China's Big Moves: Free Preschool Education on the Horizon & Urgent Flood Control Measures

Key Points

China’s State Council, led by Premier Li Qiang, discussed three major initiatives on July 25, 2025: the potential for free preschool education, urgent flood and drought control measures, and a new approach to natural disaster assessment.
The government is adopting a “bottom-line and extreme-case thinking” for flood control, emphasizing the safety of people’s lives through better monitoring, early warnings, and proactive de-risking, especially during the critical period from mid-July to early August.
A new, more scientific and rigorous approach to natural disaster assessment aims to analyze shortcomings deeply to improve future prevention, mitigation, and relief, particularly for publicly impactful events.
The gradual implementation of free preschool education is a “significant welfare measure” that will involve local authorities, shared central and local government funding, and safeguards for disadvantaged children, while also focusing on improving teacher pay and education quality.

Key Directives for Flood Control
Directive	Description
Strengthen Responsibility	Beef up the chain of command and enhance coordination to ensure flood control is airtight.
People First, Always	Prioritize the safety of people’s lives through better monitoring, stronger early warning systems, and swift, decisive action to evacuate and minimize casualties.
Proactive De-Risking	Actively identify and eliminate risks in key areas, major infrastructure projects, and other vulnerable links to reduce potential losses.
Balance the Extremes	While managing floods, coordinate drought relief efforts in other areas, involving precise water allocation for agriculture and safe drinking water.

China’s plan for free preschool education is officially on the table, signaling a massive potential shift in the country’s social and economic landscape.

This major development was a key topic at a State Council executive meeting on July 25, 2025, presided over by Premier Li Qiang.

Alongside the groundbreaking education initiative, the meeting zeroed in on two other critical issues: a hyper-focused strategy for flood and drought control and a new playbook for assessing natural disasters.

For investors, founders, and anyone tracking China’s trajectory, these moves offer a clear look into Beijing’s top priorities: domestic stability and long-term human capital investment.

Let’s break down what happened.

Bracing for Impact: China’s “Bottom-Line” Approach to Flood Control

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The meeting didn’t mince words, calling the current period from mid-July to early August a “critical time for flood control.”

The government is calling for a mindset shift, urging officials to adopt “bottom-line and extreme-case thinking” and prepare for major floods and disasters.

This isn’t just about managing rain; it’s about protecting the economy, supply chains, and social order.

The key directives are clear and urgent:

Strengthen Responsibility: Beef up the chain of command and enhance coordination to ensure flood control is airtight.

People First, Always: The absolute priority is the safety of people’s lives. This means better monitoring, stronger early warning systems, and when disaster strikes, swift and decisive action to evacuate and minimize casualties.

Proactive De-Risking: Actively identify and eliminate risks in key areas, major infrastructure projects, and other vulnerable links to reduce potential losses.

Balance the Extremes: While managing floods, coordinate drought relief efforts in other areas. This involves precise water allocation to support agriculture and guarantee safe drinking water for all citizens.

Leveling Up: A New Playbook for Natural Disaster Assessment

Natural Disaster Assessment Focus
Aspect	Description
Goal	More scientific, rigorous, and practical assessment to improve future disaster prevention, mitigation, and relief.
Public Impact Events	Elevated and closely supervised investigations, prompt addressing of public concerns, and comprehensive rectifications.

China is also overhauling how it investigates and learns from natural disasters.

The goal is to be more scientific, rigorous, and practical in assessing what went wrong.

This isn’t just about filing a report; it’s about deeply analyzing shortcomings to improve future disaster prevention, mitigation, and relief capabilities.

Crucially, for disasters with a significant public impact, the meeting called for:

Elevated and closely supervised investigations.
Promptly addressing public concerns.
Implementing comprehensive rectifications across the board.

This move towards data-driven governance and public accountability could have ripple effects on everything from insurance risk models to new standards for infrastructure projects.

The Big One: China Explores Free Preschool for All

Preschool Education Plan Discussion Points
Key Area	Action/Consideration
Implementation	Guide local authorities to finalize their plans promptly.
Funding	Ensure full and timely allocation of subsidy funds based on shared central and local government financial burden.
Cost & Subsidy	Strengthen dynamic monitoring, scientifically calculate operational costs for kindergartens, and create fair subsidy policies for both public and private institutions.
Inclusivity	Include fundamental safeguards and support for children from economically disadvantaged families, orphans, and children with disabilities.
System Flexibility	Plan must be flexible, considering changes in school-age population and fiscal conditions; focus on basic and inclusive access.
Quality Improvement	Strengthen infrastructure, improve treatment and pay for kindergarten teachers, and enhance overall education quality.
Oversight	Strengthen supervision and management of all preschools, enforce regulations, standardize operations, and safeguard children’s health.

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This is the headline-grabber.

The council framed the gradual implementation of free preschool education as a “significant welfare measure benefiting millions of households and crucial for long-term development.”

It’s a massive investment in human capital. Here’s the game plan they discussed:

Get the Ball Rolling: Guide local authorities to finalize their implementation plans ASAP.

Show Me the Money: Ensure subsidy funds are allocated in full and on time based on a shared financial burden between central and local governments.

Smart Spending: Strengthen dynamic monitoring, scientifically calculate the real operational costs for kindergartens, and create fair subsidy policies that work for both public and private kindergartens.

Leave No Child Behind: The policy must include fundamental safeguards and support for children from economically disadvantaged families, orphans, and children with disabilities.

Future-Proofing the System: The plan must be flexible, considering factors like changes in the school-age population (a huge deal given China’s demographic shifts) and fiscal conditions. The focus is on ensuring basic and inclusive access for all.

Boosting Quality: It’s not just about access. The initiative includes strengthening infrastructure, improving the treatment and pay for kindergarten teachers, and enhancing the overall quality of education.

Tightening Oversight: Strengthen supervision and management of all preschools, enforce regulations, standardize operations, and effectively safeguard the physical and mental health of every child.

What This Means for Founders, Investors, and China Watchers

Strategic Implications of State Council Initiatives

Disaster Control: Signifies a commitment to de-risking the domestic environment and ensuring stability.
Universal Preschool: Represents a monumental investment in human capital for long-term economic and social strength.
Economic Opportunity: Potentially unlocks new opportunities in sectors like ed-tech and childcare services.
Overall Goal: Building a more resilient and educated society.
Significance: Critical factor for understanding China’s future policy directions and economic trajectory, particularly regarding social welfare and human capital.

The State Council’s agenda is a roadmap to China’s immediate and long-term priorities.

The intense focus on disaster control underscores a commitment to de-risking the domestic environment.

At the same time, the push for universal preschool is a monumental play for long-term economic and social strength, potentially unlocking new opportunities in ed-tech, childcare services, and related sectors.

Ultimately, these directives signal a strategic focus on building a more resilient and educated society—a critical factor for anyone watching China’s next moves, especially regarding policies like nationwide free preschool education.