The birth rate fell to 5.63 per 1,000 people, the lowest since the Communist Party's rise to power in 1949, while the death rate climbed to 8.04 per 1,000 people, the highest since 1968, according to the data. The population decreased by 3.39 million, reaching 1.4 billion by the end of 2025, marking a faster decline than the previous year.

Faced with an aging population and a sluggish economy, Beijing has been actively trying to encourage young people to marry and have children. In 2016, the government abandoned its long-standing one-child policy, replacing it with a two-child limit. When this change failed to produce a sustained increase in births, authorities announced in 2021 that they would allow couples to have up to three children.

More recently, China has offered parents 3,600 yuan ($500) for each child under the age of three. Certain provinces are also providing their own baby bonuses, including additional financial support.

The declining birth rate and shrinking population pose significant challenges for China's future economic and social development. A smaller workforce could strain the country's economic growth, while a larger elderly population could put pressure on social security and healthcare systems.