China has unveiled a landmark childcare subsidy program offering 3,600 yuan ($503) annually per child under three years old, effective immediately. The initiative aims to alleviate financial pressures on families while addressing the country's demographic challenges.
The tax-exempt subsidies – equivalent to $42 monthly – will benefit over 20 million families yearly. State Council officials confirmed the payments won't affect eligibility for other social assistance programs during Wednesday's upcoming policy briefing.
"This inclusive policy recognizes childcare's social value," said Peking University professor Ma Liang. "It applies to all newborns, not just subsequent children."
China Population and Development Research Center Director He Dan emphasized the program's flexibility: "Local governments can build on this foundation with region-specific measures."
Demographic Balancing Act
The move comes as China confronts dual pressures of declining births and rapid aging. After seven consecutive years of falling birth rates, 2024 saw modest recovery while the 60+ population reached 310 million.
Local governments have tested similar programs since 2021, with some regions offering housing benefits and extended parental leave. The national rollout standardizes support ahead of anticipated population strategy updates.
