Under the new policy, families can receive subsidies totaling up to 10,800 yuan for each child, retroactively applied from the beginning of 2024. This move is expected to revitalize interest in childbirth during a time when China’s population is aging rapidly and shrinking, with 9.54 million births reported in 2024 alone. According to research, raising a child to the age of 17 costs about $75,700 in China, making it one of the most expensive nations for child-rearing. As part of its broader strategy, Beijing has also encouraged local governments to implement free preschool education to further support families.
China Implements $1,500 Annual Subsidy to Encourage Birth Rates
China Implements $1,500 Annual Subsidy to Encourage Birth Rates
In an unprecedented move, China's government is offering financial incentives to parents in an effort to combat declining birth rates amidst a demographic crisis.
China's declining birthrate has prompted the government to introduce its first nationwide subsidy, offering parents 3,600 yuan ($500) per year for each child under three. This initiative aims to alleviate the financial burden of raising children, benefiting around 20 million families, according to state media. Despite the abolishment of the one-child policy nearly a decade ago, the country has struggled with its birth rates, which continued to decline even after local governments initiated various monetary rewards for larger families.
