In brief
Despite government efforts to incentivize childbirth, China's birth rate has plummeted to a record low of 5.63 births per 1,000 people, marking the fourth consecutive year of population decline. The increase in the death rate combined with a declining birth rate signals a worrying trend for the country’s demographic and economic future. Initiatives such as financial bonuses for parents and policies allowing up to three children per family have failed to reverse the trend, leaving China to grapple with the repercussions of an aging population and workforce shortages.
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 – a record low since the Communist Party took power in 1949 – while its death rate rose to 8.04 per 1,000 people, the highest since 1968.
Its population fell 3.39 million to reach 1.4 billion by the end of 2025, marking a quicker decline than the previous year.
Faced with an ageing population and sluggish economy, Beijing has been trying to encourage more young people to marry and have children.
In 2016, it scrapped its longstanding one-child policy and replaced it with a two-child limit. When that did not lead to a sustained upsurge in births, authorities announced that they would allow up to three children per couple in 2021.
More recently, China has offered parents 3,600 yuan (£375; $500) for each of their children under the age of three. Certain provinces are also providing additional payouts and extended maternity leave.
Some of these incentives have stirred controversy. For instance, a new 13% tax on contraceptives has sparked concern about unwanted pregnancies and HIV rates.
China has one of the lowest fertility rates in the world, at around one birth per woman, below the replacement rate of 2.1. Other economies in the region, such as South Korea, Singapore, and Taiwan, also face similar low fertility rates.
China is among the most expensive countries to raise a child, according to a 2024 report by the YuWa Population Research Institute in Beijing.
Factors such as the desire for a carefree life and the financial burden of child-rearing contribute to a significant number of individuals choosing not to have children. Experts estimate that China will continue to lose population, with projections of more than half of its current population by 2100.
The implications of a shrinking population could exacerbate an already declining workforce and impact consumer sentiment. Many young people are moving away from their parents, leaving a growing number of seniors relying on government support, which the state-run Chinese Academy of Social Sciences warns is insufficient.
