China population: cities unveil new childbirth incentives as first decline in more than 6 decades looms

Couples having a third child or more in Shenzhen will be eligible to a cash allowance of 19,000 yuan (US$2,800)

Other cities like Jinan in Shandong province are handing out childcare subsidies and expanding parental leave

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A forecasted drop in China’s population last year would be the first since a two-year decline in 1960-61. Photo: AFP

Published: 10:00am, 12 Jan 2023Updated: 10:21am, 12 Jan 2023

With China on track to record its first population decline in more than six decades, cities across the country have announced new cash incentives to encourage couples to have more children.

Couples having a third child or more in Shenzhen will be eligible for a cash allowance of 19,000 yuan (US$2,800) until the child turns three years old, according to a document released by the city’s health commission on Tuesday.

Payments for having the first and second child will be 7,500 and 11,000 yuan, respectively, until the child turns three, said the document, which is seeking public opinion.

After relaxing its one-child policy in January 2016, China introduced a three-child policy in May 2021 in response to the country’s declining birth rate, which is expected to weigh significantly on the country’s economy in decades ahead.

Experts estimate that China’s population may have started shrinking last year, with official figures set to be announced by the National Bureau of Statistics (NBS) next week.

A drop in China’s population would be the first since a two-year decline in 1960-61 due to the impact of the Great Famine. The population fell by around 10 million in 1960 and another 3.4 million in 1961 before rebounding by 14.4 million in 1962, according to official figures.

In Jinan, the capital city of eastern Shandong province, mothers who give birth to a second or third child this year will receive a childcare subsidy of 600 yuan each month until he or she turns three, according to a notice released by the local government on Tuesday.

Mothers will also be entitled to 158 days of maternity leave for each child and fathers will receive at least 15. Parents with children below the age of three can have annual parental leave of 10 or more days.