Chongqing –  China will offer its first national childcare subsidy from January 1, 2025, granting 3,600 yuan (about 495 USD) per year for each child under three to ease family costs and boost births. An expert said its impact remains uncertain.

In an August 1 interview with Bridging News, Luo Wei, deputy director and associate researcher of the Institute of Law and Sociology at the Chongqing Academy of Social Sciences, said the policy marks a shift from scattered local efforts to a unified national system, improving fairness and strengthening family support.

At a July 30 national press conference, Guo Yanhong, deputy director of China’s National Health Commission, called the childcare subsidies the first large-scale, universal, direct cash support for livelihood security since the People's Republic of China’s founding. The central government has earmarked about 90 billion yuan to fund the program through fiscal transfer payments.

A press conference on childcare subsidy system and fertility support measures is held by the State Council Information Office (SCIO) in Beijing, capital of China, July 30, 2025. (Xinhua/Li Xin)

Under the new policy, subsidies will be paid annually until the child turns three. Families with one, two, or three children could receive a total of up to 10,800 yuan (about 1,498 USD), 21,600 yuan (about 2,996 USD), and 32,400 yuan (about 4,494 USD), respectively. Applications for the subsidy are expected to open by the end of August.

The move follows years of local pilots launched after China’s three-child policy in 2021, which tested longer maternity leave, childcare service vouchers, and local subsidies. Luo said lessons from these trials laid the foundation for a nationwide rollout.

However, experts caution that the subsidy alone may not reverse the ongoing decline in fertility rates. "Financial support is just one part of the equation," said Luo. "Young people today face intense social and economic pressures—from high living costs to long work hours—which all contribute to their hesitation in having children."

"It will take time to see how effective the policy truly is," Luo added. "Beyond childcare subsidies, complementary measures like maternity leave policies, childcare services, and preschool education need to work together to support long-term, balanced population growth."

Childcare is "more than money"

Childcare subsidies are a widely adopted measure around the world to support fertility and ease the financial burden of raising children. Many governments view such subsidies as a key component of broader family support systems aimed at improving work-life balance, reducing economic pressure on parents, and encouraging higher birth rates. 

Internationally, childcare subsidy levels vary. In Japan, families receive 15,000 yen (about 96 USD) per month per child; in France, the monthly subsidy is 96.65 euros (about 105 USD), and in Germany, it is 219 euros (about 237 USD). Nordic countries offer slightly higher monthly allowances, such as Sweden's 1,250 kronor (about 115 USD) and Norway's 1,766 kroner (about 164 USD). These subsidies typically account for 2.4% to 7.2% of per capita GDP.

A woman and her child have fun at a park in Zaozhuang, east China's Shandong Province, June 1, 2025. (Photo by Sun Zhongzhe/Xinhua)

In comparison, China's annual subsidy of 3,600 yuan represents over 3.5% of its per capita GDP, positioning it within the international range. Yet Luo noted, "Implementation outcomes have varied across countries." 

For instance, in Europe, subsidies helped stabilize birth rates to some extent, especially when paired with robust childcare services and gender-equal parental leave. In contrast, countries like Japan and South Korea have seen limited impact due to persistent social pressures and rigid work cultures.

In China, regional disparities also complicate implementation. "The national policy offers a baseline," Luo said. "Wealthier regions may enhance support, while central funding will cover less-developed areas. This approach could yield stronger results in economically weaker regions, where the relative impact of subsidies is more pronounced."

In Chongqing, the city is increasing support for childbirth and child-rearing by expanding access to affordable childcare. Key measures include developing community-based centers, employer-run facilities, and combined childcare and preschool services. By 2025, Chongqing aims to provide 4.5 nursery spots per 1,000 residents under age three, with affordable childcare available in 60% of urban communities within three years.

Despite the policy's significance, Luo remained cautious. "The direction of fertility support is clear, but the rapid decline in birth rates and the rising burden of an aging population remain serious challenges," he said.

The success of China's new childcare subsidy will hinge not just on financial support, but on how well it integrates with broader policies such as parental leave, childcare services, and early education. 

"In the end, it's not only about the money—it's about making effective investments in people," Luo noted. "The long-term impact of this policy will depend on how efficiently resources are allocated and how well these measures work together to support families and stabilize population growth."