China has launched a nationwide childcare subsidy program starting this year to support families and encourage childbirth amid demographic challenges like a declining birth rate and an aging population. Families will receive 3,600 yuan (about $503) annually for each child under three years old. These subsidies are tax-exempt and will not affect eligibility for other social assistance programs.
The policy aims to benefit over 20 million families yearly and is designed to be inclusive, providing support from the birth of the first child onward. Experts highlight the program’s role in reducing childcare burdens and promoting societal respect for raising children. Local governments can also create additional fertility support policies tailored to their regions.
Several cities have piloted similar subsidy schemes with varying amounts, such as Hohhot’s substantial one-time and ongoing subsidies and Shenyang’s monthly payments for third children. Some of these local programs have helped stabilize or increase birth rates, like in Panzhihua and Tianmen.
Experts stress that childcare subsidies should be part of a broader package of family support measures to be effective, acknowledging regional differences across China.
Credit: CGTN
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