China’s birth rate dropped to 5.6 per 1,000 people in 2025, the lowest since 1949, with a total population decline of 3.39 million, marking the sharpest decrease since the Mao Zedong era. This is the fourth consecutive year of population decline despite government initiatives like $500 annual subsidies for children born after January 1, 2025, and a 13% value-added tax on contraceptives. The government is focusing on automation and productivity to counter the shrinking workforce, with President Xi Jinping emphasizing a shift in population policy towards quality improvement.
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