China is intensifying efforts to reverse its declining birthrate, with some regions offering substantial financial incentives for families to have more children. Hohhot, the capital of Inner Mongolia, has considerably increased its child subsidy, now offering up to 100,000 yuan (approximately $14,000 USD) per child for families with three or more offspring. This represents a 2,000% jump from the initial subsidy introduced in 2023, with payments distributed as 10,000 yuan annually until a child reaches the age of 10.
These measures come as China grapples with a demographic shift characterized by an aging, increasingly affluent, adn better-educated population. The median age in China has risen from 32 two decades ago to just over 40 currently. A primary concern for officials is the shrinking working-age population, a critical component for the nation’s manufacturing sector, which is already facing challenges due to trade tensions with the U.S.,including threatened tariffs.
While new births will not instantly address the current demographic imbalances, they are seen as crucial for safeguarding China’s long-term interests. In parallel with these financial incentives, educational initiatives are also being implemented, with AI classes being offered to children as young as six. However, experts like Emma Zang, a professor at Yale University, suggest that a more impactful approach would involve investing in social infrastructure such as accessible childcare, extensive parental leave policies, and robust job protections for women.