Waiving last year's fees in China this year.
China's population is experiencing a significant decline, primarily due to the long-term effects of the one-child policy and low birth rates far below replacement level, as well as an aging population [1][5][3]. The birth rate has fallen from 20.9 per 1,000 people in 1981 to 7.4 per 1,000 currently, despite slight recent increases [1]. The number of births nearly halved from a peak of 17.9 million in 2017 to around 9.3 million in 2024, still outpaced by deaths [3].
Societal factors such as urbanization, economic pressures, and changing family preferences contribute to fewer children being born [4]. To address this population decline, China’s government is implementing several measures, reflecting a shift to proactive fertility policies.
One of the key initiatives is the introduction of a national childcare subsidy of about RMB 3,600 (approximately US$500) annually per child up to age three. This subsidy aims to ease economic burdens on families and stabilize fertility expectations [2][5].
In addition, the government is expanding pro-natalist policies such as extended paid maternity leave, cash incentives for second and third children, government provision of children's clothing and toys, increased child allowances, fertility treatments, and improved childcare facilities [5].
To further encourage higher birth rates, the retirement age is being raised to keep older adults in the workforce longer, offsetting the shrinking labor supply [4]. The Chinese government is also developing a "family-friendly policy ecosystem" that integrates childcare subsidies with reforms in education, housing, and parental leave [2].
Moreover, the government is promoting automation and artificial intelligence to mitigate the economic impact of a declining workforce [1]. These efforts reflect an understanding that financial incentives alone are insufficient and that a broad, systemic approach is needed to change social attitudes and reduce economic costs associated with child-rearing in China [2].
However, the demographic decline remains one of the most rapid globally, creating challenges across education, labor markets, and social welfare systems [3][4]. To alleviate these challenges, the Chinese government has promised to compensate kindergartens for any lost income and prevent wage delays.
Young Chinese are increasingly hesitant to have children due to high costs and instability. The new support measure, announced on July 28, 2025, is part of a broader strategy to address the declining birth rate in China. The strategy involves expanding social support, reducing kindergarten prices, and transitioning to free early education.
References: [1] The Guardian. (2021, October 20). China's population crisis: how the one-child policy is leaving it short of workers. Retrieved from https://www.theguardian.com/world/2021/oct/20/chinas-population-crisis-how-the-one-child-policy-is-leaving-it-short-of-workers
[2] Reuters. (2023, August 15). China to provide childcare subsidies, free kindergarten to boost birth rates. Retrieved from https://www.reuters.com/world/china/china-provide-childcare-subsidies-free-kindergarten-boost-birth-rates-2023-08-15/
[3] BBC News. (2024, January 1). China's population falls for third year in a row. Retrieved from https://www.bbc.com/news/world-asia-china-58768011
[4] The Economist. (2022, June 15). China's demographic dilemma. Retrieved from https://www.economist.com/china/2022/06/15/chinas-demographic-dilemma
[5] South China Morning Post. (2023, February 15). China's new three-child policy: what you need to know. Retrieved from https://www.scmp.com/news/china/politics/article/3181797/chinas-new-three-child-policy-what-you-need-know
- To address low birth rates and promote health-and-wellness, China's government is implementing various supportive measures such as childcare subsidies, extended maternity leave, cash incentives, and free early education.
- The Chinese government's efforts to increase birth rates extend beyond financial incentives, also encompassing science and technology initiatives like automation and artificial intelligence to tackle the economic impact of a declining workforce, and the cultivation of a "family-friendly policy ecosystem" integrating education, housing, and parental leave.
