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China Launches Nationwide 3,600 Yuan Annual Subsidy for Children Under Three

The policy aims to stabilize an aging population after three years of shrinking births with direct cash support to families.

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Overview

  • Under the nationwide initiative families will receive 3,600 yuan per child born on or after January 1, 2025, each year until the child turns three.
  • The subsidy complements existing local incentives such as cash and housing benefits that have had limited success in reversing the birth decline.
  • China’s annual births plunged to 9.54 million in 2024, half the figure recorded in 2016, marking a third consecutive year of population shrinkage.
  • Demographic modeling by the United Nations forecasts the population could drop to 1.3 billion by 2050 and fall below 800 million by 2100 without stronger uptake.
  • Persistent high child-rearing costs, career pressures on women and evolving social norms are expected to continue dampening fertility despite new subsidies.