China is taking bold steps to confront its deepening demographic crisis, as announced during the National People’s Congress (NPC) meeting in Beijing today. With its population declining for the third straight year in 2024 and the elderly population surging, the government is rolling out policies to support both its aging citizens and its shrinking younger generation. Premier Li Qiang’s annual work report outlined plans to expand elderly care services, particularly in rural areas, and introduce measures to encourage higher birth rates, signaling a proactive response to a looming economic and social challenge.

The number of Chinese aged 60 and older is expected to exceed 400 million by 2035—a 40% jump—equivalent to the combined populations of the U.S. and Britain. To ease the strain on pension systems and healthcare, China will raise basic old-age benefits for rural and non-working urban residents by 20 yuan monthly and increase retirees’ pensions modestly. The retirement age, recently adjusted to 63 for men, 58 for white-collar women, and 55 for blue-collar women as of January 1, 2025, will be phased in over 15 years. These reforms aim to bolster a workforce diminished by decades of the one-child policy (1980–2015).

On the birth rate front, China is tackling a record low marriage rate and a 2024 population drop of 1.39 million. New policies include childcare subsidies, free preschool education, and enhanced support for rural children and pregnant women. While details remain sparse, the goal is clear: reverse a fertility decline that threatens long-term economic stability. With marriages down one-fifth in 2024, the government hopes financial incentives and improved services will spur family growth.