China Implements Family Growth Incentives with Subsidies and Free Milk
China is incentivizing family growth through childcare subsidies and free milk for new mothers in Hohhot, aiming to address declining birth rates. The population dropped for the third consecutive year in 2024, influenced by the previous one-child policy and high family costs. Measures include substantial financial support for families with children.
In an effort to address its declining birth rates, China is implementing a series of incentives, most notably in Hohhot, the capital of Inner Mongolia. This month, local authorities announced childcare subsidies and a daily provision of free milk to support new mothers. Such initiatives reflect a growing trend among over 20 provincial administrations across the nation, as they work to encourage marriage and childbearing among young couples.
China’s population has experienced a decrease for the third consecutive year in 2024, emphasizing the urgent need for policies that promote family growth. The significant decline in marriages, down by 20%, is contributing to this demographic crisis, which is largely attributed to the long-term effects of the one-child policy (1980-2015), extensive urbanization, and the rising costs associated with family life. Since 2021, couples have been permitted to have up to three children.
At a recent session of China’s parliament, Premier Li Qiang outlined plans to bolster the birth rate through childcare subsidies and free preschool education. An action plan announced also highlights the importance of establishing a robust childcare subsidy framework across the nation.
The city of Hohhot is taking bold steps, offering a one-time payment of 10,000 yuan (approximately $1,382.51) for the birth of a first child, and a similar annual subsidy for the second child until age five. Families will also receive 10,000 yuan annually for a third child until they turn ten years old, amounting to double the annual income of local residents. Additionally, Hohhot has launched an initiative named the “One Cup of Milk Fertility Care Action for Mothers,” which provides free daily milk to mothers post-birth, as well as electronic vouchers worth 3,000 yuan from dairy giants Yili and China Mengniu Dairy.
China’s recent initiatives signal a proactive approach to counter the troubling trend of declining birth rates. By offering substantial financial support and practical benefits, such as free milk for mothers, local governments aim to foster a more family-friendly environment, encouraging young couples to consider marriage and parenthood seriously. As these policies evolve, their effectiveness will be essential in addressing the pressing demographic challenges facing the nation.
Original Source: www.thecattlesite.com
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