China: Population sinks for fourth year in a row

The continued downturn comes despite numerous measures introduced by the Chinese government to encourage child-rearing a decade on from the end of its notorious, long-time one-child policy.

But incentives including better financial support for parents — the government announced cash subsidies of 3,600 yuan ($500) per child to families in July 2025 and tax breaks for kindergartens, daycares and matchmaking services — have failed to have the desired effect.

Nor has a 13% tax increase on condoms and other contraceptives, with the fertility rate estimated to have flatlined at 1 child per woman in her lifetime, far below the 2.1 rate that would maintain the size of China's population.