By John Q. Hosedrinker 
Facing a demographic crisis, China is implementing measures to boost its declining birth rate. The government is offering parents across the country an annual subsidy of 3,600 yuan ($500) per child under three, totaling up to 10,800 yuan per child. This initiative follows local government efforts, such as payouts in Hohhot and Shenyang, and addresses the high cost of raising children in China, where expenses can reach $75,700 up to age 17. These efforts come in response to a falling population and an aging demographic, with the country recording just 9.54 million births in 2024.
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China’s attempt to address its declining birth rate starts with a $1,500 incentive for parents, spread over a few years. My initial thought? It feels like a rather modest gesture, a band-aid solution at best. The problem, as I see it, goes far beyond just the upfront costs of having a child. It’s deeply intertwined with the fabric of modern Chinese society: the soaring housing prices, the relentless work culture, and the astronomical expenses tied to education. Frankly, a few hundred dollars a year isn’t likely to tip the scales for most.
The irony of this situation isn’t lost on me. China, the same country that enforced a strict one-child policy for so long, now finds itself desperately trying to reverse the trend. It’s a bit like watching a government try to buy its way out of a complex social problem with a handful of pennies. I can’t help but think that if they genuinely wanted to encourage more births, the financial incentive would need to reflect the real costs – covering the expenses of raising a child until adulthood, which is a significant investment.
Echoing the experience of other nations, like Australia’s baby bonus, these sorts of initiatives have often failed to make a significant impact. It makes me wonder if anyone learns from past mistakes or if the focus is just on avoiding the core issues. What’s really needed are real solutions: affordable childcare, accessible quality education and healthcare, decent housing, and a better work-life balance. Instead, we’re seeing governments seemingly throwing peanuts at a problem they, in a way, helped create.
When we are honest, $1,500 as an incentive feels like a joke. It won’t even cover the cost of diapers. If that amount is enough to sway someone into having a child, it suggests they likely can’t afford a child in the first place. This doesn’t really tackle the real underlying concerns. It’s a far cry from the kind of support that’s truly needed to create a family-friendly environment.
Now, I’m not saying that financial incentives are inherently bad. Many Western countries offer tax breaks and other financial benefits to parents, recognizing the value of their citizens having children. But the framing of this particular initiative makes it sound like some sort of bizarre scheme, and it’s worth considering the cultural context. The problem extends beyond economics; it involves culture, the expectations and challenges of the modern lifestyle, and the broader societal pressures.
The issue is much deeper than just the money. Even in more developed areas, the cost of raising a child is substantial, from the basics to the hidden costs of education and childcare. A small incentive is never going to create an environment where people want to have children. It’s just not going to work.
When people consider the life-altering changes, the sleepless nights, and the overall sacrifices, the amount offered feels inadequate. It just isn’t enough to overcome the very real financial and lifestyle hurdles.
It’s frustrating to see such a small amount of money when more significant changes are needed: increased life standards and salaries. It is also understandable that so many people in China are reluctant to bring children into the current world with the current challenges and social and economic issues.
Historical precedents like Australia’s baby bonus provide some insight, as these types of schemes have had limited success. This seems like a small amount. Offering a significantly higher sum, perhaps spread out over the child’s upbringing, might actually have a noticeable impact. It would certainly show a greater commitment.
Given the current reality, that financial incentive seems to fall flat. If it were monthly support, perhaps it would have more appeal. The reality is that, in order to encourage more births, we need to make it worthwhile, not just financially, but also emotionally.
Considering the legacy of the one-child policy, with its impact on countless lives and the emotional turmoil it caused, this financial incentive feels like a slap in the face. Given that history, it’s not hard to see why many might view this incentive with skepticism.
China is grappling with low birth rates, which are common worldwide. What may work is a radical social and economic overhaul, which may not have desirable outcomes. Modern life in cities seems to be the common denominator, with falling birth rates. Modern life is very different from that of agrarian societies where the needs of the family often came before individual desires.
The situation in China mirrors that of 1990s Japan. It’s a technologically advanced nation, brimming with innovation, but is facing the constraints of a shrinking youth population. This has prompted the CCP to invest in AI, showing the gravity of the situation.
In a country as populous as China, it’s hard to see this making a significant difference. Is $1,500 per child truly the solution? They might consider making it per encounter instead. How much would it cost to raise a child from birth to age 18? Given the cost of childcare and education, it would cost a lot.
Offering money is one thing, but it’s probably not enough. If the only motivation to have children is the financial incentive, you’re probably in trouble. If people truly want more children, the society must provide an environment where bringing children is worthwhile.