Hong Kong: China is set to implement a series of policies aimed at addressing its rapidly aging population while also encouraging higher birth rates, as outlined in two government documents released on Wednesday during the annual session of the National People’s Congress.
The country, facing a declining birth rate and an increasingly elderly demographic, plans to expand support for both young families and senior citizens. Measures include childcare subsidies, free preschool education, and adjustments to pension benefits.
Demographic Shift and Aging Crisis
China’s population has declined for the third consecutive year in 2024, with marriage rates plummeting by 20%—the steepest drop on record. Authorities have struggled to reverse this trend despite incentives promoting marriage and childbirth.
The aging population is a growing concern, with the number of people aged 60 and older projected to exceed 400 million by 2035—a figure larger than the combined populations of the United States and Britain. In response, China will raise the minimum basic old-age benefits for rural and non-working urban residents by 20 yuan and plans an “appropriate increase” in pensions for retirees, though specific details were not provided.
Authorities also aim to expand public interest elderly care services, particularly in rural areas and for seniors with disabilities.
Premier Li Qiang’s official work report stated that China would “prudently advance the reform to gradually raise” the statutory retirement age, though further details were not disclosed. The government had previously announced a phased retirement age increase, raising the age to 63 for men (from 60), 58 for white-collar women (from 55), and 55 for blue-collar women (from 50). The policy took effect on January 1 and will be implemented over 15 years.
Encouraging Childbirth Through Financial Support
To encourage higher birth rates, China will provide childcare subsidies, though specific amounts were not mentioned. The government also plans to establish a comprehensive childcare service system and gradually introduce free preschool education.
Additional support will be extended to children in rural areas and those living with migrant worker parents, with improved access to care and services. Women in the early stages of pregnancy will receive expanded healthcare services, though further details were not provided.
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China’s declining birth rate is largely attributed to its one-child policy, which was enforced between 1980 and 2015. While couples are now allowed to have up to three children, economic pressures and shifting social attitudes have led many young Chinese to forgo parenthood.
Despite previous efforts to boost birth rates—such as extended maternity leave, tax incentives, and housing subsidies—many young couples remain hesitant due to the high cost of raising children. A leading Chinese think tank recently reported that China is one of the most expensive countries in the world to raise a child relative to GDP per capita, with significant financial and career-related sacrifices, particularly for women.
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As China grapples with its demographic challenges, the success of these new policies will depend on their implementation and public reception.
