The State Council Information Office (SCIO) holds a policy briefing on promoting free preschool education in a phased way, in Beijing, capital of China, Aug. 7, 2025. (Photo by Liu Jian/Xinhua)

China's phased free preschool education policy will cover all children in their final year of kindergartens nationwide, benefiting around 12 million people this autumn semester, a Ministry of Finance official said at a press briefing on Thursday.

The policy is expected to save household spending by about 20 billion yuan (about 2.8 billion U.S. dollars) in this autumn semester alone, Vice Minister of Finance Guo Tingting said.

The exempted fees will be covered jointly by central and local government, with the central government bearing the lion's share, Guo said, adding that central and western regions will receive greater support.

Guo also noted that China will improve the policy in due course to ensure more children can benefit.

China announced guidelines for the phased implementation of free preschool education earlier this week. Under the guidelines, fees for children attending private kindergartens will be reduced to match the exemptions offered at local public kindergartens.

Public response has been swift and positive, especially among families with young children.

A working mother in Beijing, surnamed Wang, said her family's monthly kindergarten expenses are a heavy burden. "If preschool becomes free, it would make a real difference, and could even encourage families like mine to have another child."

"How lucky I am!" a netizen from Guangzhou, capital of south China's Guangdong Province, posted on the Weibo social media platform. "My child will enter the final year of kindergarten next month. Even though public kindergarten fees aren't high month to month, they still add up to around 10,000 yuan (about 1,401 U.S. dollars) a year. This policy will save us a lot."

To ensure a smooth rollout of the regulations this September, Liu Yuguang, a senior official from the Ministry of Education, said at the press conference that all necessary preparations, such as staff training and policy promotion, are on track to be completed by the end of August.

Liu added that the fee exemption will complement existing financial aid programs for vulnerable children, including those from financially disadvantaged families, orphans and children with disabilities.

"These children have long been covered under a financial aid system," he said. "This new policy will work in tandem with existing support to ensure no child is left behind."

China's push for phased free preschool education is part of a larger response to tackle its demographic challenges, which include a shrinking number of newborns and a rapidly aging population.

In recent years, the country has introduced a series of support measures in areas such as childbirth, child-rearing, education, healthcare and housing, all aimed at fostering a more birth-friendly society.

Last week, China introduced a nationwide child care subsidy program slated to begin in 2025, which will provide families with an annual subsidy of 3,600 yuan for each child under the age of three.

These subsidies, benefiting more than 20 million families annually, will be exempt from individual income tax and will not be counted as household or individual income when determining eligibility for welfare assistance, such as subsistence allowances or allowances for people living in extreme difficulty.

A working mother in Beijing, surnamed Meng, said the latest policies mark a real step toward stronger economic support for families.

"I hope that initiatives like child care subsidies and free preschool not only ease the financial burden on parents, but also help foster a more family-friendly society, one where more young people feel confident about starting and raising a family," she added.