China will now allow all couples to have a third child in major policy shift as it looks to arrest the shrinking birth rate. The country also has a considerable ageing population. An ageing population and shrinking birth rate does not have a positive impact on the long-term economic prospects of the country.
According to a statement in Xinhua News Agency, the Politburo during a meeting on Monday, also stressed that they will properly implement the delay in retirement age. "Allowing every couple to have three children and implementing related support policies will help improve the population's structure," the agency reported.
However, it is unclear when the move would take effect. It is likely to be soon as the meeting was held to discuss major policy measures in the five-year period starting this year.
China is now looking to reform its birth policy that allowed its citizens for many years to have only one child. In 2016, the country allowed couples to have a second child. As evinced from its policies, the country is looking to reverse the declining birthrate.
The Politburo also was in favour of lifting the retirement age in a phased manner. The meeting on Monday was presided over by President Xi Jinping. Increasing the age of retirement was also included in the current five-year plan.
According to Bloomberg Economics estimates, the slowdown in population growth means that China's population would peak in 2025. The annual average population growth of 0.53 per cent in the last decade was the lowest since the 1950s. Only 12 million babies were born last year, the lowest since 1961. The country currently has over 1.4 billion people.
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