China announced that married Chinese couples are now allowed to have up to 3 children, easing the child limit policy that restricted couples to just two children.

According to Reuters, the policy was eased so as to cope with risk faced by Chinese population due to the increase in aging population. In order to reduce economic risks stemming from the rapidly aging population, China introduced the two-child limit policy in 2016 after its one-child policy that had been practiced for decades.

However, the rapid fall in the working population has raised concerns as it is threatening and capable of disrupting the country’s future plans for the economy.

Data shows that there is a dramatic decline of birth, resulting from the high cost of child up-keep in China and rapid increase in the aging population leading to more concerns.

The 2020 census revealed that there were 12 million births last year, down from 14.65 million in 2019, an 18 percent decline, continuing China’s descent to a near six-decade low. While the number of older people also grew to 18.7 percent of the total, up from 13.26 percent a decade ago and about 10 percent in 2000.

The new policy change will come with “supportive measures, which will be conducive to improving our country’s population structure, fulfilling the country’s strategy of actively coping with an aging population.”

Other measures put in place include reduction of dowries, guaranteed legal interests on working women, reduction of educational cost for families and increased support for tax and housing as stated at the China Ruling Party by President Xi Jinping.