China will start charging a 13% sales tax on contraceptives like condoms and birth control pills from January 1. At the same time, childcare services will be free from value added tax (VAT). This is part of a new tax system to boost birth rates in the world’s second-largest economy. China is also exempting marriage-related services and elderly care from VAT. The government has extended parental leave and offered cash incentives to encourage more babies. The country faces a shrinking population for three years running. Official data shows that only 9.54 million babies were born in 2024, about half the number from a decade ago. This sharp drop worries Beijing. However, the tax on contraceptives is causing concern. People fear it may increase unwanted pregnancies and HIV infections. Many joked on social media about stocking condoms before prices rise. Some feel that a higher condom price won’t make them want children. "People can tell the difference between the price of a condom and that of raising a child," said one user. China is known as an expensive place to raise children. A 2024 study by the YuWa Population Research Institute noted high school fees and work-parenting struggles push parents to limit kids. Economic slowdowns and property crises add to the stress on families, especially young ones. Some people, like 36-year-old Daniel Luo from Henan province, said the tax rise on condoms is small and won’t change their habits. But others worry poorer people might take risks due to the higher cost. Experts are divided on the tax’s impact. Demographer Yi Fuxian says the government seems more interested in collecting taxes amid an economic slump than truly raising birth rates. China’s VAT revenue is huge, making up 40% of tax income last year. Henrietta Levin from the Center for Strategic and International Studies calls the condom tax "symbolic." She warns that some government policies might feel too intrusive, hurting their goal. Reports of officials asking women about menstrual cycles have already damaged trust. Critics say China’s male-led government misses major social changes causing low birth rates. Problems include tough childcare, less marriage, and young people avoiding deep relationships. Luo points out that rising sales of sex toys show people prefer comfort over complex human bonds today. "Young people face more stress than 20 years ago," he said. "Materially better off, but expectations are much higher. Everyone's just exhausted."