China rolls out $12-billion childcare scheme to address deepening demographic crisis

China on Wednesday announced an allocation of 90 billion yuan (about USD 12.6 billion) to encourage couples to have more children as the country grapples with a deepening demographic crisis caused by declining birth rates.

The allocation will be made in the central budget this year for the issuance of childcare subsidies, said China’s finance ministry. The fund, which is a transfer payment from the central budget, will assist local governments in issuing the subsidies, covering nearly 90 per cent of the total amount distributed, ministry official Guo Yang told a press conference.

The move follows the country’s recent introduction of a nationwide childcare subsidy programme, which sets a standard of about USD 500 per year for each child under the age of three.

China's demographic pressures are being intensified by declining birth rates, shrinking working-age population and increased life expectancy.