The authorities are offering annual payments of $500 to reverse the declining population

China has unveiled its first nationwide childcare subsidy program, offering families an annual payment of 3,600 yuan (approximately $500) for every child under the age of three. The measure, announced on Monday, is part of a broader government effort to curb the country's persistently low birthrate and long-term demographic decline.

The policy marks the latest attempt by Beijing to counteract a historic demographic downturn. China's population declined for seven consecutive years before registering a modest rebound in 2024. The slide has been driven by a steep drop in births, a rapidly aging society, and growing economic uncertainty. In response, authorities have rolled out a series of measures in recent years, including tax breaks, parental leave extensions, and childcare support.

The new program will begin this year and is expected to benefit over 20 million families each year, according to the Chinese National Health Commission. The subsidy will be paid annually until a child turns three and will apply to all children regardless of birth order. It will be exempt from income tax and will not count toward household income when determining eligibility for other forms of social assistance.

The step reflects a significant policy shift away from decades of strict family planning. China ended its one-child policy in 2015, first allowing two children per family and later raising the limit to three. However, birthrates have continued to decline. Although there was a modest rebound in 2024, when the country recorded around 9.5 million births, the figure remains nearly half of what it was in 2017. Government data shows a steady drop throughout the early 2020s, with 2020 marking the lowest birth total in more than four decades.

Despite growing state support, many young Chinese remain reluctant to have children. Economists and demographers point to financial strain, high housing and education costs, job insecurity, long working hours, and shifting social values, particularly among women, as major factors behind the continued decline in fertility. Urbanization, rising educational attainment, and the lingering psychological legacy of the one-child policy are also cited as factors contributing to shifting cultural attitudes toward marriage and childbearing.

(RT.com)