China Launches Nationwide Child Subsidy to Boost Birth Rate

China will offer parents 3,600 yuan ($500) annually for each child under three, marking its first nationwide subsidy to tackle declining birth rates. The initiative, benefiting about 20 million families, comes nearly a decade after the end of the one-child policy and will be applied retroactively from January 2024. Families with children born between 2022 and 2024 can claim partial payments, with a maximum of 10,800 yuan per child over three years.

Several cities have already introduced incentives, such as Hohhot’s 100,000 yuan payout for a third child and Shenyang’s 500 yuan monthly allowance. The government is also urging free preschool education.

High child-rearing costs—averaging $75,700 until age 17—remain a key deterrent, according to the YuWa Population Research Institute. Official data shows China’s population declined for the third consecutive year in 2024, with 9.54 million births, underscoring the urgency of reversing its ageing demographic trend.

08-08-2025