A city in northern China has promised cash rewards in a latest effort to boost birth rate and cope with the ageing society.

Hohhot, capital of north China's Inner Mongolia Autonomous Region, will offer a one-time subsidy of 10,000 yuan (about 1,394 U.S. dollars) for couples having their first child, according to a new regulation released on Thursday.

A second child will receive 10,000 yuan per year until he/she reaches five years old. For the third child or more, the annual subsidy is 10,000 yuan until the child turns 10, with the total amount reaching 100,000 yuan, a relatively high amount compared with other cities.

Yang Zhong, deputy director of the city's health commission, said the measures are aimed at boosting birth rate and spurring population growth. "These policies come as a powerful measure to deal with the current local population development situation," he said.

Data shows that China's population on the mainland stood at 1.40828 billion by the end of 2024, a decrease of 1.39 million from the previous year, representing the third consecutive decline since 2021.

Figures show that Hohhot, about two hours' train ride north of Beijing, has a population of around 3.6 million. The city's birth rate showed a declining trend from 2019 to 2023, Yang said. The birth rate stood at 5.58 births per 1,000 people in 2023, though it slightly picked up in 2024 as more couples were willing to have babies in the Year of Dragon.

Though experts say the result of the birth incentive is still to be tested, many couples have welcomed the policy.

Yang Lixin, 30, who works at a private firm in Hohhot, already has a five-year-old. "The policy made us more assured in making our mind to having a second child. The subsidies can reduce the financial costs, especially for maternity and childcare," she said.