Economics
Provider
Research
China introduces nationwide childcare subsidy to curb falling birthrate
Fiona Alston
Aug 01, 2025
Save
China has announced a new national childcare subsidy, offering families financial assistance as part of its efforts to counter a declining birthrate and shrinking workforce.
From January 2025, families will receive 3,600 yuan (AU$502) annually for each child under the age of three. The subsidy applies to all children, regardless of whether they are a first, second or third child, and can be accessed online or through local government offices. According to Xinhua News Agency, the policy is expected to benefit more than 20 million families each year.The initiative adds to previous measures such as tax breaks and expanded access to affordable daycare services, as authorities try to reduce the financial barriers young couples face when considering having children.
China’s birthrate has fallen sharply in recent years, raising concerns about the long-term sustainability of its workforce and economic growth. The country recorded only 9.54 million births in 2024, half the 18.8 million registered in 2016, when the one-child policy was lifted.
The working-age population has also been declining, prompting fears about labour shortages and reduced productivity. United Nations projections suggest that China’s population, currently around 1.4 billion, could fall to 1.3 billion by 2050 and below 800 million by the end of the century.
Marriage rates have also dropped significantly. In 2024, China reported its lowest marriage rate in nearly 50 years, with only 6.11 million couples marrying down from 13.47 million in 2013. As most births occur within marriage, this trend is expected to further reduce birth numbers.
The new subsidy is part of a broader policy push aimed at creating what lawmakers call a “fertility-friendly society.” Proposals under consideration include extended maternity leave, greater financial assistance for pregnant women, and improved childcare services.
While it remains to be seen whether this national subsidy will reverse current trends in China, the measure highlights the government’s recognition that urgent action is required to address one of the most significant demographic challenges facing the world’s second-largest economy.
This article is based on reporting from Bloomberg, via BusinessMirror.
Don’t miss a thing
Related Articles
