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China launches breakthrough strategy in Tianmen: million-dollar incentives for families to increase birth rate amid historic crisis

Written by Rafaela Fabris
Published 17/01/2025 às 15:16
China launches breakthrough strategy in Tianmen: million-dollar incentives for families to increase birth rate amid historic crisis
China is taking these measures because it is facing a severe birth rate crisis, with fewer people being born and more people getting older. This threatens the country's economy and future, as there will be fewer young people to work and support the population.

With births expected to rise by 17% in 2024, Tianmen is offering up to 120.000 yuan in incentives for families with more children, as China faces its lowest birth rate since 1949.

As China grapples with a historic birthrate crisis, a small city in Hubei province called Tianmen is making waves by defying the odds. In 2024, Tianmen saw a staggering 17% increase in births, while the rest of the country continues to decline. The secret? A bold, well-planned strategy that combines financial incentives and cross-sector collaboration.

The birth rate scenario in China

Since 2016, China has seen its birth rates plummet. In 2023, the country recorded just over 9 million births, the lowest number since the founding of the People's Republic in 1949. This decline has raised concerns about the ability of the economy to support a population increasingly aged.

Amid this bleak landscape, Tianmen stands out. The city has managed to reverse the trend with a robust financial incentive program that has encouraged families to have more children. It’s like swimming against the current of a river — a feat that inspires other regions.

The Tianmen Model: Incentives that Make a Difference

Tianmen in China doesn’t hold back when it comes to supporting families. With a package that includes 120.000 yuan in housing vouchers, a 3.000 yuan one-time payment and 1.000 yuan monthly payments until the child is three years old, the city has created a lure that is hard to ignore. These measures act as a safety net for parents who might otherwise be hesitant to expand their families.

In addition to government support, companies like electric vehicle maker Xpeng are offering generous incentives, up to 30.000 yuan for employees with three children, and even higher amounts for those with four or more. These types of partnerships are the fuel that keeps the program going.

The contrast with the rest of China

The reality outside Tianmen is quite different. High living costs, especially in big cities, make the idea of ​​having more children almost unfeasible for many young people. This creates a dangerous cycle: fewer births mean fewer people in the future to support a growing elderly population.

Many young people in China prioritize careers and quality of life over starting a family. Financial and social pressures make them question whether it is worth investing in raising children. in such a competitive environment.

Culture and tradition: influencing factors

The Year of the Dragon, considered auspicious in the Chinese calendar, has brought a small increase in births in some regions, such as Guangdong, which saw a 23% increase. This shows that incentive policies can be more effective when aligned with cultural beliefs.

Initiatives that respect local traditions have a greater chance of success. After all, it is easier to motivate people when they see cultural meaning in the actions.

The viability of national policies

Experts say the Tianmen model is inspiring, but implementing it on a national scale would require huge financial investment and strong collaboration between the central government and private companies. It is like trying to replicate a cake recipe to feed a banquet.

Solving China's birth crisis won't be simple. It requires creativity, commitment and the willingness to think outside the box. Tianmen has shown that it is possible, but the journey to success on a national scale is still long.

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Rafaela Fabris

He talks about innovation, renewable energy, oil and gas. With over 1.200 articles published in the CPG, he updates daily on opportunities in the Brazilian job market. Suggestions for topics: rafafabris11@gmail.com

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