China is introducing an annual childcare subsidy of 3,600 yuan (about $500) until children reach the age of three. In this way, the authorities are trying to stimulate the falling birth rate, Reuters reported, BTA reported.
Few young Chinese are choosing to have children. The high cost of raising and educating children, as well as job insecurity and a slowing economy are among the reasons that deter many young Chinese from getting married and starting a family.
The subsidies will start to be provided from this year, with partial subsidies being granted for children under the age of three born before 2025. The policy is expected to benefit more than 20 million families with young children and infants, Xinhua reported.
The direct cash subsidies will help "reduce the cost of childbirth and child-rearing," the National Health Commission said.
Demographers and economists said that while positive, the amount is likely too small to encourage people to have children, Reuters noted.
China's population is set to decline for a third straight year in 2024, with experts warning of a worsening trend after decades of targeted birth rate reductions under the one-child policy implemented from 1980 to 2015, coupled with rapid urbanization. In the past two years, provinces across the country have begun handing out child-rearing subsidies, but the amounts vary widely – from 1,000 yuan per child to 100,000 yuan, including housing subsidies.
The new policy will be funded by the central government instead of local governments.