The capital of China’s Inner Mongolia Autonomous Region has unveiled one of the country’s most generous child rearing subsidies to date, offering up to 100,000 yuan ($13,800) per newborn and other preferential policies to families with three or more kids. 

Hohhot, a regional hub of over 3 million in North China, announced the subsidy as part of a new plan to create a “development-oriented, friendly, and vibrant city.” The subsidy represents a 2,000% increase over Hohhot’s previous three-child allowance, a one-time 5,000-yuan payment introduced in 2023.   

Like many Chinese cities, Hohhot has experienced a steady decline in births in recent years, according to government statistics. According to the most recent publicly available data, the city recorded 20,000 newborns in 2023, down from 28,000 in 2019. 

Under the new policy, families with at least one parent holding a Hohhot hukou household registration will receive 100,000 yuan if they give birth to a third child after March 1. The subsidy will be paid out at a rate of 10,000 yuan per year until the child turns 10. 

In addition to the subsidy, third children will enjoy preferential policy treatment, including the ability to attend any school in the city. 

For families with multiple births from a single pregnancy, each child born after the second will receive the same benefits. 

Hohhot also plans to hand out cash to first- and second-time parents, awarding them subsidies of 10,000 yuan and 50,000 yuan, respectively, after March 1. 

“Distributing the childcare subsidy in stages is intended to ease financial pressure while also reflecting the municipal party committee and government’s support for childbirth,” Yang Zhong, deputy director of the Hohhot Municipal Health Commission, told domestic media.  

The average disposable income of Hohhot residents was 47,000 yuan in 2023.

Hohhot’s move follows calls for more pro-natal policies made during the “Two Sessions,” the annual meetings of China’s top legislative and political advisory bodies, which concluded March 11.

In his 2025 government work report, Chinese Premier Li Qiang emphasized the need to boost birth rates, including through child rearing subsidies, nursery services, and childcare services, though the report did not detail specific measures.  

Lei Haichao, director of China’s National Health Commission, also announced plans for draft childcare subsidy measures, but did not specify a timeline. 

China has faced ongoing challenges in stabilizing its birth rates in recent years. Despite several changes to its national family planning policies, including the relaxation of the one-child policy in 2013 and the introduction of a three-child policy in 2021, the country has experienced a steady decline in the number of newborns from 2017 to 2023.

Alongside an aging population and low marriage rates, the number of Chinese women of childbearing age — typically defined as between 15 and 49 years old — decreased by more than 3 million in 2023, further complicating the country’s efforts to stabilize its birth rate.  

Part of the issue is financial, as many women report feeling unable or unwilling to have children due to high child rearing costs and career concerns. 

A study found that the average cost of raising a child to the age of 18 was 485,000 yuan in 2019, or nearly seven times the country’s per capita GDP. 

Cities nationwide have sought to boost births through childcare or child rearing subsidies. These pro-natal policies primarily target families with two or more children, and typically offer additional benefits such as extended maternity leave and housing incentives. 

In August 2023, the eastern tech hub of Hangzhou launched a 20,000-yuan childcare allowance and a 5,000-yuan maternity allowance for couples who have a third child after January 2023.  

Similarly, in October 2024, a remote county in China’s northwestern Gansu province introduced a nearly 100,000-yuan subsidy for families with a third child, paid monthly until the child turns three.

China recorded 9.54 million births in 2024, up 520,000 from the previous year and the first year-over-year rise since 2017.

But experts have cautioned that the last year may have been an anomaly. According to Wang Pingping, director of the Population and Employment Statistics Department at China’s National Bureau of Statistics, the increase in births in 2024 can be attributed to a mix of factors, from the gradual implementation of pro-natal policies to traditional beliefs, including a preference for giving birth during the Year of the Dragon. 

Wang added that the falling number of women of childbearing age will continue to affect China’s birth rate in the coming years.

Additional reporting: Lu Zhiyi.

(Header image: VCG)