A remote county in northwestern China’s Gobi Desert, with an average of just five births per month, is offering a significant financial incentive to encourage families to have more children. The local government of Subei, a Mongolian autonomous county in Gansu province, has rolled out a subsidy program that offers up to 100,000 yuan (US$13,812) for families having a second or third child.
Subei, which spans more than 66,000 square kilometers (25,482 square miles) but has a population of only 15,000, is grappling with the challenges of a declining population, a problem that is growing across China. In an effort to reverse this trend, the government has pledged to spend “real money” to support fertility. According to a statement posted on its website last week, the initiative will offer financial assistance over three years to families who have additional children.
This program is one of the largest cash incentives in China designed to boost birth rates, as local governments around the country introduce various incentives to encourage childbirth. However, Zhao Xudong, a professor at Renmin University in Beijing, raised concerns about the funding and sustainability of the subsidies. Zhao noted that Subei’s situation is somewhat “extreme” in light of China’s ongoing demographic shift.
“The issue is whether such incentives can be maintained, and if they will truly encourage people to have more children, especially since subsidies have not been effective in other regions,” Zhao said.
For families having a second child, the monthly subsidy begins at 1,000 yuan (US$138) in the first year, increasing to 1,400 yuan in the second year and 1,700 yuan in the third year. Families with a third child will receive a higher monthly subsidy, starting at 2,000 yuan, rising to 3,000 yuan in the second year, and 3,300 yuan (US$456) in the third year.
In addition, the policy includes a one-time incentive of 10,000 yuan for individuals who move their household registration to the area and have one child.
The policy, which has been in place since late October, has yet to produce any formal applications, though there has been interest and inquiries, according to Chengdu-based Red Star News. A local official noted that the county saw its population decline for the first time in decades last year, further highlighting the urgency of the situation.
Subei’s demographic challenges reflect a broader trend seen in many remote regions of China, which are experiencing population decline due to emigration and low birth rates. This trend threatens the long-term economic stability of these areas.
Subei, Gansu’s largest county by area, reported a gross domestic product (GDP) of 2.6 billion yuan (US$359 million) last year, with a per capita GDP of over 173,000 yuan, according to official data.
In response to China’s broader demographic crisis, other regions, such as Luliang city in Shanxi province, have introduced similar measures to encourage marriage and childbirth. Earlier this month, Luliang announced subsidies of 8,000 yuan for families with three children, 5,000 yuan for families with two, and 1,000 yuan for those with one child.
China’s population dropped for the second consecutive year in 2023, falling to 1.4 billion, a decrease of over 2 million people. With only 9 million births recorded in 2023, the country saw the lowest birth rate since official records began in 1949.
Related Topics:
