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 population has fallen for a third consecutive year, a development that underscores a long-term trend with potentially significant implications. This isn’t a sudden shock; the seeds of this decline were sown decades ago, stemming from policies like the one-child policy and exacerbated by widening socioeconomic disparities. The generational wealth gap is immense, with many young people reliant on parental support rather than independent earnings. This financial dependence significantly impacts life choices, including family planning.
The current situation is a culmination of years of declining birth rates. Even the symbolic “year of the dragon,” usually associated with increased births, failed to reverse the trend.… Continue reading
China’s population is projected to decrease by a staggering 51 million people over the next decade, a decline exceeding the population of California. This alarming forecast, from Bloomberg Intelligence, highlights the continued failure of government initiatives aimed at boosting birth rates. The one-child policy, implemented decades ago, profoundly altered the cultural landscape, establishing a preference for single-child families. This cultural shift, coupled with other factors, continues to defy attempts at reversal.
The significant and persistent youth unemployment rate, exceeding 20% before the government ceased public reporting, adds another layer to this complex issue. High unemployment directly impacts the financial stability needed to support a family, making parenthood a less attractive prospect for many young people.… Continue reading
John Q. Hosedrinker 
Matt Underwood