The Chinese government begins the first nation -wide subsidy aimed at raising births, offering to parents 3,600 yuan (£ 375, $ 500) per year for every child under three years.

Even after the abolition of one child’s controversial policy almost a decade ago, the birth rate in China is constantly decreasing and the second largest economy in the world is facing an impending demographic crisis.

The program, announced Monday, will offer parents a total of up to 10,800 yuan ($ 1,500) per child.

Families with children born between 2022 and 2024 can also apply for partial subsidy.

“The benefits will help about 20 million families with the cost of raising children,” according to state media.

According to BBC, the policy will be implemented retroactively since the beginning of this year, the Beijing CCTV broadcasting agency said.

One of the most expensive countries in the world to have children

Several provinces throughout China have piloted some form of allowance to encourage families to have more children.

China is one of the most expensive places in the world to have children, according to a study by the Yuwa population research research. Upbringing a child up to the age of 17 in China costs an average of $ 75,700according to the study.

In January, official figures showed that in 2024, the population of China declined for the third consecutive year, with 9.54 million births. This marked a slight increase compared to the previous year, but the total population of the country continued to shrink.

The population of the country’s 1.4 billion inhabitants is also rapidly getting older, which intensifies Beijing’s demographic concerns.