China has implemented a 13% Value-Added Tax (VAT) on contraceptives, including condoms and birth control pills, effective January 1, 2026, ending a three-decade-long exemption. This policy reversal marks a significant shift from China's previous stance, where contraception was actively promoted under the strict one-child policy, which was formally abolished in 2016. The move comes as Beijing intensifies efforts to counter a severe demographic crisis characterized by a rapidly aging population, a shrinking workforce, and consistently declining birth rates. In 2024, China recorded approximately 9.54 million births, roughly half the number seen in 2016, and its population has been declining for three consecutive years. The contraceptive tax is introduced alongside a package of other "fertility-friendly" measures aimed at encouraging childbirth. These include VAT exemptions for childcare services, elderly care, and marriage-related services, as well as annual childcare subsidies and extended parental leave. However, the policy has met with widespread criticism and ridicule both within China and internationally. Experts argue that the tax is largely symbolic and unlikely to significantly influence birth rates, as the prohibitive costs of raising children, coupled with changing social attitudes and job uncertainties, remain major deterrents for young couples. Additionally, public health concerns have been raised, with warnings that higher contraceptive prices could lead to an increase in unintended pregnancies and the spread of sexually transmitted infections, particularly among lower-income groups. The policy underscores the Chinese leadership's, including President Xi Jinping's, deep concern over demographic trends and their long-term impact on economic stability, with fears that China could "get old before it gets rich". India has recently surpassed China as the world's most populous country, highlighting the stark demographic divergence between the two Asian giants.