China is offering parents 3,600 yuan ($500) a year for each child under the age of three in the first national government subsidy aimed at boosting the birth rate, the BBC reported.
The country's birth rate continues to fall, even after the ruling Communist Party repealed its controversial one-child policy almost a decade ago. According to state media, the subsidies will help about 20 million families with the costs of raising children.
The scheme will offer parents a total of up to 10,800 yuan per child. The policy will be applied retroactively from the beginning of this year. Families with children born between 2022 and 2024 can also apply for subsidies. The measure is the result of local authorities' efforts to increase the birth rate in China.
In March 2025, Hohhot, a city in the northern region of China, began offering its residents up to 100,000 yuan per baby. The scheme only applied to couples with at least three children. In Shenyang, a city northeast of Beijing, they are offering 500 yuan per month to local families with a third child under the age of three. Earlier this month, Beijing also urged local authorities to draw up plans to introduce free preschool education.
The country is among the most expensive in the world to raise children. Raising a child up to the age of 17 in China costs an average of $75,700.
In January 2025 China's population has shrunk for the third consecutive year in 2024, according to the latest figures. Last year, 9.54 million babies were born in the country. The country's population of 1.4 billion is aging rapidly, further fueling demographic concerns.