Chinese authorities unveiled a nationwide childcare subsidy scheme on July 28, 2025, aimed at reducing the financial strain on families with young children and addressing the country’s declining birth rate. Starting January 1, eligible families will receive 3,600 yuan per child annually until the child turns three, including first, second and third children.
Central government allocated around 90 billion yuan for this initiative in 2025, funding more than 20 million households nationwide. Experts note this marks the first time China has rolled out a large‑scale, direct cash transfer program to the public.
What That Means for Families
Families with children born before 2025 and still under three can apply for prorated benefits. Local authorities are also allowed to top up the national subsidy if budgets allow. Parents or guardians may apply online through a unified national system linked to platforms like WeChat and Alipay. Offline applications will remain available for households without reliable internet access. Officials promise full access to the program by August 31, with rollout starting in late August at provincial and township levels. Applicants need to submit minimal documents such as birth certificate and household registration, with information sharing across departments built in to streamline the process.
Annual payment of 3,600 yuan equates to roughly US$500. Though modest, it provides tangible relief for childcare costs in urban and rural settings alike. The subsidy may also help drive household spending, supporting consumer sectors related to baby products and childcare services.
Still, analysts caution that without broader reforms like affordable childcare infrastructure, paid parental leave, and workplace protections birth rates may not respond significantly to cash incentives alone. As China continues adjusting fertility‑friendly policy, this cash subsidy is a first step in a broader package that includes plans to waive or reduce preschool fees for kindergartens starting the next school term.
By combining financial incentives with broader social policy shifts, China aims both to ease day‑to‑day burdens for new parents and to begin reshaping a more family‑friendly economic environment.
