China has introduced a nationwide childcare subsidy program aimed at supporting families and encouraging higher birth rates. Effective from January 1, 2025, the program provides an annual subsidy of 3,600 yuan (approximately $500) for each child under the age of three. This initiative is part of broader efforts to alleviate financial burdens on families and address demographic challenges, including a declining population and an aging society. The 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.
In addition to the national program, several local governments have implemented their own measures to encourage childbirth. For instance, Hohhot, the capital of Inner Mongolia, offers a one-time subsidy of 10,000 yuan for the first child, with annual subsidies of 10,000 yuan for the second child until the child reaches five years old. For the third child or more, the annual subsidy is 10,000 yuan until the child turns 10, totaling 100,000 yuan.
These initiatives reflect China's commitment to creating a supportive environment for families and addressing the demographic challenges posed by a declining birth rate and an aging population. The government continues to explore and implement policies aimed at fostering a birth-friendly society and ensuring sustainable socioeconomic growth in the coming decades.