China is introducing a sweeping package of financial incentives—from wedding subsidies to major child-rearing grants -- in an urgent attempt to reverse its steep population decline.

The dramatic shift marks a complete reversal from the decades-long one-child policy, now widely blamed for pushing the nation into a deep demographic crisis.

According to The Times UK, provinces and cities across China are rolling out new benefits to encourage young couples to marry and have children.

Zhejiang province, once governed by President Xi Jinping, is among the latest to subsidize marriage. Cities like Ningbo and Hangzhou are now offering wedding vouchers worth up to 1,000 yuan (£100), valid for banquets, photography or travel. Ningbo officials said the subsidies will be given on a first-come, first-served basis.

Some regions have introduced even more aggressive incentives and earned the nickname “baby cities.” The standout example is Tianmen in Hubei province, which has been praised nationally after local births rose 17% in the past year.

Families with three children can now receive up to 220,000 yuan (£23,000) in combined subsidies and housing benefits—one of the highest support packages in the country.

Demographic crisis rooted in one-child policy

China is battling one of the world’s steepest population declines, a crisis many experts trace to the rigid one-child policy in place for 35 years.

The policy, enforced with heavy fines and widespread forced abortions, was once celebrated by the Communist Party for preventing “400 million births.” But it left long-term consequences:

a rapidly aging population,
a shrinking workforce, and
a severe gender imbalance of around 40 million more men than women.

Although the policy ended in 2015, the birth rate has continued to fall, with little sign of recovery.

Young women reluctant to have children

Despite government pressure, surveys show that only a minority of female university students plan to have children—while nearly 40% say they do not want them at all.

Common reasons include:

high financial costs,
workplace discrimination,
economic instability, and
the burden on China’s “only-child generation” to support aging parents.

This reluctance has left government incentives struggling to gain traction.

National child benefit, intrusive local interventions

Beijing introduced a national child benefit this year: 3,600 yuan (£380) annually for each child under age three.

However, much of the responsibility to boost births has been pushed to local governments, resulting in inconsistent -- and sometimes intrusive -- policies.

Women across several provinces reported unsolicited calls from local officials asking about menstrual cycles or pregnancy plans, sparking public criticism.

More developed regions are shifting their focus toward promoting marriage rather than pressuring women.

Tianmen offers:

a 120,000-yuan (£12,800) housing subsidy,
expanded maternity benefits, and
a 60,000-yuan (£6,400) marriage bonus for couples registering in the city.

China has also removed rules requiring couples to marry in their officially registered hometowns—previously a major hurdle for migrant workers.

Marriage rates still falling despite incentives

Even with generous benefits, China’s marriage rate continues to collapse.

Marriages fell to 6.1 million in 2024, down from 7.7 million the previous year and more than 13 million a decade ago.

President Xi Jinping, who is cautious about large-scale welfare spending, is expected to closely monitor the rising costs of these programs. Whether financial incentives alone can overcome deeply rooted social attitudes remains uncertain.

Beijing tests new limits in social engineering

As The Times UK reports, China appears prepared to push the boundaries of incentive-driven policymaking to confront a crisis it once helped create.

Whether this experiment will succeed—or simply highlight the limits of state intervention in family life—remains an open question.