China Launches National Childcare Subsidy Amid Falling Birth Rates

On July 28, 2025, China introduced a nationwide childcare subsidy, granting families 3,600 yuan (about $500) annually per child until the age of three. The initiative, funded by the central government, is expected to benefit more than 20 million households. Children born before 2025 will also receive partial support, signaling the state’s intention to reduce the financial strain of raising children.

Officials have described the plan as an “important national livelihood policy,” aiming to ease parenting costs and encourage higher fertility. Yet demographers and economists remain cautious. The amount, they argue, is unlikely to change the broader social and economic pressures deterring young people from having children—ranging from the high cost of education to job insecurity and a slowing economy.

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