Recently, a series of policy shifts have made it feel like China is entering a whole new phase—grain-producing regions are finally going to make money, 996 is being cracked down on, childcare subsidies are actually happening, and even holidays are increasing! These seemingly unrelated adjustments all point in the same direction: China is shifting from an “export-at-all-costs“ model to a new approach focused on “making life better for its own people.“
1. Farmers Won’t Have to Be “Poor with Nothing But Grain“ Anymore
(1) Grain-Producing Regions: Growing 78% of the Country’s Food, But Getting Poorer?
China has 13 major grain-producing provinces (like Heilongjiang, Henan, and Shandong), which account for 77.9% of the nation’s grain output. Yet, their share of national GDP has dropped from 56.2% to 51.8%.
Meanwhile, the seven major grain-consuming regions (Beijing, Shanghai, Guangdong, etc.) produce only 4.3% of the country’s grain, but their GDP share has surged to 30.8%.
In short: Regions that grow food are getting poorer, while those that don’t are getting richer.
(2) 2025’s New Policy: Wealthy Provinces Must “Send Red Envelopes“ to Farming Regions
This year’s Government Work Report proposed a “cross-provincial horizontal compensation mechanism“ between grain-producing and grain-consuming regions. Translation: Rich provinces like Guangdong and Zhejiang will have to pay subsidies to farming provinces like Heilongjiang and Henan.
Why?
- Growing grain isn’t profitable—a cornfield might earn 500 RMB per acre, while a factory can make millions.
- Local governments prefer industry—agriculture takes up land and water but doesn’t boost revenue like factories or real estate.
- Food security can’t rely on goodwill alone—if farming regions stay poor, who will keep growing food?
(3) The Most Shocking Stat: 7 Major Grain-Consuming Regions Produce Only 4.3% of the Country’s Grain!
This means Beijing, Shanghai, and Guangdong rely almost entirely on shipped-in grain. If logistics were ever disrupted (due to disasters or conflicts), these places could face food shortages.
So, this policy isn’t just about “helping the poor“—it’s about letting farming regions develop their economies too, reducing reliance on long-distance grain transport and making China’s food supply more secure.
2. Is 996 Finally Being Killed Off? DJI and Midea Are Now “Forcing Employees to Clock Out“
(1) From “Endless Overtime“ to “Anti-Overwork“
In the 1980s and 90s, factory workers in Shenzhen often worked 30 days straight, sometimes even sleeping on the production line. Now, companies like DJI kick people out at 9 PM, Midea enforces a 6:20 PM closing time, and Haier shuts down its cafeteria on Saturdays…
Some claim this is because of new EU rules (banning forced labor products), but in reality:
- The EU policy doesn’t take effect until 2027—it’s not even enforceable yet.
- China is proactively reducing overtime—because workers are fed up with 996, and people need free time to actually spend money.
(2) 2025 Changes: More Holidays, High School Weekends, and a Crackdown on “Involution“
- Two extra vacation days (8 days for Spring Festival, 5 for Labor Day)—the fourth such adjustment since 1949.
- High schools must adopt two-day weekends—starting Fall 2025, weekend classes are banned nationwide.
- The central government is explicitly targeting “involution“—no more pointless overtime, and paid leave is being enforced.
Why the sudden focus on rest?
Because China’s per capita GDP has hit $13,400—people have money but no time to spend it. To boost domestic consumption, cutting mortgages and handing out subsidies isn’t enough—people need free time to actually go shopping!
3. Childcare Subsidies Are Finally Here! 10,000 RMB for One Child, 160,000 RMB for Three
(1) 2025 Government Work Report Introduces “Childcare Subsidies“ for the First Time
Previously, only local governments experimented with payments (like Panzhihua’s 500 RMB/month per child). Now, the central government is rolling it out nationwide.
Hohhot was the first to act:
- 10,000 RMB for the first child (lump sum).
- 50,000 RMB for the second child (paid over 5 years).
- 100,000 RMB for the third child (paid over 10 years).
Do the math—having three kids gets you 160,000 RMB!
(2) China’s Population Crisis is Worse Than You Think
- Population has declined for three straight years (2022-2024), shrinking by over 4 million.
- By 2025, China’s newborn numbers may fall below the combined total of the U.S., Canada, U.K., Australia, and New Zealand.
- At this rate, China’s population could drop below 750 million in 80 years (and keep falling).
(3) Why Only Now? Because It’s Almost Too Late
In the past, people thought “China has so many people, no worries.“ But now:
- Young people don’t want kids (high housing costs, expensive education, exhausting jobs).
- Western birth rates are higher than China’s—if this continues, China’s demographic advantage will disappear.
So, cash incentives are just the start—expect more policies (like housing support and childcare services) soon.
Conclusion: China is Entering a New Era—Where Ordinary People Can Live Better
- Grain-producing regions will finally make money—wealthy provinces must subsidize them so farming isn’t a losing game.
- 996 culture is being dismantled—more holidays, high school weekends, and a crackdown on meaningless overtime.
- Cash for babies—10,000 RMB for one child, up to 160,000 RMB for three, with even bigger incentives likely later.
These changes show that China isn’t just chasing GDP growth anymore—it’s making life easier and more dignified for ordinary people. The policies are still new, and their impact remains to be seen, but the direction is clear: A new era has truly arrived.