Tuesday, August 05, 2025

BEATING THE G7

China to offer free pre-school education from autumn

Beijing (AFP) – China said on Tuesday it would introduce free pre-school education from the autumn, as the world's second most populous nation seeks to boost childbirth in the face of a looming demographic crisis.


Issued on: 05/08/2025 - 

China's population has declined for three consecutive years, with UN models predicting it could fall from around 1.4 billion today to 800 million by 2100 © STR / AFP/File

China's population has declined for three consecutive years, with United Nations demography models predicting it could fall from around 1.4 billion today to 800 million by 2100.

There were just 9.54 million births in China last year, half the number in 2016, when Beijing ended its one-child policy after more than three decades.

The population declined by 1.39 million last year, and China lost its crown as the world's most populous country to India in 2023.

Marriage rates are also at record low levels, with many young couples put off having babies by high child-rearing costs and career concerns.


On Tuesday China's cabinet, the State Council, announced that: "starting in the fall semester of 2025, childcare and education fees will be waived for children attending public kindergartens in the year before school".

The policy aims to "effectively reduce the cost of education, improve the level of public education services, and provide education that satisfies the people", the State Council said.

Beijing described it as an "important measure that concerns thousands upon thousands of households and relates to long-term development".

Funding for the new measure would be shared between central and local authorities, while children attending approved private kindergartens would also be eligible for fee reductions.

The announcement comes a week after the country said it would offer parents the equivalent of $500 per year for each child under the age of three.

At a news conference in Beijing last week, National Health Commission (NHC) official Wang Haidong acknowledged that the country had "gradually shifted from a phase of population growth to a phase of population decline".

"The childcare subsidy system can directly increase people's cash income," Guo Yanhong, vice minister of the NHC, said.

Chinese leaders have in recent years struggled to breathe life into the economy, beset by a years-long property crisis that has spooked would-be homebuyers and dissuaded many people from having children.

China's shrinking population is also ageing fast, sparking worries about the future of the country's pension system.

There were nearly 310 million people aged 60 and over in 2024.

© 2025 AFP


China says childcare subsidies to 'add new impetus' to economy

Beijing (AFP) – China said Wednesday that recently announced subsidies to support families with young children will provide a much-needed economic boost, as Beijing seeks to promote spending and avert a demographic crisis.


Issued on: 30/07/2025 - 

China's population declined by 1.39 million last year © Hector RETAMAL / AFP/File

Authorities in the world's second-largest economy on Monday declared the new nationwide policy, which offers parents the equivalent of around $500 per child under the age of three per year.

"The childcare subsidy system can directly increase people's cash income," Guo Yanhong, vice minister of China's National Health Commission (NHC), said at a press conference in Beijing on Wednesday.

The measure "will better protect and improve people's livelihoods", Guo said.

"At the same time, it will help promote a virtuous cycle of improving people's livelihoods and economic development, adding new impetus to the sustained and healthy development of the economy," she added.

Chinese leaders have in recent years struggled to breathe life into the economy, beset by a yearslong property crisis that has spooked would-be homebuyers and dissuaded many people from having children.

Beijing has since late last year introduced a series of aggressive pro-consumption policy measures -- including key rate cuts and cancellations of certain restrictions on homebuying -- but results have been limited.

The slump comes as worrying demographic trends have become more pronounced.

China's population declined by 1.39 million last year, and marriage rates now sit at record lows.

At Wednesday's press conference in Beijing, NHC official Wang Haidong acknowledged that the country has "gradually shifted from a phase of population growth to a phase of population decline".

"To adapt to this new demographic landscape, the country is accelerating the improvement of its fertility support policy system, continuously reducing burdens on families of childbirth, raising children and educating them," said Wang.

This, added Wang, would help in "promoting the construction of a fertility-friendly society".

Zichun Huang, China economist at Capital Economics, told AFP this week that the sum of $500 per child was too small to have a "near-term impact on the birth rate or consumption", but the policy could lay the groundwork for further child subsidies in the future.

A finance ministry official said 90 billion yuan ($12.5 billion) had been set aside as a preliminary budget for the new scheme this year.

Also on Wednesday, China's top leaders gathered for a meeting on the economy chaired by President Xi Jinping, state media reported.

In a speech, Xi noted "numerous risks and challenges" facing the economy, calling for the government to "strengthen macroeconomic policies and intensify them at the appropriate time", state news agency Xinhua reported.

© 2025 AFP

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