The new nationwide child care subsidy will tackle the twin challenges of a rapidly aging population and falling birth rates. After three consecutive years of population decline, China must change course or risk facing a population crash. The government's new scheme will help reverse this trend by assisting up to 20 million families each year with their child care costs.
While the Chinese government's initiative is a welcome step in the right direction, much more is needed to reverse China's demographic trends. The sums involved are currently too small to impact either the birthrate or the other target of this policy, China's declining consumption rate. The policy, however, may lay the groundwork for more effective future initiatives.
There's a 50% chance that China's total population will be 891 million in 2075, according to the Metaculus prediction community.