In a surprising development, several hospitals in Guangdong province are reporting significant increases in childbirth rates for 2024. This positive trend comes as local governments and major companies ramp up efforts to counteract declining birth rates, which have become a pressing concern across China. The surge in births is partly attributed to new cash incentives aimed at encouraging families to have more children.
One hospital in Guangdong announced on December 25 that it had welcomed over 10,000 newborns since the start of 2024. This figure represents a striking increase of more than 23 percent compared to the previous year. The rise in births is not an isolated incident; it aligns with similar trends emerging from other parts of the country, such as Tianmen city in Hubei province.
Tianmen has also experienced a notable uptick in newborns, with a reported 17 percent increase in 2024. The city welcomed 6,530 babies between January and November 2023, and this year it saw an increase of 1,050 newborns compared to last year. Local demographers attribute this surge to a combination of factors, including the influence of the Year of the Dragon—an auspicious time for childbirth in Chinese culture.
To stimulate further growth in birth rates, Tianmen has rolled out an attractive suite of incentives. Families welcoming a third child can receive benefits valued at up to 220,000 yuan. This includes a substantial 120,000 yuan coupon for home purchases, a one-time cash payment of 3,000 yuan, and a monthly subsidy of 1,000 yuan until the child reaches three years old. These financial incentives reflect local government's commitment to reversing the downward trend observed since 2016.
Similarly, Xpeng, a prominent automobile company, is contributing to the initiative by offering its employees a cash reward of 30,000 yuan (approximately US$4,091) for having a third child. He Xiaopeng, the company’s CEO, expressed his support for such initiatives, stating, “We did so because we want our employees to have more kids. I think the company ought to take care of the money, so employees can have children.”
Despite these measures, experts remain skeptical about the long-term effectiveness of such incentives. He Yafu, a noted demographer, commented on the situation: “If childbearing subsidies have no effect, it is because they are too small and need to be increased.” This highlights the ongoing challenge of encouraging a cultural shift towards larger families amidst an ageing population.
The urgency behind these initiatives stems from alarming statistics. In 2023, China recorded just over 9 million newborns—the lowest number since record-keeping began in 1949. This marked the second consecutive year of population decline, raising concerns about the nation’s long-term economic sustainability. As the population ages and birth rates decline, local governments are increasingly pressured to implement effective strategies.
As cities like Guangdong and Tianmen take proactive measures to boost birth rates, data on national population changes for 2024 is anticipated to be released later this week. It remains to be seen whether these regional efforts will significantly impact China's overall demographic trends.
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