• China launches a national childcare subsidy of 3,600 yuan per child under three.
• The initiative aims to counter declining birth rates and support families.
• Over 20 million families are expected to benefit from the subsidy scheme.
• The population has fallen for three consecutive years, raising demographic concerns.
• Subsidies retroactively apply to children born from 2022 to 2025.

China has rolled out an annual childcare subsidy of 3,600 yuan (approximately $500) for each child under the age of three, marking its first nationwide effort to address a significant demographic crisis. This initiative comes in response to a persistent decline in birth rates, attributed to various factors including high childcare costs and economic uncertainties, which have discouraged many young couples from starting families, according to SCMP, Reuters, and BBC.

The scheme is expected to benefit more than 20 million families and will provide up to a total of 10,800 yuan per child for those born after January 1, 2025. The government has aimed to implement a nationwide approach to subsidy distribution instead of relying on local initiatives, which have varied significantly across provinces, according to TRT Global and Reuters.

Experts caution that while the subsidies represent a substantial initiative to alleviate the financial burden of raising children, they may not significantly alter the declining birth rate trend. Previous childcare support measures across various provinces have had mixed outcomes, and the broader economic context remains challenging, according to SCMP, BBC, and TRT Global.

As of the end of 2024, China's total population fell for a third consecutive year, exacerbating demographic concerns as the number of elderly individuals continues to rise significantly. Authorities view the subsidy program as critical to countering the projected challenges of an aging population, which is expected to consist of approximately 310 million individuals aged 60 and above by that time, according to Reuters and SCMP.