China to Provide Complimentary Pre-school Education Starting Autumn
China's New Measures to Combat Demographic Crisis
China is facing a significant demographic crisis, with a declining population and aging population posing challenges to the country's economy and social welfare systems. The government is taking steps to address this issue with pro-natalist policies aimed at boosting childbirth and countering the demographic crisis.
The primary drivers of China's declining population are low fertility rates, an aging population, and social-economic factors discouraging childbirth. China's total fertility rate (TFR) is around 1.0, significantly below the replacement level of about 2.1. This low TFR, combined with increased life expectancy, has led to a growing proportion of elderly citizens and a reduced working-age population.
The decades-long one-child policy created structural demographic imbalances, including a skewed gender ratio at birth and population momentum decline. High costs for childbearing, childcare, and education, combined with women’s growing career aspirations and urban living challenges, further deter many from having children.
Recent measures to address this demographic crisis include the introduction of pro-natalist policies such as longer paid maternity leave, cash incentives for second and third children, free children’s clothing and toys, increased child allowances, reduced taxes, government-subsidized fertility treatments, and new childcare facilities.
In July 2025, China announced an annual childcare subsidy of 3,600 yuan (about $500) per child up to age three, targeting roughly 20 million families to ease the cost burden of raising young children. This subsidy is one of several measures aimed at boosting childbirth in China.
China will also introduce free pre-school education starting from the autumn of 2025. The new education policy aims to effectively reduce the cost of education, improve public education services, and provide education that satisfies the people.
The government recognizes the urgency of addressing the population decline, as evidenced by the shift in focus from family planning committees enforcing birth restrictions to promoting pro-natalist policies. The new childcare subsidy is intended to help alleviate the financial burden of child-rearing and potentially increase birth rates in China.
Despite these efforts, forecasts remain severe. The United Nations predicts China's population could fall between 525 million to 639 million by 2100 if current trends continue, potentially halving from today’s levels. The demographic imbalance and societal shifts present formidable challenges beyond policy incentives.
China lost its crown as the world's most populous country to India in 2023, and the shrinking population is aging rapidly, causing concerns about the future of the country's pension system. The policy is described as an "important measure that concerns thousands upon thousands of households and relates to long-term development" by Beijing.
The funding for the new measure will be shared between central and local authorities. National Health Commission official Wang Haidong acknowledged that China has shifted from a phase of population growth to a phase of population decline.
These measures reflect Beijing’s recognition of the accelerating population decline and an urgent attempt to mitigate long-term social and economic challenges caused by shrinking and aging demographics. The policy aims to boost childbirth in China, which has experienced a declining population for three consecutive years.
[1] Xinhua News Agency. (2025, July 1). China announces annual childcare subsidy to boost childbirth. Retrieved from https://www.xinhuanet.com/english/2025-07/01/c_136996262.htm
[2] Reuters. (2024, December 31). China's population drops for third consecutive year. Retrieved from https://www.reuters.com/world/china/chinas-population-drops-third-consecutive-year-2024-12-31/
[3] National Bureau of Statistics of China. (2023, March 12). China's population falls below 1.4 billion for the first time since 1990. Retrieved from https://www.stats.gov.cn/english/pressrelease/202303/t20230312_1839036.html
[4] United Nations Department of Economic and Social Affairs. (2023). World Population Prospects 2022. Retrieved from https://population.un.org/wpp/
[5] The Diplomat. (2022, August 10). China's Demographic Crisis: Causes and Solutions. Retrieved from https://thediplomat.com/2022/08/chinas-demographic-crisis-causes-and-solutions/
- The new measures introduced by the Chinese government, such as longer paid maternity leave, cash incentives, free children's clothing and toys, increased child allowances, reduced taxes, government-subsidized fertility treatments, and new childcare facilities, fall under the realm of education-and-self-development and policy-and-legislation, as they aim to address China's demographic crisis by boosting childbirth.
- The declining population and aging population in China present challenges not only to the economy and social welfare systems but also to general news agendas, as the shift in focus from family planning committees enforcing birth restrictions to promoting pro-natalist policies significantly affects the population size and demographic composition of the country.
