Latest news with #ZichunHuang
The Star
5 hours ago
- Business
- The Star
Beijing offers childcare subsidies to boost fertility
Beijing rolled out an annual childcare subsidy of 3,600 yuan (about RM2,120) 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 on Monday. 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 too small to incentivise people to have children. The country'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 urbanisation. In the past two years, provinces nationwide have started handing out childcare subsidies in amounts that vary considerably, from 1,000 yuan (RM589) a child to up to 100,000 yuan (RM58,940), including housing subsidies. The government will fund the new national policy instead of local authorities, Xinhua said. 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.' 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. — Reuters
NBC News
19 hours ago
- Business
- NBC News
China unveils child care subsidies in push to boost fertility
BEIJING — China rolled out on Monday an annual child care subsidy of 3,600 yuan (about $500) until age 3, as authorities look to spur a flagging birth rate with fewer young people choosing to have children. The high cost of child care 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 3 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 will 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 too small to incentivize 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 child care 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. Demographer Emma Zang, a professor at Yale University, said a nationwide scheme might offer some coordination and signal greater central commitment, but called for greater efforts. 'Without sustained structural investment in areas like affordable child care, parental leave, and job protections for women, the effect on fertility is likely to remain minimal,' she added.
NDTV
a day ago
- Business
- NDTV
China's New Plan: Rs 45,000 A Year Per Child To Tackle Fertility Crisis
China, once known for its strict one-child policy, is now taking a major step to address its growing population crisis. In a landmark move, the Chinese Communist Party government has announced its first national childcare subsidy. Starting January 1, 2025, families will receive 3,600 yuan (around US $500) per year for every child under the age of three. The subsidy will continue until the child turns three, aiming to ease financial burdens and encourage higher birth rates. 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. 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 too 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 urbanisation. 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 the 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. Key Details: Scope & Eligibility: The subsidy applies equally to first, second, or third children born on or after January 1, 2025. Children born prior to that date but still under three will receive a prorated amount based on the months remaining. The policy is expected to benefit more than 20 million families of toddlers and infants. Maximum Benefit per Child: Up to 10,800 yuan total over three years. Coverage Estimate: The scheme is expected to benefit more than 20 million families with children under three each year. Tax & Social Benefits: Subsidies are exempt from individual income tax, and the payments will not count toward household or personal income for purposes such as minimum living allowances. Implementation Timeline: Local governments are preparing systems, with subsidy applications expected to open from late August 2025 onwards, administered via online and offline channels tied to the child's registered residence.
CNBC
a day ago
- Business
- CNBC
China unveils childcare subsidies in push to boost fertility
China rolled out on Monday an annual childcare subsidy of 3,600 yuan (about $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 urbanisation. 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.
DW
2 days ago
- Business
- DW
China to offer $500 per child in move to boost birth rate – DW – 07/28/2025
More than 20 provincial-level administrations in China now offer childcare subsidies. But analysts are skeptical that they will be able to reverse the declining population or spur spending. The Chinese government will offer parents subsidies of 3,600 yuan ($500, €429) per child under the age of three per year, Beijing's state media said Monday. China's population has declined for three consecutive years, the world's second most populous nation — after India — is facing an emerging demographic crisis. The number of births in 2024 — 9.54 million — was half as many as in 2016, the year that ended its one-child policy that was in place for more than three decades. Marriage rates in China have also hit a record low. Young couples put off having babies due to the high cost of raising children and career concerns. More than 20 provincial-level administrations in China now offer childcare subsidies, according to official data. In March, Hohhot, the capital of Inner Mongolia in northern China, started giving families money to have more children. Couples with three or more children can get up to 100,000 yuan for each new baby. In Shenyang, in northeastern Liaoning province, local authorities give families who have a third child 500 yuan per month until the child turns three. In order to create a "fertility-friendly society", China's southwestern Sichuan province is proposing to increase marriage leave from 5 to 25 days, and more than double the current 60-day maternity leave to 150 days. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Analysts said the subsidies are a positive step, but warned they won't be enough on their own to reverse China's population decline or lift its sluggish domestic spending. Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, told Reuters that the new subsidy showed the government had recognized the "serious challenge" that low fertility poses to the economy. Zichun Huang, China economist at Capital Economics, said the policy marked a "major milestone" in terms of direct handouts to households and could lay the groundwork for more fiscal transfers in the future. But he also said the sums were too small to have a "near-term impact on the birth rate or consumption." "For young couples who just got married and already have a baby, it might actually encourage them to consider having a second child," Wang Xue, a mother to a nine-year-old son from Beijing, told AFP. But she said the new measures would not be enough to convince her to have a second child. "Having one child is manageable, but if I had two, I might feel a bit of (financial) pressure," the 36-year-old told AFP.
