Overview

• Starting Jan. 1, 2025, families will receive an annual 3,600 yuan childcare subsidy for every child under three, with payments applied retroactively for eligible births this year.
• This is China’s first nationwide childcare subsidy, unifying support alongside over 20 provinces that already offer their own birth incentives.
• The measure marks Beijing’s largest direct family-support effort since permitting three children per household and aims to ease steep parenting expenses.
• Economists warn that the modest subsidy is unlikely to boost the birth rate or consumer spending in the near term, though it may pave the way for further fiscal transfers.
• China recorded just 9.54 million births in 2024 and had nearly 310 million residents aged 60 and over last year, raising urgent concerns about future labor supply and pension viability.