Home / Business and Economy / China's Birth Rate Hits Historic Low Amidst Policy Shifts
China's Birth Rate Hits Historic Low Amidst Policy Shifts
19 Jan
Summary
- China's birth rate reached its lowest point since 1949.
- Population decline marks the fourth consecutive year.
- New condom tax introduced, while childcare services are tax-exempt.
China is facing its most significant demographic challenge in decades, with the birth rate hitting a historic low in 2025, falling to 5.63 births per 1,000 people. This marks the lowest point recorded since 1949 and signifies a continued population decline for the fourth year running. The total population now stands at 1.404 billion, a decrease of 3 million from the previous year.
Families cite prohibitive costs and intense competition as major hurdles to raising children, issues compounded by economic pressures. Despite government efforts to boost birth rates, including a past increase in the child limit to three, success has been minimal. Independent experts estimate the fertility rate is now around 1, far below the 2.1 replacement level needed for population stability.
In response, Beijing has implemented a controversial 13% tax on contraceptives, including condoms, since January 1, 2025. Conversely, kindergartens, childcare facilities, and matchmaking services have been added to the tax-exemption list to encourage child-rearing. These measures follow China losing its title as the world's most populous nation to India in 2023.
