The city of Hohhot, capital of Inner Mongolia, has launched a series of childcare subsidies and support measures to encourage childbirth as China grapples with a shrinking population. Among the initiatives is a unique program offering new mothers a free cup of milk every day.

China’s population has been declining for the past three years, with 2024 marking yet another drop. The downturn is largely attributed to decades of restrictive birth policies, including the one-child policy (1980–2015), as well as rapid urbanization and soaring costs of raising children, which have deterred many young couples from having families.

To reverse this trend, over 20 provincial-level administrations have introduced childcare subsidies, according to state-run Xinhua News Agency. The central government has also prioritized boosting birth rates, with Premier Li Qiang announcing new childcare subsidies and free preschool education as part of a broader strategy to address the demographic crisis.

Hohhot’s latest policy includes significant financial support for families:

• First child: One-time payment of 10,000 yuan ($1,382.51)
• Second child: Annual subsidy of 10,000 yuan until the child turns five
• Third child: Annual subsidy of 10,000 yuan until the child turns ten

These payments double the average annual income of local residents, making them a major incentive for prospective parents.

In addition to financial subsidies, Hohhot has introduced the “One Cup of Milk Fertility Care Action”. Under this initiative, new mothers who give birth after March 1 will receive a free cup of milk every day to support maternal health.

Additionally, new mothers will be eligible for a 3,000-yuan ($415) electronic voucher, which can be redeemed at leading dairy companies Yili and China Mengniu Dairy.

Despite lifting birth restrictions in 2021, allowing families to have up to three children, marriage rates in China plunged by 20% in 2024, marking the biggest recorded decline. Authorities are now exploring additional measures to ease the financial burden of child-rearing, including a national childcare subsidy system.

With local governments like Hohhot pioneering these initiatives, China hopes that more young couples will be encouraged to start families, helping to slow the country’s population decline.