In recent years, with the decline of the Chinese economy, more and more young people are choosing to “lying flat,” becoming the “sang” generation (not dating, not marrying, not buying a house, not having children), leading to a sharp decrease in the birth rate. Despite the Chinese Communist Party’s repeated efforts to boost childbirth, it has proven to be ineffective. The latest news reveals that the Ministry of Finance has allocated 99.9 billion yuan as childcare subsidies for the year 2026, sparking discussions and debates.
According to the announcement made by the Ministry of Finance of the Chinese Communist Party on June 2nd, a total of 99.9 billion yuan has been allocated as childcare subsidies for the year 2026, representing a 10.6% increase from the previous year, in support of distributing childcare subsidies to eligible infants and young children nationwide. It is estimated that a total of approximately 110 billion yuan will be allocated for subsidies at all levels of government throughout the year.
The CCP’s pro-natal policies have once again stirred up discussions on the internet.
Netizens commented, “A drop in the ocean. With 25 million newborns under the age of 3 nationwide, each child only receives 4000 yuan per year. Is that enough for formula?” “Addressing the symptoms, not the root cause.” “Are there really people who would have more children just because of childcare subsidies?” “It’s too late. The timing for implementing the two-child policy was delayed, and the distribution of subsidies came too late as well.”
Geng Xiangshun, founder of the young generation’s organization “Zhi Xin Qing Nian” and a prominent Weibo influencer, analyzed in a post, “The high cost, pressure, and time-consuming nature of raising children are the main obstacles preventing young people from having kids. Although there are childcare subsidies now, compared to the financial and time investments required to raise children, the subsidies are essentially a drop in the bucket. They may be useful for those who have already decided to have children, but for those who are still hesitant or reluctant, the subsidies are not significant enough to boost their willingness to have children.”
Geng Xiangshun listed several reasons for the low fertility desire among young people, including low income, unaffordability due to high housing prices and living costs, high expenses associated with raising children and education. Young people outside of the system and from non-affluent families, especially those working in private companies, face unstable employment, lack of income security, difficulties in finding employment in middle age, low expectations for future work and economic income, leading to hesitations in having children or having more than one child.
In July 2025, the Chinese Communist Party introduced the “Childcare Subsidy System Implementation Plan,” providing an annual subsidy of 3600 yuan for babies born after January 1, 2025, until they reach three years old. However, in an ironic twist, against the backdrop of the comprehensive implementation of the policy allowing for three children per family, China recorded the lowest annual birth rate since the CCP was established in 1949, with 7.92 million births in 2025.
According to a report by the Australian Broadcasting Corporation, Associate Professor Feng Chongyi, a China studies expert at the University of Technology Sydney, stated that the population decline in China since 2022 is a very serious and even “frightening” reversal.
Feng Chongyi mentioned that without substantial systemic reforms, achieving a population rebound is nearly impossible. He noted that China’s current development model fails to create enough job opportunities and restore people’s confidence in the future, stating that “young people need to believe that their efforts will be rewarded, and that their careers can grow with an improvement in living standards.”