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Chinese city offers subsidies to encourage families to have more children

  • Couples in Panzhihua, Sichuan province, will be able to claim a monthly allowance of US$77 for second and third children
  • It comes after Premier Li Keqiang pledges to ease the burden of childcare, saying population issue is ‘crucial’ to nation’s development

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China is trying to turn around a declining birth rate, but the cost of raising children could deter people from having bigger families. Photo: Xinhua

A city in Sichuan province has become the first in China to offer subsidies to help families raise more children, as the country tries to boost the birth rate.

China announced a major policy shift in May, allowing couples to have up to three children – scrapping the previous two-child limit – amid concerns about its rapidly ageing population.

Authorities in Panzhihua, a city in the southwestern province, on Wednesday said parents would be able to claim a monthly allowance of 500 yuan (US$77) per child for a second or third baby up to the age of three.

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They will also get access to free hospital maternity care and employers and state-owned companies in the city are being encouraged to offer childcare services.

The move comes after Premier Li Keqiang on Tuesday pledged to ease the burden of childcare to encourage more births.

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“The country should improve the quality of … services, build an inclusive childcare system, and economic and social policies that cohere with family planning policies,” Li said.

“The population issue is crucial to China’s fundamental, overall and strategic development.”

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