With China's population set to decline, this county is handing out cash to couples to have babies

Families with three children in Linze county in Gansu province will be able to receive 5,000 yuan ($777) in a lump sum payment when the third child is born, as well as 10,000 yuan a year before the kid reaches three years old, the local government said in a WeChat post this week.

A county in western China will give cash subsidies to couples to have children, the latest push to encourage more births in a country where the population is set to decline in coming years.

China is poised to report its first population decline in five decades following a once-in-a-decade census.  (File Photo / REUTERS)

Families with three children in Linze county in Gansu province will be able to receive 5,000 yuan ($777) in a lump sum payment when the third child is born, as well as 10,000 yuan a year before the kid reaches three years old, the local government said in a WeChat post this week. Families with one or two children can receive smaller subsidies, and the local authority has promised subsidies for schooling fees and home purchases.

Panzhihua city in the southwestern province of Sichuan became the nation’s first city in July to offer cash handouts to encourage childbirth. Authorities are taking more active steps to slow the declining birthrate, making a surprise decision in May to allow all couples to have a third child and promising supportive measures to help parents raise kids.

Read More: Why China Is Struggling to Boost Its Birthrate

Linze’s policy was introduced because the number of permanent residents in the area has shrunk significantly, falling 22,000 in the latest census from the previous one 10 years earlier, local health official Jia Yongming said in a report by Beijing Youth Daily. The county government aims to increase the local population by 9% by 2030 from 2020.worl