China Faces Demographic Crisis as Birth Rate Plummets

Mon Jan 19 2026 19:40:06 GMT+0200 (Eastern European Standard Time)

China's birth rate has fallen to a historic low, signaling a looming demographic crisis amid a shrinking population and economic stagnation.

In 2025, China's birth rate dropped to 5.63 per 1,000 people, marking the lowest point since the Communist Party assumed power in 1949. As the population decreased by 3.39 million, government incentives aimed at encouraging childbirth have yet to reverse the trend. This demographic decline raises concerns over economic implications, particularly with an aging population and a depleting workforce.

China's birth rates sank to a record low in 2025, despite the government rolling out a spate of incentives designed to encourage family growth. The latest data indicates the birth rate fell to 5.63 per 1,000 people, a historic low since the Communist Party took over in 1949. Meanwhile, the death rate rose to 8.04 per 1,000, which is the highest since 1968.

The country's population decreased by 3.39 million, reaching 1.4 billion, reflecting a more rapid decline compared to previous years. With an aging demographic and a sluggish economy, the Chinese government has been attempting to motivate more young people to marry and start families.

In 2016, China dismantled its longstanding one-child policy and transitioned to a two-child limit, but this still did not significantly boost birth rates. Consequently, in 2021, the country allowed couples to have as many as three children. Recently, financial incentives have included a 3,600 yuan ($500) subsidy for parents of children under three, with various provinces introducing additional bonuses and extended maternity leaves.

Despite these measures, controversies have arisen, such as a new tax on contraceptives which has raised concerns about the potential for unwanted pregnancies and implications for public health.

China's fertility rate remains among the lowest globally, at around one birth per woman, significantly below the replacement level of 2.1. This trend is mirrored in neighboring economies like South Korea and Taiwan. High costs of living and child-rearing further exacerbate the decline; a 2024 study indicated that raising a child in China is among the most expensive worldwide.

Many young adults express hesitation in starting families, seeking a lifestyle devoid of the pressures associated with parenting. Reports suggest a worrying trend towards a declining workforce and weakened economic sentiment due to the shrinking population.

With experts projecting that China could lose more than half of its current population by 2100, the ramifications for the world's second-largest economy are severe. Increasing numbers of seniors are left to cope alone as younger generations move away, causing an impending crisis regarding eldercare as the pension reserves dwindle.