In Zhushan County, Hubei Province, young couples are discussing a new incentive: housing subsidies for families with children. According to the local authority, families with a second child born between June 2021 and June 2026, that buy new commercial housing in the county, qualify for a 25-square-meter subsidy. Those with a third child receive an additional 50 square meters—and the subsidies can be combined. A three-child family could thus obtain up to 75 square meters in support. With local housing prices at 4,000-5,000 yuan ($571-$714) per square meter, the benefit may exceed 300,000 yuan ($42,810).

This tangible financial incentive directly addresses the pressing concerns of high childrearing costs and immense parenting pressures, representing a local attempt to explore pathways for encouraging childbirth.

Meanwhile, in Beijing, another form of support is quietly making a difference for families. When Li Jing, a 35-year-old university lecturer, gave birth in September 2025, she received a welcome surprise at the cashier counter: "The total cost for your natural delivery is 6,500 yuan ($928). Medical insurance provides a fixed reimbursement of 5,000 yuan ($714), so you need to pay only 1,500 yuan ($214)."

"That's half of what I was expecting!" Li said.

In China, basic medical insurance for urban employees is jointly financed by individuals and their employers, while that for rural residents and non-working urban residents is funded through a combination of individual contributions and government subsidies. Medical services used by participants are reimbursed under these insurance schemes.

"Just before being discharged from hospital, I submitted an application for parenting subsidies. I can receive 3,600 yuan ($513) annually until the child turns 3, deposited directly into my personal account, on top of maternity allowances and personal income tax special additional deductions," Li told Beijing Review.

Li's case reflects a broader reality in the Chinese capital, where a multi-tiered support system has been put in place. Together, these measures significantly lower the financial burden of having and raising children.

The commitment 

On December 13, 2025, a national conference on healthcare security was held in Beijing, sending a clear signal: Authorities are working toward essentially eliminating out-of-pocket costs for covered delivery expenses nationwide in the coming year. This means families will no longer need to worry about the basic medical costs of childbirth when welcoming a new life.

"This is not only economic support but also conveys a value signal: Childbirth is cherished and supported by society," Jiang Quanbao, a professor at the School of Labor Economics, Capital University of Economics and Business in Beijing, said in an interview with newspaper China Business News. In his view, stabilizing the number of new births and alleviating the overly rapid decline of the youth population require substantive policy backing. China's population aged 65 and above reached 220 million in 2024, accounting for 15.6 percent of the total.

Although full reimbursement for delivery-related medical costs by medical insurance schemes has not been implemented nationwide, provinces like Jilin, Jiangsu and Shandong have already made "having a baby with almost no out-of-pocket cost" a reality—serving as testing grounds for their effectiveness of this policy.

From childbirth to childrearing 

However, a childbirth-friendly society requires more.

On July 28, 2025, a nationwide parenting subsidy was introduced, providing 3,600 yuan annually for every child under 3, starting from January 1, 2025.

"This time, real financial resources are being allocated to encourage childbirth and support families. It's a landmark event," Shi Zhilei, Vice President of the China Population Association and a professor at Zhongnan University of Economics and Law in Wuhan, Hubei Province, told newspaper Southern Weekly.

Following the policy announcement, local governments swiftly acted. From mid-to-late November 2025, residents in many areas began receiving parenting subsidy payments, with December being the peak distribution period. As of December 10, 2025, at least a dozen provincial-level regions, including Hubei, Jilin, Guangdong, Beijing, Shanghai, Shandong, Yunnan, Zhejiang, Hainan, Hunan, Guangxi and Xizang, had issued their implementation plans or measures.

Li recently received a notification that the maternity allowance she'd applied for had been deposited into her account.

What reassures her further is that her elder son will enter the final year of kindergarten the year after next, coinciding with the implementation of the policy for one free year of pre-school education. "It suddenly feels like a weight has been lifted," she said.

Starting from the autumn semester of 2025, China is waiving the care and education fees for children in public kindergartens in the year prior to entering primary school. For children enrolled in private kindergartens, fees are also reduced in accordance with the amount exempted at local public kindergartens, according to a document issued by the General Office of the State Council, the highest state administrative organ, last August.

Meanwhile, in Zhushan, a young couple is doing the math: If they have a second child, they can receive a 25-square-meter housing subsidy when purchasing an apartment in a designated residential community in the county seat. Combined with their savings, the pressure of upgrading to a larger home will be greatly reduced.

Two households, two distinct policy encounters, yet united in purpose: to ease the financial weight of family planning and afford young parents greater freedom and peace of mind.

Legislating for childcare 

On December 22, 2025, a draft law on childcare services drew widespread attention from young parents as it was submitted to the Standing Committee of the National People's Congress, China's top legislature, for review.

As reported by Xinhua News Agency, this legislation, the first of its kind in China, aims to tackle systemic bottlenecks, regulate service standards and establish a firm legal foundation for enhancing fertility support policies, lowering the costs of raising a family, and fostering a more child-friendly society overall.

"If the childcare issue isn't resolved, concerns about 'being able to afford birth but not upbringing' will persist," a Beijing-based mother of two working in finance told Beijing Review on the condition of anonymity. She calculated: Monthly fees for full-day childcare institutions in Beijing typically range from 6,000 yuan ($856) to 10,000 yuan ($1,427) per child, almost equivalent to an average white-collar worker's monthly salary.

The proposed legislation aims to tackle this issue. Yang Chenggang, Vice President of the China Population Association, said in an interview with Southern Weekly that the introduction of a unified legal framework helps streamline related policies.

"It not only creates a consistent framework for parenting subsidies and birth incentives across regions, but also turns them into an integrated fixture of social policy," he said.

At this pivotal moment of demographic transition, China is shaping its own approach—building a fertility support system grounded in its conditions and people's needs. Here, every decision to welcome new life is met with societal support, allowing hopes to take root and grow. BR

Printed edition title: OH, BABY!  

Copyedited by Elsbeth van Paridon 

Comments to taozihui@cicgamericas.com