Latest news with #birthrate
CTV News
a day ago
- Business
- CTV News
China unveils childcare subsidies in push to boost fertility
Red flags flutter in the wind near the Chinese national emblem in Beijing, Monday, March 10, 2025. (AP Photo/Andy Wong) China rolled out on Monday an annual childcare subsidy of 3,600 yuan (about US$500) until age three, as authorities look to spur a flagging birth rate with fewer young people choosing to have children. The high cost of childcare and education as well as job uncertainty and a slowing economy are among the concerns that have discouraged many young Chinese from getting married and starting a family. Subsidies will start from this year, with partial subsidies for children under three born prior to 2025, in a policy expected to benefit more than 20 million families of toddlers and infants, the official Xinhua news agency said. The plan is an 'important national livelihood policy' and direct cash subsidies would help 'reduce the cost of family childbirth and parenting,' the National Health Commission said. Demographers and economists said while the move was positive, the amount was likely to small to incentivise people to have children. China's population fell for a third consecutive year in 2024, with experts warning of a worsening downturn, after decades of falling birth rates following a one-child policy adopted from 1980 to 2015, coupled with rapid urbanization. In the past two years provinces nationwide have started handing out childcare subsidies in amounts that vary considerably, from 1,000 yuan a child to up to 100,000 yuan, including housing subsidies. The central government will fund the new national policy instead of local authorities, Xinhua said. Authorities are expected to announce more details on Wednesday. Zichun Huang, China Economist at Capital Economics, said the sums involved were too small to have a near-term impact on the birth rate or consumption. 'But the policy does mark a major milestone in terms of direct handouts to households and could lay the groundwork for more fiscal transfers in future.' Citi Research estimates a total lump-sum payout of 117 billion yuan in the second half of this year through the plan, saying the scheme is more meaningful as a consumption policy than as a population policy. 'As a population policy, it remains to be seen whether the national program can move the needle on fertility rate,' the research house said in a note. Authorities in China unfurled a series of 'fertility friendly' measures in 2024 to tackle the coming decade's challenge of the entry into retirement of roughly 300 million people, equivalent to almost the entire U.S. population. A nationwide scheme may offer some coordination and signal greater central commitment, said demographer Emma Zang, a professor at Yale University, but called for greater efforts. 'Without sustained structural investment in areas like affordable childcare, parental leave, and job protections for women, the effect on fertility is likely to remain minimal,' she added. (Reporting by Farah Master and the Beijing Newsroom; Editing by Toby Chopra, Ros Russell and Lincoln Feast)
Yahoo
a day ago
- Business
- Yahoo
China offers parents £375 per child to tackle declining birth rate
China will offer parents an annual childcare subsidy of 3,600 yuan (£376) in an effort to arrest the country's declining birth rate. The scheme, announced on Monday, will cover all children under three. It will apply retroactively from 1 January 2025, but families with children born between 2022 and 2024 can also apply for partial subsidies, Xinhua news agency reported. According to the National Health Commission, the nationwide subsidy is expected to benefit nearly 20 million families. The subsidies will not be treated as taxable income or counted when determining eligibility for poverty assistance. The National Bureau of Statistics reported earlier this year that China's population had fallen for the third consecutive year in 2024. It had declined by 1.39 million to 1.408 billion as deaths continued to surpass births. In 2023, the population had fallen by 2.08 million. The fall was double the previous year's, which marked the first population drop in 60 years. China's birth rate has been declining for decades, driven by the 'one child policy' implemented from 1980 to 2015 and rapid urbanisation. The 'one child policy' has also resulted in a skewed sex ratio due to a cultural preference for male children. Marriages have also witnessed a decline, with 6.1 million marriage registrations nationwide in 2024 compared to 7.7 million the previous year. The subsidy scheme follows regional experiments with childcare incentives in over 20 provinces. Inner Mongolia's capital city of Hohhot introduced a policy in March for parents to get up to 10,000 yuan (£1,045) in annual subsidy until the third child turned ten, along with daily free milk for new mothers and an electronic voucher worth 3,000 yuan (£313) for dairy products. In cities like Shenyang or Changchun, subsidies range from 1,800 to 3,600 yuan (£188-376) per child. Some regions offer one‑off birth bonuses as well. 'Although the subsidies don't cover all childcare costs, they help with essentials like baby formula and diapers, easing the financial burden,' a woman named Ma Ying from Guyuan in Ningxia told Xinhua. Critics, however, say that declining fertility rates are not just an issue of finances. The high cost of childcare and education, job uncertainty and a slowing economy are discouraging young Chinese men and women from marrying and starting families, demographers argue. They also point to gender discrimination and traditional expectations for women to manage the household as contributing factors to the declining birthrate. 'Without sustained structural investment in areas like affordable childcare, parental leave, and job protections for women, the effect on fertility is likely to remain minimal,' demographer Emma Zang, a professor at Yale University, told Reuters. To promote a more 'fertility friendly society', the southwestern province of Sichuan has proposed extending marriage leave from five to 25 days and increasing maternity leave from 60 days to 150 days.
