China's Population Shrinks by 3 Million in a Year, Superpower Dream at Risk

• China's population decreased by 3 million to 1.404 billion in 2025, marking the fourth consecutive year of decline.
• Birth rate plummeted, with only 7.92 million babies born in 2025, a 17% drop from the previous year.
• The decades-long 'one-child policy' and high cost of raising children are major factors contributing to the demographic crisis.
• Fertility rate has fallen to an estimated 1.0, significantly below the 2.1 needed for population stability.
• Government incentives like cash subsidies and tax exemptions for childcare, along with controversial measures like VAT on contraceptives, have not reversed the trend.

Why It Matters: China faces a severe demographic crisis with a shrinking population and declining birth rate, threatening its superpower ambitions.