China Rolls Out Cash Aid for Families to Boost Birth Rate

China launched on Monday a national childcare subsidy of CNY 3,600 per year for children under age three, starting this year, as part of efforts to combat a declining birth rate. “This is an important national livelihood policy,” said the National Health Commission, adding that direct cash payments aim to “reduce the cost of family childbirth and parenting.” Families with children born before 2025 will receive partial subsidies, and the program is expected to benefit over 20 million households, according to Xinhua News. Fewer young Chinese are choosing to marry or have children, citing high childcare and education costs, job uncertainty, and a slowing economy. China’s population shrank for a third straight year in 2024, a trend worsened by decades of low fertility following the one-child policy and rapid urbanisation. Several provinces have already introduced local subsidies, ranging from CNY 1,000 to CNY 100,000, including housing incentives.