Parents in China are now eligible for an annual subsidy of 3,600 yuan (approximately $500) for each child under the age of three, marking the government's most significant effort to incentivize childbirth in a country witnessing a continuous decline in birth rates. This initiative, announced on Monday, will assist about 20 million families, aiming to alleviate the financial burden of raising children amid concerns over the nation's demographic future.
The subsidy aligns with previous measures adopted by various provinces, which have also implemented financial incentives to stimulate higher birth rates. Notably, the revealed program will allow parents retroactively to apply for partial financial assistance for children born between 2022 and 2024. In certain regions, such as Hohhot, families can receive up to 100,000 yuan for their third child, while Shenyang provides monthly allowances for families with younger children.
Despite the abolition of the one-child policy a decade ago, China's fertility rate continues to plummet. According to findings by the China-based YuWa Population Research Institute, the cost of raising a child until the age of 17 can reach an astounding $75,700, making it one of the most expensive countries in the world to start a family. Recent statistics report that in 2024, a mere 9.54 million babies were born, further fueling demographic anxieties in a nation with a population of approximately 1.4 billion people that is rapidly aging.
To address this growing concern, the Chinese government is simultaneously advocating for local administrations to develop plans for free preschool education. While these initiatives aim to encourage higher birth rates, China faces an uphill battle against the societal and economic challenges parents encounter when deciding to have children.
