China has launched a nationwide childcare subsidy program starting in 2025, aiming to support families and encourage childbirth. The program offers families 3,600 yuan per year for each child under the age of three. These subsidies are exempt from individual income tax and are not counted as household or individual income when identifying assistance recipients, such as those receiving subsistence allowances or classified as living in extreme difficulty.
This initiative is part of China's broader efforts to address demographic challenges, including a declining birth rate and an aging population. The government has also announced plans to provide childcare subsidies, make preschool education free, and raise old age benefits for rural and non-working urban residents. Additionally, there are proposals to gradually raise the statutory retirement age and expand elderly care services. These measures aim to boost birth rates and support families in raising children.
Local governments have been implementing various childcare subsidy policies. For example, Hohhot, the capital of Inner Mongolia, announced a one-time subsidy of 10,000 yuan for families having their first child, and annual subsidies of 10,000 yuan for second and third children until they reach the age of five and ten, respectively. Other regions, such as Shenyang and Ningxia, have also introduced their own subsidy programs to encourage childbirth and alleviate family burdens.
These efforts reflect China's commitment to creating a supportive environment for families and addressing demographic challenges through comprehensive policy measures.