbirth.” Although these efforts may appear symbolic, they reveal increasing regime concern about demographic trends.

Propaganda image of young Chinese Communist Party pioneers. Credits.

The annual subsidy of 3,600 yuan is modest relative to the true expenses of raising a child. Many young individuals remain skeptical, citing concerns such as job insecurity, gender inequality, and insufficient institutional support.

Furthermore, the impact of the one-child policy still influences expectations. Some families are concerned about the quality of education and healthcare for their children.

China has yet to fully confront the legacy of its problematic one-child policy. The government probably won’t admit that the policy was founded on pseudo-science and was enforced by disregarding human rights. Nevertheless, only by making this acknowledgment can a new culture of family and birth become possible.

Source: bitterwinter.org