Recently, in various parts of China, there has been a series of suspensions and even withdrawals of previously issued fertility incentives or subsidies aimed at encouraging families to have a second or third child. Informed sources pointed out that local finances are tight, making it difficult for families with two children to receive the promised government subsidies, a situation that has spread to several cities.
On November 5th, a netizen in Lu’an, Anhui Province, posted that the subsidy she applied for her second child was suddenly suspended. The expected funds were not received, instead, she received a phone call from the local health commission notifying her, “All second child subsidies in the province will be reclaimed, deducted from childcare subsidies that have been distributed, and unreleased subsidies will be directly cut off.”
After the news spread, netizens in Lu’an, Bengbu, Chuzhou, Huainan, and other places successively reported similar situations, indicating that there were subsidy suspensions during the implementation of new birth policies. Online posts indicated that these subsidies, typically amounting to thousands of RMB, were originally meant to encourage childbirth. Some netizens commented that the local government suddenly stopped providing a 2,000 RMB subsidy for the second child, citing it as an order from the higher provincial authorities, even requiring the recovery of already distributed amounts.
A recently retired civil servant, Ms. Liu in Zhengzhou, Henan, told reporters that the local government indeed faces financial constraints and is unable to provide monetary incentives to encourage childbirth. She said, “Where does the government have money now? Even environmental workers have not been paid for several months, and many district governments are borrowing money to pay salaries. These incentives are just for show; the slogans are loud, but in reality, they are not followed through.”
She added that similar situations have occurred not only in Zhengzhou but also in other cities, saying, “My nephew is in Wuhan, a colleague in their company had a second child, and after a few months, they still haven’t received the incentive money.”
Many people in different regions have encountered similar experiences. Ms. Huang, a visitor from Linyi, Shandong, told reporters, “A friend of mine had applied and planned for the subsidy before, but suddenly it was announced as canceled by the government. We all feel disappointed. When calling for clarification, all we get is ‘wait for further notice,’ without a clear answer. How can the Communist Party have credibility?”
On July 28th of this year, the state-run Xinhua News Agency reported that the Communist Party of China introduced the “Childcare Subsidy System Implementation Plan,” which started distributing an annual childcare subsidy of 3,600 RMB per child for infants and toddlers aged 0 to 3, applicable to first, second, and third child families.
A sociologist from Tsinghua University, Li Jia, told reporters that the difficulty of aligning local and national subsidy policies puts pressure on local finances. “Some provinces and cities had set higher standards for the previously established ‘second child incentive funds’ or ‘one-time subsidy for the third child’ compared to the new national system, leaving the difference to be borne by the local authorities. If adjustments are not made promptly, situations like ‘issued and then withdrawn’ or suspensions may occur.”
Li Jia believes that local government officials often make statements early on to “align with the central government,” but later find themselves unable to fulfill promises due to financial constraints. “This is the peculiar phenomenon of the Chinese (Communist Party) officialdom, with slogans coming first and implementation lagging behind. When finances are tight, policies are deleted, and even distributed subsidies have to be recovered.”
To counter the declining birth rate, the Chinese government has successively relaxed its two-child and three-child policies in recent years, along with implementing various incentives. Since 2022, many places have introduced subsidies, incentive funds, priority enrollment, and tax reductions for families with second and third children, claiming to “promote long-term balanced population development.”
Interviews with netizens from Guangdong and Shandong yielded almost unanimous responses: “We haven’t heard of anyone receiving the second child incentive here, whether it’s a thousand or several thousand RMB, it’s all empty promises.”
A population policy researcher in Beijing, who chose to remain anonymous, pointed out that once subsidy programs are suspended or canceled, the effectiveness of the government’s pro-birth policies will be weakened. “The government encourages childbirth, but with reduced financial support, the trust of families in the policies will decrease, not only undermining government credibility but also likely leading to social discontent.”
As of now, Lu’an in Anhui and other district governments have not explained the specific basis for reclaiming subsidies publicly. Commentators believe that this policy contraction indicates a decrease in local financial support for population policies, potentially leading to the continued expansion of similar situations in the future.