China expands fiscal support to boost births

China plans about 180 billion yuan in 2026 measures to support childbearing, and official population data due Jan. 19 is expected to show a fourth consecutive annual decline.

China is rolling out a wide-ranging fiscal push to support births as official population data due on January 19 is expected to show a fourth straight annual decline. Authorities estimate the potential cost at about 180 billion yuan in 2026, covering a national child subsidy and related insurance and medical reimbursements. The government has pledged that women will have no out-of-pocket pregnancy expenses in 2026, with pregnancy care and IVF to be reimbursed under the national medical insurance fund. Demographers in the reporting note that low fertility is a persistent regional challenge and social norms around family size have shifted. Key points: - Reuters estimates the 2026 cost at roughly 180 billion yuan, including the national child subsidy and expected insurance payments. - A nationwide childcare allowance introduced in 2025 pays 3,600 yuan a year per child under three; about 30 million children are under three and state media report more than 24 million applications so far. - The government announced full reimbursement of pregnancy-related medical costs in 2026, with Trivium China estimating reimbursements could add about 70 billion yuan to medical insurance payouts next year. - From January 1 a 13% value-added tax was applied to contraceptives, moving them into routine consumer taxation as reported in the article. - Demographers cited say China’s fertility rate is about 1 birth per woman, that similar pro-natalist policies in East Asia have had limited success, and that long-term social and economic factors affect birth decisions. Summary: China’s increased fiscal support is framed as part of an economic strategy to ease childbearing costs and address an ageing population that could weigh on consumption and pension budgets. Experts quoted in the article warn the measures may have limited impact without broader changes to employment, education costs and social norms. Official population figures due on January 19 are the next key public data point.