China's Birth Rate Plummets to Record Low Since 1949, Threatening Economy

• China's birth rate dropped to its lowest since 1949, with 5.6 births per 1,000 people, totaling 7.9 million babies born last year.
• The population decreased by 3.4 million, the largest drop in decades, reaching 1.405 billion.
• This decline is a major setback for President Xi Jinping's efforts to boost fertility through incentives like cash rewards.
• A shrinking workforce and aging population pose significant threats to China's economy and its underfunded pension system.
• The government has introduced pro-natalist policies, including extended parental leave, financial incentives for new parents, and a new 13% VAT on contraceptives.

Why It Matters: China's birth rate hit a historic low, signaling a deepening demographic crisis despite government incentives.