China plans to gradually implement free preschool education
In an effort to counteract a declining population and stabilize the workforce, the Chinese government has announced several key policies aimed at making child-rearing more affordable for families.
From autumn 2025, China will provide free pre-school education, reducing early childcare costs for families [4]. This initiative is part of the government's aim to ease the financial burden on families and encourage higher birth rates.
Alongside free pre-school education, a child subsidy program has been announced, offering direct financial support to families with children [2]. The policy focuses on maintaining a stable population size and mitigating the economic risks of an aging population rather than aggressively expanding the population.
These initiatives respond to demographic data showing China's population has been shrinking since 2022. Births have been insufficient to replace the aging workforce and sustain economic growth. High childcare and education costs are significant factors discouraging births, so these subsidies and educational support aim to remove some of those financial barriers.
Last week, the Chinese government also announced an annual allowance of 420 euros per child aged three months. This allowance is aimed at stimulating consumption and combating the emerging demographic crisis in China [1].
It's worth noting that school attendance is mandatory from the age of 6 in China, while kindergarten is not mandatory [3]. Public primary schools, colleges, and high schools are free in China. However, the fees for childcare and education in the final year of public kindergarten will be abolished from the academic year 2025.
These measures come as the United Nations demographic models predict that the Chinese population could drop from around 1.4 billion today to about 800 million people by 2100 [2]. By 2040, a large portion of the population is forecasted to be aged over 60, increasing dependency ratios and economic pressure on working-age citizens [3].
In addition to these policies, China is also investing heavily in technologies like artificial intelligence and automation to offset the decreasing labor supply and maintain economic productivity despite a shrinking workforce [1][3]. However, the fundamental demographic challenges remain significant.
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Education and self-development policies, such as the announcement of free pre-school education and a child subsidy program, are aimed at addressing the declining population and workforce in China, reducing financial burdens on families. Simultaneously, policy and legislation, like the annual allowance of 420 euros per child aged three months, are implemented to combat the emerging demographic crisis and stimulate consumption. overall, these measures play a crucial role in addressing the general news of China's shrinking population and aging workforce.
