China, long known for its vast population, is now facing a dramatic demographic shift. For the fourth consecutive year, the nation’s population has fallen in 2025, a trend accelerated by birth rates hitting a record low. Last year alone, China saw its population dip by 3.39 million, bringing the total down to 1.4 billion – a faster decline than the year before.
The numbers paint a stark picture: for every 1,000 people, only 5.63 babies were born, the lowest since 1959. At the same time, the death rate climbed to its highest since 1968, reaching 8.04 per 1,000 people. This means fewer new lives are starting, while more older lives are ending, rapidly shrinking the country’s workforce and consumer base.
Beijing has been in a desperate scramble to reverse this trend. After famously scrapping the one-child policy in 2016 (moving to a two-child, then a three-child policy in 2021), the government has introduced various incentives. These include offering $500 for parents of young children and providing baby bonuses and extended maternity leave in several provinces. Yet, these efforts haven’t been enough to persuade more couples to have children. China’s fertility rate now stands at an incredibly low one birth per woman, a challenge shared by neighboring countries like South Korea and Singapore.
This demographic challenge isn’t just about numbers; it has serious economic and social repercussions. A smaller workforce weakens the economy and reduces consumer spending. With fewer young people, more elderly citizens are left reliant on government support, straining social systems. China is now navigating a future with an aging population and fewer hands to power its economic engine.
