China interduces new strategy to increase birthrates
(MENAFN) China has introduced its first nationwide childcare subsidy program, offering families 3,600 yuan (roughly $500) per year for each child under the age of three. Announced on Monday, the initiative is part of a broader strategy to reverse the country's declining birthrate and address long-term demographic challenges.
This policy represents the latest move by Beijing to address a population crisis characterized by a shrinking number of births, an aging population, and increasing economic pressures. Although China saw a slight population rebound in 2024 after seven years of decline, the overall trend remains troubling. To counter this, authorities have implemented a range of supportive policies, such as tax incentives, longer parental leave, and expanded childcare services.
The new subsidy, which will begin this year, is expected to benefit over 20 million families annually, according to the National Health Commission. Payments will continue until each child turns three, regardless of the child's birth order. Importantly, the subsidy will be exempt from income tax and will not affect eligibility for other government benefits.
This development marks a significant departure from China's decades-long family planning restrictions. Since ending its one-child policy in 2015, the government has gradually raised the birth limit, first to two children and later to three. Nevertheless, birthrates have remained low. In 2024, approximately 9.5 million births were recorded—up slightly from previous years but still nearly half of the 2017 total.
Despite increased support from the state, many young Chinese are still hesitant to start families. Experts cite financial burdens, high living and education costs, job instability, long work hours, and evolving social attitudes—especially among women—as key reasons behind the ongoing reluctance. Broader trends such as urbanization, higher education levels, and lingering effects of the one-child policy continue to reshape perspectives on family life and childbearing.
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