In Europe, the system of support for families with children has long been considered one of the most advanced in the world. In Germany, parents receive at least €250 per month per child and in many regions: up to €300 and more.
This amount is accrued for each child under 18 and is intended to improve the quality of life and reduce financial barriers for families.
In France, the system is even more complex and well-thought-out: benefits are directly linked to the family’s income, the number of children, and the cost of childcare from crèches to primary school. There are special payments for the third and subsequent children, compensation for kindergarten, and tax breaks.
In Sweden, parents are provided with paid parental leave lasting almost a year and a half (480 days), flexibility in choosing a care schedule, and generous payments — up to 80% of the average income for both parents. This creates an environment where the birth and upbringing of a child is not a financial burden, but a socially recognized and supported choice.
China: $500 per Year for a Child Under 3
Against this backdrop, the Chinese government’s new initiative looks like an act of desperation.
From 1 January, 2025, China will begin paying 3,600 yuan (about $500 or €430) per year for each child under three, regardless of whether it is the first or third child. This measure is intended to speed up the birth rate, which has fallen sharply since the abolition of the one-child policy and has continued to decline for the third year in a row.
The program is designed for more than 20 million families with young children, and payments are provided both centrally (through a national platform) and partially for children born before 2025.
Why $500 is Incomparable to the European Standard of Support?
- Amount: Too Small
For comparison: €250 per month in Germany is €3,000 per year. That is, the European level of support is 6-7 times higher than in China.
- Lack of Infrastructure
European systems include access to crèches, kindergartens, flexible working conditions, long-term parental leave. China offers only a one-time or annual bonus, but without guarantees of work or educational support.
- Mistrust of Society
Experts, including Professor Emma Tsang from Yale University, warn that without long-term reforms in the education system, labour rights and social protection; this measure is unlikely to significantly increase the birth rate.
The impression is reinforced by the fact that regions in China have previously experimented with more generous payments. For example, Hohhot (Inner Mongolia) gave up to 100,000 yuan per child, and Shenyang gave 500 yuan per month. Compared with local pilots, the national program seems extremely stingy.
The Chinese Initiative: Desperate Gesture also for Ideological Reasons
The demographic crisis is reaching a new level: China’s population has been declining for the third year in a row, despite the abolition of the one-child policy and attempts to stimulate the birth rate.
The economic consequences are already noticeable: slow consumption, an aging population, and rising social costs. China is trying to increase consumer demand, and families with children are a key factor in this model.
Social expectations and pressures: young couples are afraid to have children because of high housing, education, and career prospects. The new measure symbolizes the recognition of the ineffectiveness of the previous policy, but in reality it looks like a weak response to a systemic problem.
What is Next & Why Europe is Teaching a Lesson?
In European countries, birth support is part of the social contract: protection of the family, women’s work, childhood, and equal opportunities. They understand that money is not the only incentive, but an important element of a broader strategy.
China, on the other hand, based on cash payments of only $500 a year, does not take into account the real costs of parents: private kindergartens, education, time for vacation and work. Without systemic solutions, the birth rate will continue to decline.
The Chinese program looks more like money sprinkled on a product long gone off than any robust social plan. In Europe, family support is balanced by infrastructure investments, cultural norms, and legislative protection.
Birth rate is a social priority in Europe, not a “payment for planned crying.”
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