China’s Baby Benefits Are Tiny. That Isn’t the Point
Subsidies are a significant shift, even if they don’t spur a newborn boom.
China’s new baby benefits are tiny. They’re still worth doing.
Photographer: Na Bian/Bloomberg
No longer the most populous nation and confronted with projections that its citizenry will dwindle significantly in a couple of generations, China is trying something new. The message is more telling than the substance.
Beijing announced last week it will subsidize households to have children. Babies born after Jan. 1 this year will receive 3,600 yuan ($500) annually until age three. While not a large amount, it represents a further step away from rules imposed in the 1970s that constrained fertility. There’s much to be said for starting small and scaling up. It’s not hard to see the money being increased — and extended to all children.