China has launched a nationwide childcare subsidy program starting January 1, 2025, offering parents 3,600 yuan (approximately $500) annually for each child under the age of three. This initiative aims to address the country's declining birthrate and demographic challenges by providing direct cash transfers to families. The subsidy will be distributed equally across all eligible families under the three-child policy, without restrictions based on region, ethnicity, or number of children. The central government has allocated an initial budget of around 90 billion yuan (about $12.5 billion) for the program in 2025. Provinces will determine specific disbursement schedules based on local circumstances. Additionally, China plans to roll out free preschool education nationwide as part of broader efforts to support families and encourage childbirth. This is the first large-scale, inclusive, and direct cash subsidy for public welfare since the founding of the People's Republic of China. The policy follows the principle of doing what is feasible within China's socioeconomic context and aims to alleviate financial pressures on families while potentially boosting consumption. The program's rollout is expected to begin in late August 2025, with full access anticipated by the end of that month. The subsidy is part of a broader strategy to counteract the demographic crisis, as China's birth population dropped to 9.54 million in 2024, roughly half of the 2016 figure.