China relaxed its controversial one child policy in 2016, permitting couples to have two children amid deepening demographic crisis of shrinking workforce and ageing population in the world's second largest economy.
The numbers collected from hospitals showed 17.58 million babies were born in China, the National Health and Family Planning Commission (NHFPC) said.
Figures provided by the NHFPC earlier showed that 18.5 million babies were born in hospital in 2016, the highest since 2000.
Surveys show that financial, career and childcare concerns are the main reasons that families are hesitant to have a second child, state-run Xinhua news agency reported.
Over 50 per cent of the total 17.58 million babies born in China last year were second children in the family, it said.
China's population is 1.4 billion, the largest of any country in the world.