China has introduced an annual childcare subsidy of 3,600 yuan (around $500) until age three in a bid to increase the country’s low fertility rate. The move aims to alleviate concerns over high childcare costs and job uncertainty, which have discouraged many young Chinese from getting married and starting families.
The new policy is expected to benefit more than 20 million families with toddlers and infants. It is funded by the central government and will be implemented nationwide, starting this year. However, demographers warn that while this measure may provide some relief, sustained structural investment in areas like affordable childcare, parental leave, and job protections for women is crucial to making a lasting impact on fertility rates.
China’s population has been declining consecutively since 2024, with experts citing the country’s one-child policy and rapid urbanization as key factors. The new policy is part of a series of “fertility-friendly” measures introduced by authorities in 2024 to tackle the challenge of an aging population.
Source: https://www.reuters.com/markets/emerging/china-unveils-childcare-subsidies-push-boost-fertility-2025-07-28