3,600 yuan for one kid: China once fined families for extra babies, now it’s paying couples to have them

In 1979, as China's population approached one billion, Deng Xiaoping introduced the one-child policy, strictly limiting family size and imposing penalties on violators. Over four decades later, the government has reversed course—now offering cash incentives to encourage childbirth.

In late July, authorities announced a new nationwide initiative to boost birth rates. Beginning January 1, 2025, families will receive 3,600 yuan (around £500) annually for each child under the age of three—amounting to a maximum of 10,800 yuan per child over three years.

Described by Beijing’s state broadcaster CCTV, as reported by AFP, as a “major nationwide policy aimed at improving public wellbeing,” the scheme is intended to ease the financial burden of parenting.


Yet despite scrapping the one-child rule nearly a decade ago, China’s birth rate continues to fall. In 2023, just 9.54 million births were recorded—half the number in 2016 when the policy ended. That same year, the population declined by 1.39 million, while India surpassed China as the world’s most populous country. Meanwhile, China's ageing population swelled to nearly 310 million people aged 60 and above in 2024.

Low marriage rates and growing reluctance among young people to have children are key concerns. Many cite economic pressures and career ambitions as reasons to delay or forgo parenthood.

“The cost of raising a child is enormous, and 3,600 yuan a year is a mere drop in the bucket,” one parent, surnamed Li, told CNN. A study by the YuWa Population Research Institute estimates the cost of raising a child to age 18 in China at 538,000 yuan (around £75,000)—more than six times the GDP per capita. In cities like Beijing and Shanghai, that figure exceeds 900,000 yuan and even 1 million yuan.

“Having kids would only bring more hardship,” Li added. “I’m not a capitalist or anything, but my child probably wouldn’t have a good life either.”

China’s economic slowdown and soaring youth unemployment complicate government efforts to boost birth rates. Despite lifting the cap to two children in 2016 and to three in 2021, fertility rates have continued to decline. The population has now shrunk for three consecutive years, with only a slight recent uptick in births—though experts expect the downward trend to persist.

While the new subsidy will also partially cover children under three born before 2025, its impact may be limited. CNN reports that while some parents welcome the support, it’s unlikely to significantly raise birth rates—similar efforts in Japan and South Korea have failed to reverse demographic declines.

Many young Chinese face daunting obstacles: high housing costs, long working hours, and job insecurity. These are widely seen as the main deterrents to marriage and family life.

On Chinese social media, millennials and Gen Z—many of whom lived through the one-child era—have shared images of the fines their parents paid for exceeding the limit, underscoring the irony of today's pro-natalist policies.

Once hopeful for a better life than their parents, many young people now face disillusionment. Skyrocketing property prices, the devaluation of university degrees, and nepotism in the job market have shattered the promise that hard work guarantees success. In an increasingly competitive society, many feel trapped—fueling the rise of social movements like “lying flat,” where individuals reject societal expectations, including marriage and childbearing.