China moves to reduce childcare costs

In a significant move to alleviate financial pressures on families, Chinese authorities have unveiled comprehensive nationwide regulations standardizing kindergarten fee structures. The new policy framework, jointly announced by the National Development and Reform Commission, Ministry of Education, and Ministry of Finance, takes effect January 1st, 2026, marking a crucial step toward affordable preschool education accessibility.

The regulatory overhaul establishes clear fee categorization systems while implementing robust oversight mechanisms. Educational institutions may now only charge for four explicitly defined services: basic childcare and education, boarding facilities, selective supplementary services, and commissioned operational costs. Special provisions address nursery programs catering to children aged 2-3 years, acknowledging their distinct resource requirements.

Public and non-profit private kindergartens will operate under government-guided pricing for tuition and boarding fees, with provincial authorities determining rates based on operational expenditures minus existing public subsidies. Service and commissioned charges will generally adhere to market-determined pricing structures. Meanwhile, for-profit private institutions retain autonomy in fee-setting but must submit detailed pricing reports to local education departments, where authorities reserve the right to conduct cost investigations to prevent excessive charges.

Transparency measures form a cornerstone of the new policy, mandating all kindergartens to publicly display complete fee catalogs through official websites and physical notices. The regulations explicitly prohibit any unlisted charges, with stringent bans on unauthorized fees including after-hours programming contributions or enrollment-linked parental donations. Third-party collection arrangements directly soliciting payments from parents have been wholly eliminated.

The coordinated implementation strategy emphasizes maintaining service quality while reducing household financial burdens, supporting broader national initiatives addressing demographic challenges through enhanced childcare affordability.