China’s Birth Rate Plan: Tax, Childcare & Incentives

China’s population has declined for three consecutive years, with only 9.54 million births recorded in 2024 – roughly half the number from a decade ago when the country began relaxing its family planning policies. The recent implementation of a tax on contraceptives has sparked public concern and online mockery amid ongoing economic challenges.

China’s Declining Birth Rate and New Contraceptive Tax

The tax applies to a range of contraceptives, including condoms, birth control pills, and devices. Concerns have been raised about potential increases in unwanted pregnancies and HIV rates as a result of the tax.

Social media users have reacted to the tax with humor and skepticism. One user joked about stocking up on condoms ahead of the price increase, while another pointed out the significant financial burden of raising a child compared to the cost of contraception.

A 2024 report by the YuWa Population Research Institute in Beijing identified China as one of the most expensive countries in which to raise a child. High costs are attributed to competitive academic environments and the difficulties women face balancing work and family life.

The economic slowdown, exacerbated by a property crisis impacting savings, has contributed to uncertainty among families, particularly young people, regarding their future.

Daniel Luo, a 36-year-old resident of Henan province, stated he has no plans to have more children. He compared the price increase to a subway fare hike, suggesting it wouldn’t significantly alter people’s habits.

Luo estimated the cost increase for a box of condoms would be minimal – potentially five to twenty yuan per year – and therefore affordable.