The country will pay the first family allowances in its history (420 euros per year)

Faced with the demographic crisis crossed by the Asian country. Moreover, China hopes to boost the birth rate by paying an unprecedented family allowance to parents.

The Chinese government will pay an unprecedented annual family allowance of 420 euros per child under the age of three. However, to relaunch the birth rate in the face of the current demographic crisis. For example, a state media announced on Monday. Similarly, The number of inhabitants in China. Nevertheless, the second most populous country in the world behind India, has dropped for the third consecutive year in 2024. Meanwhile, According to some UN projections, the population could go from 1.4 billion inhabitants today to less than 800 million by 2100.

The amount of the allowance. Similarly. For example, paid under conditions, will be 3,600 yuan per year (around 420 euros), said state television CCTV, citing a decision of the country will pay first family government and the country will pay first family communist party in power. Nevertheless, “This is a major national measure to improve the well-being of the population,” said the chain. However. However, “This provides direct financial assistance to families across the country to reduce the cost of education for children,” she added.

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China recorded only 9.54 million births last year – half less than in 2016. The population decreased by 1.39 million in 2024, for the third consecutive year. country will pay first family China has lost its country will pay first family rank of the most populated country in the world for. the benefit of India in 2023. The marriage rate is also at a very low level. many young couples renounce having children, due to the high costs of education and the repercussions on their career.

“An important turning point” – Country will pay first family

In the streets of Beijing. parents welcomed the new measure from AFP, while stressing that it would probably have a short -term limited influence. “For young recently married couples who already have a child. it could encourage them to have a second. ” said Wang Xue, in an electric scooter and accompanied by his nine -year -old son.

“This help allows you to lighten the charges a little,” said the 36 -year -old mother. “A child remains manageable. But if I had two, I would country will pay first family probably feel some financial pressure,” she nuances.

Dad of a girl. a boy. Zhang Wei, 34, believes country will pay first family that these allowances constitute “a good start” because “raising a child is very expensive”. “All aspects related to the education of a child have clearly exploded compared to my generation. ” he explains, citing food, medical care and everyday expenses.

Analysts welcome these new allowances, but believe that they will not be enough to reverse the demographic decline. Additionally, “It is encouraging that the government finally decides to use the budgetary tool to stimulate the birth rate. ” said Zhiwei Zhang, an economist at Pinpoint Asset Management. According to him, the authorities thus recognize the “major challenge” that the low birth rate represents.

For Zichun Huang. economist of the Capital Economics cabinet. the measure announced on Monday is “an important turning point” because the concept of family allowances is recent in country will pay first family China and it could “pave the way for more aid in the future”. But the amounts “are too low to have country will pay first family a short-term impact on the birth rate. consumption”, low from the Cavid-19 pandemic, he underlines.

Local incentives

The measurement applies retroactively from January 1, 2025. Concretely, the parents of babies born from this date will benefit from three full years of allowances at 3,600 yuan. Those whose children were born between January 1, 2022 and at the end of 2024 will have subsidies, but reduced.

Several local authorities had already established financial incentives to birth. In March. the city of Hohhot. capital of the Region of Inner Mongolia (North), began to offer up to 100,000 yuan (around 12,000 euros) per birth to couples from the third child. In Shenyang, families with a third child receive 500 yuan per month up to three years. In Hangzhou, country will pay first family a unique allowance of 25,000 yuan (around 3,000 euros) is paid for the third child.

China faces rapid aging of its population. which raises concerns about the country will pay first family viability of its pension system. Furthermore, In 2024, nearly 310 million Chinese were 60 years old or over.