China is set to allow married Chinese couples to have up to three children in a huge policy shift from the existing two-child limit.

As reported by Reuters, the decision was approved by officials during a Communist Party Politburo meeting chaired by Chinese President Xi Jinping on Monday and comes after data showed a nationwide decline in births.

Despite being the world's most populous country, state media has reported that the number of working-age people is falling too fast.

Per NBC News, census data showed China's working-age population declining, as the number of people aged 65+ increased. The result has been an ever-increasing strain on the economy and society.

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The Associated Press states that the ruling party has enforced birth limits since 1980, with the one-child policy being lifted five years ago.

Experts believe today's change has been made due to the fact that an increasingly aging population would threaten China's ambitious economic goals as a global technology leader and consumer society.

The official Xinhua News Agency has also reported that the nation's leaders have agreed to increase the retirement age throughout the country, in an effort to keep more people working and improve pension and health services on offer to the elderly.

NBC reports how families who have failed to abide by China's child policies have faced fines and even faced losing their jobs. However, AP also reports that many young couples in the country have been deterred from starting a family as a result of the increasing cost of raising a child.

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Last year, China reported 12 million births - which was down by nearly one-fifth from 2019. As a result, the fertility rate - that is, the average number of births per mother - stood at 1.3 in 2020.

In order to maintain the size of China's population, the fertility rate needs to stand at 2.1.

Additionally, AP reports that census data showed that the number of working-age people dropped from 70.1% to 63.3% over a decade.

China's ruling party claims to have prevented as many as 400 million potential births due to its child policies. They state that this has resulted in food and water shortages being averted.

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China to allow couples to have up to three children in major policy shift