China has launched its first nationwide child subsidy to boost declining birth rates, offering parents 3,600 yuan ($500) annually for each child under age three.

The policy, retroactive to January 2024, aims to support around 20 million families amid a growing demographic crisis.

Additional local incentives include larger payouts for third children and monthly allowances.

Despite ending the one-child policy nearly a decade ago, China’s birth rate remains low, with the population shrinking for a third consecutive year, the BBC has reported.

High child-rearing costs and an aging population continue to fuel Beijing’s concern over long-term demographic challenges.

Written by B.C. Begley