China promises cash bonuses to families to boost birth rate

Authorities in the northern Chinese city of Xuzhou (administrative center of the Inner Mongolia Autonomous Region) have developed financial incentives for residents to increase the birth rate and combat the aging population, Xinhua news agency reported.

The city government will now pay a one-time bonus of 10,000 yuan ($1,400) to families with their first child, 10,000 yuan annually for the second child until the age of five, and 10,000 yuan annually for the third and subsequent children until the age of ten.

The initiative comes amid a declining birth rate and shrinking population in China. According to Reuters, the country's population is expected to decline by 2.08 million in 2023 and by 1.39 million in 2024.

The State Academy of Sciences of the People's Republic of China predicts that the country's pension system will run out of money by 2035 if the current situation continues. By then, the number of people over 60 (retirement age) in China will increase from about 280 million to 400 million.