China to grant childcare subsidies to spark higher birth rate

China Introduces Nationwide Child‑Raising Subsidy in Face of Demographic Downturn

1.4 B–3 B Gap: UN Demography Forecasts 800 Million by 2100

China’s population dropped for three successive years, with United Nations demography models indicating a potential swing from today’s 1.4 billion to 800 million by 2100.

Nationwide Cash Support: $500 per Child Under Three

• Retroactive from January 1, as announced by CCTV.
• Decision by the ruling Communist Party and State Council.
• Direct cash subsidies aimed at enhancing public wellbeing.

Birth Decline: 9.54 M Last Year, Half of 2016

China recorded just 9.54 million births last year, roughly half of the figure in 2016—the year it ended its one‑child policy, which went on for more than three decades.

Population Loss: 1.39 M Decline, Crown Lost to India 2023

China’s population fell by 1.39 million last year, losing its status as the world’s most populous nation to India in 2023.

Marriage Rates Hit Record Lows

High child‑rearing costs and career concerns have deterred many young couples from starting families.

Local‑Government Subsidy Examples

• Hohhot (Inner Mongolia) – up to 100 k yuan ($14 k) for newborns in families with three or more children; 10 k and 50 k yuan for first and second children.
• Shenyang (Liaoning) – 500 yuan per month until the third child turns three.
• Hangzhou (Zhejiang) – one‑time payment of 25 k yuan for a third child.

Provincial‑Level Administration Coverage

More than 20 provincial‑level administrations now offer childcare subsidies, per official data.

Premier Li Qiang’s Commitment

Premier Li Qiang pledged the provision of childcare subsidies during the government’s annual work report in March.

Fast‑Growing Elder Population Sparks Pension Concerns

Nearly 310 million people aged 60 and over were counted in 2024, adding urgency to debates about the future of China’s pension system.