China has initiated a fresh application cycle for its national childcare subsidy initiative, marking another significant step in the country’s comprehensive strategy to address demographic challenges. The program, which commenced in July 2025, provides eligible families with an annual tax-free allocation of 3,600 yuan (approximately $513) for each child under three years of age.
According to official data released by the National Health Commission, the subsidy scheme has already extended benefits to over 24 million citizens nationwide, achieving a distribution rate nearing 80% for the 2025 allocation period. The Ministry of Finance disclosed that the central government had earmarked 90 billion yuan from its central budget to fund this ambitious social welfare program.
Prospective beneficiaries can submit applications through multiple digital platforms including Alipay and WeChat, in addition to traditional offline channels. This multi-platform approach ensures broader accessibility and streamlined processing for families across China’s diverse socioeconomic landscape.
This policy development occurs against the backdrop of China’s evolving demographic profile. Recent statistics indicate approximately 30 million children under three years old nationwide, while the population aged 60 and above reached 310 million by the end of 2024. After seven consecutive years of decline, the country witnessed a modest rebound in birth rates during 2024, signaling potential positive trends.
The childcare subsidy represents just one component of China’s expanding framework of family support policies. Additional measures include enhanced income tax deductions for childcare and education expenses, with monthly deduction standards increased from 1,000 to 2,000 yuan per child. Future policy initiatives already in development aim to further alleviate financial pressures associated with childrearing, including plans to achieve nationwide insurance coverage for basic childbirth costs by 2026.
The emphasis on fertility policy was notably reinforced during last year’s Central Economic Work Conference, where authorities emphasized maintaining birth rates at stable levels as part of China’s broader social and economic planning.