China Faces Birth Rate Crisis as Population Declines

Tue Jan 20 2026 00:31:55 GMT+0200 (Eastern European Standard Time)

Amid efforts to boost birth rates, China's demographics continue to decline, hitting a record low and raising concerns about future economic implications.

China's birth rate has dropped to a record low of 5.63 per 1,000 people as the population shrinks, exacerbating challenges posed by an ageing demographic and a weakening economy. The government has implemented various incentives to encourage higher birth rates, such as financial bonuses and extended maternity leave. However, despite these measures, concerns over the cost of raising children and changes in lifestyle preferences among the younger generation complicate the situation. Experts warn that if trends continue, China's population may halve by 2100, posing serious economic and social challenges.

China's birth rates sunk to a record low in 2025, despite the government rolling out a spate of incentives to boost it, as the country's population fell for the fourth straight year.

Government data on Monday showed that the country's birth rate fell to 5.63 per 1,000 people—its lowest since the Communist Party took power in 1949. Meanwhile, the death rate rose to 8.04 per 1,000 people, the highest since 1968.

By the end of 2025, China's population is expected to decrease by 3.39 million, bringing it down to 1.4 billion, a faster decline than in previous years.

Faced with an ageing population and a sluggish economy, Beijing has been working hard to encourage more young people to marry and have children. In 2016, the government abolished its long-standing one-child policy and replaced it with a two-child limit. When that did not lead to a sustained increase in births, a three-child policy was introduced in 2021.

Recent incentives include offering parents 3,600 yuan (approximately $500) for each child under three years of age, along with additional provincial benefits such as baby bonuses and extended maternity leave. However, some of these measures have sparked controversy—for instance, a proposed 13% tax on contraceptives has raised fears about unwanted pregnancies and rising HIV rates.

China's fertility rate now stands at around one birth per woman, far below the replacement rate of 2.1. Other East Asian economies like South Korea, Singapore, and Taiwan also report similarly low fertility rates.

According to a report by the YuWa Population Research Institute, one of the contributing factors to the low birth rate is the high cost of raising children in China, which is regarded as one of the most expensive countries for parenting.

Many young Chinese voice concerns over their lifestyle choices, preferring a carefree life that may not include parenting. A Beijing resident remarked that few of their peers have children, citing exhaustion due to societal pressures to attain the 'best' parenting standards.

Experts from the United Nations project that China's population will decline significantly, with predictions of losing more than half of its population by 2100. This demographic shift poses serious economic implications, including a declining workforce and diminished consumer sentiment, further impacting the world's second-largest economy.

Amid this backdrop, the government faces increasing pressure to address the needs of an ageing population, as more seniors find themselves alone or relying heavily on state assistance. However, budgetary constraints pose dire challenges to adequately fund the pensions for this growing segment of society.