FX.co ★ China Rolls Out Cash Aid for Families to Boost Birth Rate

On Monday, China implemented a nationwide childcare subsidy of CNY 3,600 annually for children under the age of three, commencing this year. This initiative is part of the country's strategy to address its declining birth rate. Described as "an important national livelihood policy" by the National Health Commission, the direct cash payments aim to alleviate the financial burden of childbirth and parenting. Families with children born before 2025 will qualify for partial subsidies. According to Xinhua News, this program is projected to benefit over 20 million households. An increasing number of young Chinese are opting not to marry or have children due to high childcare and education costs, job insecurity, and a slowing economy. In 2024, China's population decreased for the third consecutive year, a situation exacerbated by decades of low fertility rates following the one-child policy and rapid urbanization. Several provinces have already implemented local subsidies ranging from CNY 1,000 to CNY 100,000, including housing incentives.