The city of Hohhot, capital of Inner Mongolia, has rolled out a series of childcare subsidies and support measures to encourage childbirth as China struggles with a declining population. Among the incentives is a unique initiative offering new mothers a free cup of milk every day.
China’s population has been shrinking for the past three years, with 2024 marking another decline. A major factor behind this downturn is the country’s history of restrictive birth policies, including the one-child rule enforced between 1980 and 2015. Additionally, rapid urbanisation and the rising cost of raising children have discouraged many young couples from starting families.
To counter this trend, more than 20 provincial-level administrations have introduced childcare subsidies, according to the official Xinhua news agency. The Chinese government has also made boosting birth rates a national priority. Earlier this month, Premier Li Qiang announced childcare subsidies and free preschool education as part of broader efforts to reverse the demographic crisis.
Hohhot’s new policy offers significant financial incentives to families:
First child: A one-time payment of 10,000 yuan ($1,382.51)
Second child: An annual subsidy of 10,000 yuan until the child turns five
Third child: An annual subsidy of 10,000 yuan until the child turns ten
These benefits amount to roughly twice the annual income of local residents, making them substantial incentives for couples considering having children.
In an effort to support maternal health, Hohhot has also launched the “One Cup of Milk Fertility Care Action”. Under this scheme, mothers who give birth after March 1 will receive a free cup of milk every day. Additionally, new mothers will be eligible for an electronic voucher worth 3,000 yuan, redeemable with two major dairy companies—Yili and China Mengniu Dairy.
Despite lifting birth restrictions in 2021 to allow couples up to three children, marriage rates in China dropped by 20% in 2024, the biggest decline on record. Authorities are now looking at further policies to ease financial burdens on families, including the potential creation of a national childcare subsidy system.
With local governments like Hohhot leading the way, China hopes such incentives will encourage more young couples to start families, helping to slow the country’s demographic decline.
Melissa Enoch
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