Child artists paint green trees by hand in a community in Urumqi, Northwest China's Xinjiang Uygur Autonomous Region, on March 12, 2025. Photo: VCG

China has introduced a nationwide childcare subsidy program - the first large-scale, universal, and direct cash subsidy for public welfare distributed to the public since the founding of the People's Republic of China - with a preliminary budget of around 90 billion yuan ($12.54 billion) allocated for this year, an official said at a press conference on Wednesday. Experts said the strong policy support is a concrete effort and a crucial step in terms of fostering a birth-friendly society.

The latest move follows the country's recent introduction of a nationwide childcare subsidy program, which sets a standard of 3,600 yuan per year for each child under the age of three, and is expected to benefit more than 20 million families each year.

Guo Yanhong, deputy head of the National Health Commission (NHC), said the childcare subsidy is aimed at easing the financial burden of raising children for families. As a targeted economic policy supporting childbirth, the subsidy will be distributed through fiscal funding.

Subsidy applications will be gradually rolled out across China beginning late August, with full access expected by August 31, said Wang Haidong, an official with the NHC at the press conference held by the State Council Information Office on Wednesday.

The applicant for the childcare subsidy is one of the infant's parents or other guardian, who can apply online through the childcare subsidy information management system or offline, said Wang. 

The central government will also establish a transfer payment program under shared fiscal authority titled "childcare subsidy fund," with a preliminary budget of around 90 billion yuan allocated for this year, Guo Yang, an official at the Ministry of Finance, said at the conference. 

For funds needed to distribute the national baseline standard subsidy, the central government will provide subsidies to local governments based on a set proportion, covering approximately 90 percent of the total cost, Guo Yang said. 

As a large developing country still in the primary stage of socialism, China's policy design takes into account both population development trends and the country's socioeconomic development level, and the subsidy's scope and standards are determined reasonably to ensure the policy is fiscally affordable and sustainable, according to Guo Yanhong, deputy head of the NHC, at the conference.

The funding arrangements for this childcare subsidy indicate strong policy support, reflecting the central government's high priority on optimizing population structure and alleviating family burdens related to childbirth and child-rearing, Li Changan, a professor at the Academy of China Open Economy Studies at the University of International Business and Economics, told the Global Times on Wednesday.

The inclusive childcare subsidy reflects a shift to direct financial support for families, highlighting the country's new focus on encouraging childbirth and putting people's well-being first, Huang Wenzheng, a demography expert and senior researcher at the Center for China and Globalization, told the Global Times on Wednesday.

Efforts for birth-friendly society

According to the Government Work Report unveiled in March, China will formulate policies on boosting birth rates, and provide childcare subsidies, the Xinhua News Agency reported. 

The country will also vigorously develop integrated nursery and childcare services, and increase public-interest childcare services, read the report.

Chinese experts said the introduction of the nationwide childcare subsidy program is an important step as it is a widespread measure that benefits the public by alleviating the high costs associated with childbirth and child-rearing. 

It sends a positive signal that raising children is a shared responsibility of families, society, and the nation, promoting the orientation of a birth-friendly society, said Yang Fan, a professor from School of Population and Health of Renmin University of China.

Some "new mothers" who spoke with the Global Times said they welcomed the new policy, and praised the government's tangible efforts to encourage childbirth. 

"The subsidies allow expectant parents to better prepare for baby's arrival, such as purchasing new clothes and baby essentials," a woman surnamed Zheng, who is from North China's Hebei Province and is due to give birth in September this year, told the Global Times.

Zheng added that given the beneficial policies, she and her family is considering to have a second kid. 

According to Guo Yanhong, the subsidy is available to all eligible children, regardless of whether they live in urban or rural areas, their ethnicity, region, or whether they are the first, second, or third child in the family. Application process for the subsidy has also been streamlined to reduce paperwork and optimize procedures.

"The country is in the process of building a birth-friendly society, with many local policies being explored. An increasing number of these local policies are being elevated to the national level, starting with child subsidies," Yang said.

More policy packages are expected to emerge in the future, Yang noted. 

Besides, multiple measures have been taken to reduce the costs of childbirth, child-rearing, and education for the public, according to the press conference. These include incorporating the expenses of caring for children under the age of three into the special additional deductions for individual income tax and raising the deduction standard to 2,000 yuan per child per month, CCTV reported Wednesday.

Moreover, the maternity leave system has been further improved. Provinces have generally extended maternity leave to 158 days or more. Additionally, around 15 days of paternity leave for spouses and 5 to 20 days of parental leave have been established across the country, according to the press conference. 

Yang said a package of multi-faceted policies collaborating with each other would be extremely necessary with the aim to build a birth-friendly society, and would become a future trend. 

In the future, continued efforts are needed in areas such as housing, education, healthcare, and parental leave systems to build a more comprehensive fertility support system, Huang told the Global Times.

When asked on whether increased family subsidies and other assistance might be possible in the future, Wang Haidong, the official with the NHC, said the population trends are influenced by many factors, and effects of fertility support policies like childcare subsidies need long-term tracking and evaluation. 

Going forward, authorities will enhance research, monitoring, and policy reserves to improve the fertility support system and promote high-quality population development, Wang said.