China is to offer subsidies for children of up to 10,800 yuan (US$1,543) over three years to boost the declining birthrate and support parents with childcare costs.
The State Council announced the childcare subsidy on July 28, which is to be applied retroactively from January 1, 2025. All children born after that date will receive a subsidy of 300 yuan (US$43) a month up to the age of 3. Children who were born before the start date are also eligible for the monthly subsidy until they are 3, but they will not get the whole amount. According to the Ministry of Finance, the government has set aside 90 billion yuan (US$12.5b) for the subsidies this year.
After China allowed couples to have a second child in 2016, there was a baby boom, however fertility rates dropped rapidly. In 2024, there were 9.5 million newborns, a sharp decline compared to 17.23 million in 2017.
Experts attribute declining birth rates to changing attitudes toward marriage and birth among younger generations and to the rising costs of raising children, including the high cost of apartments and lack of preschool childcare places.
Also in July, the government announced more assistance with preschool costs. From September 2025, all children attending public preschools will be exempt from care and education fees in the last year of kindergarten, the start of a phased introduction of free preschool.
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