China hopes the payments will convince couples to have more children. Parents say that is highly unlikely to happen
When Wang Yuyan first heard about China’s new national child subsidy, she was happy about receiving some extra support. But the new mother’s excitement quickly faded when she realised the money was barely enough to cover the rising cost of baby diapers and milk formula.
The Hangzhou resident said the diapers she buys for her 4-month-old had gone up from 143 yuan (US$19.90) to 158 yuan just in the few weeks since the government announced the new policy in July.
Overall, Wang now spends nearly 4,000 yuan a month on basic necessities for her child – from vaccinations to formula and clothes. In that context, the new subsidy of 3,600 yuan per year for each child under the age of 3 seems like a drop in the ocean.
“I don’t plan on having a second child,” she said. “The costs are way too high.”
