Published on: August 16, 2025 7:26 PM
In a bold move to counter its declining birth rate, the Chinese government has announced its first-ever national child subsidy program, offering parents of children under three years old $500 (3,600 yuan) annually.
Despite being the world’s second most populous country, China has one of the lowest birth rates, with the number of newborns declining for the third consecutive year in 2024. Previous measures—including ending the one-child policy and offering incentives—have failed to reverse the trend.
Now, in a fresh policy rollout, the central government aims to support nearly 20 million families by reducing the financial burden of raising children. The subsidy will apply starting this year and will also cover children born between 2022 and 2024, though partially, under limited assistance.
Under the new plan, each child could qualify for up to 10,800 yuan in total aid during their first three years. The program is part of broader efforts to slow China’s rapidly aging population, which poses a long-term economic and social challenge.
Some regions had already piloted similar benefits. In Hohhot, couples with three or more children were offered 100,000 yuan per child, while in Shenyang, families with a third child under age three receive 500 yuan monthly. Beijing also recently urged local governments to plan for free preschool education as an added measure to encourage childbirth.
Raising children in China remains expensive. According to Yuwa Population Research, the average cost of raising one child to age 17 is $75,700, making affordability a key barrier to larger families. The new subsidy aims to ease that burden and help steer China away from a deepening demographic crisis.
