Facing a sharp decline in birth rates, Taiwan’s government has announced a significant increase in financial subsidies for childbirth, particularly for couples undergoing in vitro fertilization (IVF). The subsidy amount is planned to rise to approximately ₹6 lakh (around $6,700), pending cabinet approval. This is almost double the previous subsidy of about $3,330 and roughly five times higher than China’s recent subsidy program.

Details of Taiwan's Childbirth Subsidy Program

• The increased subsidy focuses on IVF treatments, aiming to ease the financial burden on couples seeking assisted reproduction.

• Under the new plan, subsidies for the second to sixth IVF cycles will be equalized to the first cycle’s subsidy, ensuring couples can receive at least $6,700 to support having a child.

• The program expansion is in response to Taiwan’s ongoing fertility challenges, where the birth rate has been steadily declining over the past decade.

• Taiwan’s fertility rate as of 2025 is only about 1.27 births per woman, which is even lower than China’s fertility rate.

• The total population of Taiwan is nearly 2.3 crore (23 million), with over 20% being aged 65 or older, reflecting a rapidly aging society.

China’s Lesser Subsidy and Population Concerns

• China recently introduced a national childbirth subsidy of about ₹1.3 lakh ($500 per year for three years per child).

• Despite relaxing strict birth limits since 2020, China continues to face a declining birth rate and an aging population.

• The lower subsidy amount reflects China’s different policy approach and economic considerations but has raised worries about sustaining population growth and future workforce levels.

Societal Implications for Taiwan

• Taiwan recorded a record low of roughly 1.35 lakh births in 2024, prompting urgent policy measures.

• High marriage ages and delayed parenthood contribute to fertility challenges.

• The subsidy program is part of broader family support initiatives designed to encourage childbirth amid demographic aging.

Geopolitical Context

• Taiwan’s demographic challenges come amid its tense relations with China, which claims Taiwan as its territory.

• Reports from US intelligence suggest potential Chinese attempts to assert control over Taiwan in coming years.

• Meanwhile, Taiwan continues to strengthen defense ties with the US in anticipation of any conflict.

In summary, Taiwan’s substantial increase in childbirth subsidies represents a strong government commitment to reversing demographic decline by providing significant financial support to families, particularly in assisted reproductive technologies. This generous program stands in stark contrast to China’s more modest incentives and reflects Taiwan’s unique social, economic, and geopolitical challenges.

This bold policy move not only aims to boost birth rates but also to support families amid rising costs and prepare Taiwan for an uncertain future demographically and geopolitically.