How China is tackling declining marriage rates with cash incentives to tie the knot

NEW DELHI: As China grapples with a sharp decline in marriage rates, local authorities are offering cash rewards to encourage couples to tie the knot. The move comes as the country faces a demographic challenge, with the population shrinking for the third consecutive year in 2024. Cities across the country, including Luliang in northern Shanxi province, are offering cash rewards and subsidies in an attempt to reverse the trend.
Moments after registering their marriage, Zhang Gang and Weng Linbin posed in front of a red backdrop adorned with a Chinese government emblem, fanning out the 1,500 yuan ($205) they had received as an incentive to wed. Zhang's home city of Luliang is among several places rolling out such schemes, with officials hoping these measures will help address China’s shrinking population.
According to the Council on Foreign Relations, “Numbers of marriages in China dropped to 6.1 million in 2024, an exceptionally steep fall of 20.5 percent from the prior year. The continuing decline in marriage rates likely presages yet further declines in birth rates, intensifying China’s demographic headwinds.”
The drop follows a broader trend, with the Council on Foreign Relations report noting that “even accounting for statistical irregularities, the declines in China’s marriage rates are extreme. The 2024 numbers reflect an 11 percent decrease from 2022 and a stunning 55 percent drop from the peak of 13.47 million marriages recorded in 2013.”
In Luliang, the 1,500-yuan incentive is equivalent to half a month's average wage for urban workers and more than a full month’s salary for many in rural areas. Authorities there are also offering subsidies for newborns—2,000 yuan for the first child, 5,000 for the second, and 8,000 for the third—along with medical insurance contributions.
Despite these efforts, many young people remain hesitant. An official at Luliang’s marriage registry told AFP that since New Year's Day, over 400 couples had taken advantage of the cash offer. However, several couples admitted they were planning to marry later but brought their plans forward to benefit from the incentive.
The Council on Foreign Relations attributes China’s declining marriage rates to multiple factors, including “a declining population of young adults, a darkening economic outlook for recent graduates, changing attitudes towards marriage, and escalating gender polarization between men and women.”
Matchmakers like Feng Yuping say the issue goes beyond financial incentives. “A man working at a state-owned enterprise might have a bachelor's degree, but he won't even look at a girl with a master's degree in the civil service,” she said. Many women, despite being highly educated and financially stable, struggle to find partners due to societal expectations.
China’s aging population remains a major concern for Beijing, with several provinces experimenting with financial incentives to reverse the decline in birth rates. For instance, Shangyou county in Jiangxi province has introduced cash rewards for families having a second or third child, while Tianmen in Hubei province has offered subsidies of up to 165,000 yuan for families with three children.
However, experts remain sceptical about whether financial rewards alone can change social attitudes. “The cost of marriage for young people is indeed very high, and it is a factor,” Zhang said. “However, I believe that as long as young people are in love, they will inevitably walk down the aisle together.”