FX.co ★ China Offers Subsidies to Boost Birthrate, Spur Growth

China is preparing to implement nationwide cash subsidies to encourage childbirth in response to ongoing population declines that threaten long-term economic stability, as reported by Bloomberg News. The draft policy suggests that families would receive an annual sum of CNY 3,600 for each child born on or after January 1, 2025, with payments continuing until the child reaches the age of three. Although this plan has not been formally announced, it highlights Beijing’s increasing urgency in addressing demographic challenges. Despite the abolishment of the one-child policy almost a decade ago, the country’s birthrate has not rebounded, with only 9.54 million births recorded in 2023—approximately half the number in 2016. Furthermore, local governments are said to have initiated their own incentives, such as housing subsidies and one-time payments.