China is rolling out its first nationwide child subsidy, offering parents about $500 a year for each child under age 3 in a move to address its declining birth rate. The new policy, which the BBC reports was announced Monday, is expected to support around 20 million families. Parents can receive up to $1,500 per child over three years, and the payments will be retroactive to the start of 2024. Families with children born between 2022 and 2024 qualify for partial benefits. The income is not taxable and isn't counted when determining poverty benefits eligibility, notes the Independent.
This marks a significant shift since the country moved away from its one-child policy nearly a decade ago. Despite the change, the birth rate hasn't rebounded. In 2024, China recorded 9.54 million births—a slight uptick from the previous year, but not enough to reverse an overall population decline now in its third consecutive year.
Local governments have already tested a variety of incentives. For example, Hohhot city has offered as much as 100,000 yuan (about $14,000) per baby for couples with three or more children, while Shenyang city gives monthly stipends to families with a third child. Beijing has taken steps to expand access to preschool education, hoping to further reduce costs for young families.
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Underlying the push is the rising expense of raising children in China, with a China-based think tank estimating the cost through age 17 at roughly $75,700—one of the world's highest levels. At the same time, China's population is aging rapidly, adding urgency to efforts aimed at reversing demographic decline.
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