On July 28, Chinese state media announced that the government plans to introduce a childcare subsidy of 3,600 yuan (approximately USD 500) per year for children under the age of three, starting from January 1, 2025. Eligible families will be able to receive a total of 10,800 yuan over three years. The subsidy will also be retroactively applied to children born since January 2022, although the amount for those cases will be lower.
China’s current population is around 1.4 billion, but it has been declining for three consecutive years. In 2024 alone, the population dropped by 1.39 million. In 2023, India overtook China to become the world’s most populous country. According to UN projections, China’s population could fall to under 800 million by the year 2100.
According to AFP, the aim of the new policy is to ease the financial burden of raising and educating children and to encourage more young people to have children. However, scholars argue that while the subsidy may relieve some pressure for families, it is unlikely to reverse the long-term trend of population decline.
Experts believe this policy is more of a short-term measure to boost consumption rather than a comprehensive solution to the fertility crisis. To truly improve birth rates, they say, broader reforms are needed—such as expanding access to childcare services and reducing workplace pressures on women, particularly working mothers.