AsianFin -- China’s government is ramping up social welfare spending to levels unseen in nearly two decades, pivoting from infrastructure investment to boost household consumption amid pressure from U.S. tariffs under Donald Trump.

On Monday, Beijing announced a new nationwide cash subsidy program for families to encourage childbirth, underscoring the policy shift. In the first half of 2025, spending on social programs — including education, employment, and social security — surged to nearly 5.7 trillion yuan ($795 billion), the highest for the period since records began in 2007.

That marks a 6.4% year-on-year increase, based on Bloomberg calculations using Ministry of Finance data. With trade talks ongoing, policymakers are expected to double down on domestic demand at a key economic planning meeting later this month.