The story so far: The Chinese population has been consistently declining since 2022. As per the UN, by 2050 the Chinese population will be around 1.3 billion from a peak of 1.4 billion. This also means that the ratio of young to old will change and that around 40% of the population will be over 60. The oft repeated idea of China getting older before it gets richer seems unavoidable. In the hopes of avoiding this very challenge, Chinese President Xi Jinping had abolished the one-child policy in 2016 and replaced it with a two-child policy. In 2021, he extended it to a three-child policy. However, the decline has continued.
What policies did they implement?
There has been a long list of policies which the Chinese government has implemented to mitigate the ageing challenge. The most recent one was implemented on January 1, 2026. The government added 13% VAT on contraceptives and condoms. In 2025, the government announced a subsidy of 3,600 yuan (equivalent to $500 dollars) for new parents for the first three years.
There has also been a waiver of fees for students in the last year of kindergarten while also reducing the fees of kindergartens in the private sector. Moreover, the salaries of kindergarten teachers have been included in fiscal guarantees to ensure that they are timely.
