 "Tianmen's birth boom: Here's how the city defied China's population decline")
In a remarkable turnaround, Tianmen city in China’s Hubei province has defied the country’s declining birth rate trend with a 17 per cent surge in newborns in 2024. This demographic revival is attributed to a suite of generous cash incentives and benefits for families, according to a report by South China Morning Post (SCMP).
Tianmen, home to approximately 1 million people, welcomed 1,050 more babies in 2024 compared to the previous year. This uptick stands out against a national backdrop of declining births and an ageing population, which are challenges to China’s economic sustainability, the report said.
Robust incentives for families
The city’s success is attributed to strengthened benefits for families, particularly those with three or more children. Families with a third child can receive up to 220,000 yuan in total benefits, which include:
- A 120,000 yuan home purchase coupon
-A one-time cash payment of 3,000 yuan
-A monthly allowance of 1,000 yuan until the child turns three
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Corporate support enhances initiatives
Local companies have also joined the effort. Leading electric vehicle manufacturer Xpeng recently announced a 30,000 yuan cash reward for employees who have a third child. The reward increases for additional children. Xpeng’s founder, He Xiaopeng, said that the company wants its employees to have more kids, and it should help with the costs.
Despite national efforts, results have been mixed. In 2023, China recorded just over 9 million births, the lowest figure since 1949, and a second consecutive year of population decline. However, demographer He Yafu pointed to Tianmen as proof that significant financial incentives can drive change, the report said.
Preliminary data suggests a moderate national uptick in births for 2024, partly influenced by the Year of the Dragon, traditionally seen as auspicious. Hospitals in Guangdong province have reported increases in childbirths, with one facility noting a 23 per cent rise compared to 2023, the SCMP reported.
As China continues to grapple with demographic challenges, the Tianmen model highlights the potential impact of well-designed, substantial incentives in reversing declining birth rates.