China Focus: Generous childcare subsidies rolled out across China in birth boost effort

BEIJING, March 15 (Xinhua) -- Generous childcare subsidies have been reported across China as part of the country's holistic effort to boost birth rates, making news headlines and sparking heated discussions.

The latest news came from Hohhot, capital of north China's Inner Mongolia Autonomous Region. The city announced this week that it will offer a one-time subsidy of 10,000 yuan (about 1,394 U.S. dollars) to couples having their first child. A second child will receive 10,000 yuan per year until he/she reaches five years old.

For the third child or more, the annual subsidy is 10,000 yuan until the child turns 10, with the total amount reaching 100,000 yuan, a relatively high amount compared with other cities.

"The policy made us more assured in making our mind to having a second child. The subsidies can reduce the financial costs, especially for maternity and childcare," said Yang Lixin, 30, who works at a private firm in Hohhot and already has a five-year-old.

The policy came on the heels of the annual sessions of the National People's Congress (NPC), China's national legislature, and the National Committee of the Chinese People's Political Consultative Conference (CPPCC), the top political advisory body.

The former session saw the term "provide childcare subsidies" included in the annual Report on the Work of the Government for the first time. The report was delivered on March 5 before being approved on Tuesday at the session.

"We will formulate policies on boosting birth rates, provide childcare subsidies, vigorously develop integrated nursery and childcare services, and increase public-interest childcare services," the report reads.

During a plenary meeting of the delegation of east China's Jiangsu Province on March 7, Director of the National Health Commission Lei Haichao said that the commission was working with relevant departments to draft a childcare subsidy operational plan, and the public would see direct, beneficiary measures and corresponding policy arrangements in due course.

The inclusion of childcare subsidies in the government work report signals a commitment to supporting fertility intentions with tangible financial assistance, said Ni Bangwen, a member of the National Committee of the CPPCC. He called for further efforts to issue comprehensive measures to support childbearing families.

More than 20 provincial-level regions in China had explored offering childcare subsidies at different levels, according to earlier data from the National Health Commission.

For instance, Shenyang, the capital of northeast China's Liaoning Province, provided a monthly subsidy of 500 yuan to local families for their third child until the child turns three, according to a document issued in 2023.

Childcare services have also been improved nationwide, in addition to financial support, to create better situations for parents. In Suzhou, Jiangsu Province, community-based childcare centers launched full-day care, half-day care, temporary care, and hourly care for infants and children, providing convenient and reliable childcare options for residents.

Moreover, maternity leave in China has been generally extended to over 158 days, along with spousal paternity leave and parental leave, making new mothers feel increasingly supported.

Longer maternity leave as well as additional spousal leave and parental leave could enhance family cohesion and alleviate caregiving burdens. Meanwhile, economic subsidies eased the financial pressure on families raising children, thereby boosting their willingness to have more children, said Mi Hong, director of the Institute for Population and Development Studies at Zhejiang University.

Providing childcare subsidies is also relevant to enterprises. "A significant portion of our key employees are of childbearing age. Childcare subsidies will help retain talent and enable the company's sustainable development," said Sheng Jing, the human resources chief of a data-tech company in north China's Tianjin Municipality.

"Enterprises should provide heartfelt support to employees who raise children and explore a new way to balance working and child-rearing," said Wang Zhen, an NPC deputy and entrepreneur of Inner Mongolia. ■