The Independent
a day ago
- Business
- The Independent
China's financial offer to boost births
China has introduced a nationwide annual childcare subsidy of 3,600 yuan (£376) for each child under three years old. The scheme, effective from 1 January 2025, aims to combat the country's declining birth rate and is projected to benefit nearly 20 million families. This initiative follows China's population falling for the third consecutive year, with a decline of 1.39 million in 2024. The long-term decline in birth rates is linked to the former one-child policy, rapid urbanisation, and a cultural preference for male children. Critics argue that financial incentives alone may not be enough, pointing to high childcare costs, job uncertainty, and gender discrimination as key factors discouraging family growth.
Russia Today
a day ago
- Business
- Russia Today
China rolls out new plan to boost birthrates
China has unveiled its first nationwide childcare subsidy program, offering families an annual payment of 3,600 yuan (approximately $500) for every child under the age of three. The measure, announced on Monday, is part of a broader government effort to curb the country's persistently low birthrate and long-term demographic decline. The policy marks the latest attempt by Beijing to counteract a historic demographic downturn. China's population declined for seven consecutive years before registering a modest rebound in 2024. The slide has been driven by a steep drop in births, a rapidly aging society, and growing economic uncertainty. In response, authorities have rolled out a series of measures in recent years, including tax breaks, parental leave extensions, and childcare support. The new program will begin this year and is expected to benefit over 20 million families each year, according to the Chinese National Health Commission. The subsidy will be paid annually until a child turns three and will apply to all children regardless of birth order. It will be exempt from income tax and will not count toward household income when determining eligibility for other forms of social assistance. The step reflects a significant policy shift away from decades of strict family planning. China ended its one-child policy in 2015, first allowing two children per family and later raising the limit to three. However, birthrates have continued to decline. Although there was a modest rebound in 2024, when the country recorded around 9.5 million births, the figure remains nearly half of what it was in 2017. Government data shows a steady drop throughout the early 2020s, with 2020 marking the lowest birth total in more than four decades. Despite growing state support, many young Chinese remain reluctant to have children. Economists and demographers point to financial strain, high housing and education costs, job insecurity, long working hours, and shifting social values, particularly among women, as major factors behind the continued decline in fertility. Urbanization, rising educational attainment, and the lingering psychological legacy of the one-child policy are also cited as factors contributing to shifting cultural attitudes toward marriage and childbearing.
The Independent
a day ago
- Business
- The Independent
China offers parents £375 per child to tackle declining birth rate
China will offer parents an annual childcare subsidy of 3,600 yuan (£376) in an effort to arrest the country's declining birth rate. The scheme, announced on Monday, will cover all children under three. It will apply retroactively from 1 January 2025, but families with children born between 2022 and 2024 can also apply for partial subsidies, Xinhua news agency reported. According to the National Health Commission, the nationwide subsidy is expected to benefit nearly 20 million families. The subsidies will not be treated as taxable income or counted when determining eligibility for poverty assistance. The National Bureau of Statistics reported earlier this year that China's population had fallen for the third consecutive year in 2024. It had declined by 1.39 million to 1.408 billion as deaths continued to surpass births. In 2023, the population had fallen by 2.08 million. The fall was double the previous year's, which marked the first population drop in 60 years. China's birth rate has been declining for decades, driven by the 'one child policy' implemented from 1980 to 2015 and rapid urbanisation. The 'one child policy' has also resulted in a skewed sex ratio due to a cultural preference for male children. M arriages have also witnessed a decline, with 6.1 million marriage registrations nationwide in 2024 compared to 7.7 million the previous year. The subsidy scheme follows regional experiments with childcare incentives in over 20 provinces. Inner Mongolia's capital city of Hohhot introduced a policy in March for parents to get up to 10,000 yuan (£1,045) in annual subsidy until the third child turned ten, along with daily free milk for new mothers and an electronic voucher worth 3,000 yuan (£313) for dairy products. In cities like Shenyang or Changchun, subsidies range from 1,800 to 3,600 yuan (£188-376) per child. Some regions offer one‑off birth bonuses as well. 'Although the subsidies don't cover all childcare costs, they help with essentials like baby formula and diapers, easing the financial burden,' a woman named Ma Ying from Guyuan in Ningxia told Xinhua. Critics, however, say that declining fertility rates are not just an issue of finances. The high cost of childcare and education, job uncertainty and a slowing economy are discouraging young Chinese men and women from marrying and starting families, demographers argue. They also point to gender discrimination and traditional expectations for women to manage the household as contributing factors to the declining birthrate. 'Without sustained structural investment in areas like affordable childcare, parental leave, and job protections for women, the effect on fertility is likely to remain minimal,' demographer Emma Zang, a professor at Yale University, told Reuters. To promote a more 'fertility friendly society', the southwestern province of Sichuan has proposed extending marriage leave from five to 25 days and increasing maternity leave from 60 days to 150 days.
