China's Free Preschool Education Policy to Benefit Millions

China's phased free preschool education policy is set to positively impact approximately 12 million students starting in the upcoming autumn semester. This initiative is projected to reduce household expenses by around 20 billion yuan.

The policy, as explained by Vice-Minister of Finance Guo Tingting, exempts care and education fees for all children in their final year of kindergarten. This applies irrespective of their location, whether urban or rural, and whether they attend public or private institutions. The waived amount is determined by the government-approved standard fee for public kindergartens. Private kindergartens that charge fees exceeding the local public kindergarten rates may still charge the difference.

For instance, if the standard public kindergarten fees are 500 yuan per month, and a private kindergarten charges 800 yuan, the final-year students in public kindergartens would pay nothing for the autumn semester. However, those in the private kindergarten would still be responsible for 300 yuan monthly.

This policy is considered a significant step in preschool education, designed to address the needs of the population, improve livelihoods, promote balanced population development, ensure educational equality, and foster a supportive environment for childbirth. The recently introduced subsidies for families with children under 3 years old are intended to complement the free preschool education policy, further reducing the financial burden on families.

The cost of the fee waiver will be shared between the central and local governments. The central government will cover 80 percent of the costs in western regions, 60 percent in central regions, and 50 percent in eastern regions, with local governments covering the remaining expenses. The Ministry of Finance will closely monitor the policy's implementation and make adjustments in collaboration with the Ministry of Education, based on kindergarten enrollment and government finances.

The Ministry of Finance plans to allocate central funds for the policy in the coming days and will work with the Education Ministry to guide local authorities in securing and allocating funds to ensure the policy's effective implementation without disrupting kindergarten operations. Government spending on preschool education has significantly increased, growing from 86.2 billion yuan in 2013 to 315 billion yuan in 2023, with an annual growth rate of 13.8 percent.

In 2024, the gross enrollment rate in China's preschool education reached 92 percent, aligning with the average level of high-income countries. The Ministry of Education will continue its efforts to ensure the standardized operation of kindergartens and enhance their overall quality.