China Launches National Childcare Subsidy to Boost Birth Rate

In a bid to combat its declining birth rate, China introduced an annual childcare subsidy of 3,600 yuan (approximately $502) for children under three years old. This move is part of the country's efforts to alleviate financial burdens on families and stimulate population growth.

The subsidy plan comes amid concerns about the high costs of childcare and education, job instability, and a sluggish economy, which have discouraged many young Chinese from starting families. Official sources cited that this policy could impact over 20 million families, providing direct cash support to reduce the cost of raising children.

Experts emphasize the need for more comprehensive structural reforms, such as affordable childcare, parental leave, and job security for women, to significantly raise fertility rates. Despite these efforts, China faces a demographic challenge with its aging population and the anticipated retirement of approximately 300 million people in the coming decade.

(With inputs from agencies.)