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Hohhot Announces Incentives for New Parents to Address Population Decline
HONG KONG: In an effort to counter the declining birth rate, Hohhot, the capital of Inner Mongolia, has introduced a series of childcare subsidies and initiatives aimed at supporting new mothers. Starting this month, these measures include providing a daily cup of free milk to mothers as part of a program designed to enhance family welfare.
According to Xinhua, more than 20 provinces in China have rolled out similar childcare support programs this month. These subsidies have become a central focus for policymakers seeking to motivate young couples to marry and start families.
China’s population experienced a decrease for the third consecutive year in 2024, with a significant decline in marriage rates—reportedly down by one-fifth, marking the steepest drop ever recorded.
This demographic downturn is largely attributed to the legacy of the one-child policy, which lasted from 1980 to 2015, as well as rapid urbanization and the rising financial pressures associated with raising children. Since 2021, couples have been allowed to have up to three children.
At a recent parliamentary meeting, Premier Li Qiang announced additional childcare subsidies and the introduction of free preschool education in an effort to stimulate higher birth rates. An action plan aimed at boosting domestic consumption also emphasized the necessity of establishing a supportive childcare subsidy system.
Hohhot, a vibrant city surrounded by lush grasslands, revealed specific financial incentives for families: a one-time payment of 10,000 yuan (approximately $1,382.51) will be provided for the birth of the first child, and families can expect an annual subsidy of 10,000 yuan for their second child until the child turns five years old. Additionally, a subsidy will be available for a third child, amounting to 10,000 yuan per year until they reach ten years of age, which is about twice the annual income of many local residents.
In a unique initiative called the "One Cup of Milk Fertility Care Action for Mothers," all mothers giving birth after March 1 will be entitled to receive one free cup of milk daily. They will also receive vouchers worth 3,000 yuan, facilitated by dairy companies Yili and China Mengniu Dairy.
These initiatives underscore the urgency with which stakeholders in China are addressing the challenges posed by an aging population and dwindling birth rates.
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