China Unveils Initiative to Combat Falling Birthrates
(MENAFN) China has introduced its inaugural nationwide childcare subsidy, granting families an annual sum of 3,600 yuan (about $500) for every child under three years old. This initiative, revealed on Monday, forms part of a sweeping government strategy to address the country’s persistently low birthrate and ongoing demographic decline.
This policy represents Beijing’s newest effort to reverse a historic population downturn. After seven straight years of population decline, China saw a slight recovery in 2024. The shrinking population results from a sharp drop in births, an aging populace, and increasing economic uncertainties. In recent years, the government has implemented various supportive measures such as tax incentives, extended parental leave, and enhanced childcare assistance.
Starting this year, the program is projected to assist more than 20 million families annually, according to the Chinese National Health Commission. Families will receive the subsidy each year until their child reaches age three. The payment covers all children, regardless of birth order, and will be exempt from income tax. Additionally, it will not affect eligibility for other social welfare programs by being excluded from household income calculations.
This move signals a notable departure from decades of stringent family planning rules. Since the abolition of the one-child policy in 2015—first replaced by a two-child limit and later expanded to three—the birthrate has continued its downward trajectory. Though 2024 saw a modest uptick with approximately 9.5 million births, this number remains nearly 50% lower than 2017 levels. Official statistics highlight a continuous decline throughout the early 2020s, with 2020 recording the lowest birth numbers in over 40 years.
Despite expanding government support, many young Chinese are hesitant to have children. Experts attribute this reluctance to economic pressures, soaring housing and education expenses, job insecurity, demanding work schedules, and evolving social attitudes, especially among women. Additional factors influencing fertility decline include urbanization, higher education levels, and the lingering psychological impact of the one-child policy, all contributing to shifting perspectives on marriage and parenthood.
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