China's newly launched childcare subsidies and free preschool education initiative highlight a growing national commitment to shared responsibility in child-rearing, as these policies are designed to ease family burdens and address demographic challenges, observers said.
China rolled out a nationwide childcare subsidy program starting this year, as part of broader efforts to support families and encourage childbirth. The program will offer families 3,600 yuan (about 503 U.S. dollars) per year for each child under the age of three.
The subsidies will be exempt from individual income tax and will not be counted as household or individual income when identifying assistance recipients, such as those receiving subsistence allowances or classified as living in extreme difficulty.
While some residents in first-tier cities said the annual 3,600 yuan is insufficient to cover childcare costs, the subsidy could still ease financial pressures for lower-income families in smaller cities.
"In a city like Shenzhen, 3,600 yuan per year might not be much of an incentive," said a Shenzhen resident.
"This kind of support could ease some financial pressure, especially for young couples who've just had a baby," said another resident.
Public reactions reveal a clear urban-rural divide regarding the subsidy and planned fee reductions for children in their final year of public kindergarten.
Yang Yajuan, a Shenzhen-based pediatrician and mother of three who tracks birth rates, believes the policy could benefit lower-income families in inland areas.
"3,600 yuan a year-just 300 per month-isn't much in Shenzhen, but it helps in inland areas with lower incomes. Still, relying solely on subsidies is unrealistic," said Yang.
China recorded 9.5 million newborns last year, a slight increase from 2023 but still far below targets.
"Before 2023, our hospital had high pregnancy registration rates. But since 2023 – especially in 2024 – we've seen a steep drop," said Yang.
Starting from the autumn semester of 2025, China will waive the care and education fees for children in public kindergartens in the year prior to entering primary school, according to a guideline made public by the State Council on Tuesday.
The move aims to effectively lower education costs and improve the country's public education services, according to the document issued by the General Office of the State Council.
Yang's family exemplifies these challenges: her two older children attend preschool at a cost of 10,000 yuan (about 1,392 U.S. dollars) per year each, while her youngest still awaits a spot.
Their local district will pilot free preschool programs this September, and Yang sees this as a promising step forward.
"This policy is the government's way of saying: 'We've got your back.' It's the first step that makes us believe more support will come," said Yang.
Officials estimate the national child subsidy program is expected to benefit more than 20 million families each year.
"These policies will boost preschool access and equity, strengthening human capital and ease aging pressures long-term. But challenges remain, like securing sustainable funding, supporting private kindergartens during transition, ensuring implementation capacity and preventing equity gaps from regional policy differences," said Huang Rui, a senior researcher of China Development Institute.
China's new childcare subsidy policy signals more government support: observers
