The decision comes weeks after China's census report recently showed the population growing at its slowest rate in the last decade since the 1950s.
China has put an end to its two-child policy and announced that it would allow all families to have three children.
The decision comes weeks after China's census report recently showed the population growing at its slowest rate in the last decade since the 1950s.
Census data also showed China on par with ageing societies like Japan and Italy with a fertility rate of 1.3 children per woman for 2020 alone.
China's ruling Communist Party said it would allow all couples to have three children to boost the country's declining birth rates or address an impending demographic crisis.
Chinese studies have found that the rapidly rising number of older people in China could create a shortage of workers and strain the economy in the future. By 2050, one in three Chinese is predicted to be of retirement age.
A report in the official news agency Xinhua said that the policy change will come with supportive measures, which will fulfil the country's strategy of actively coping with an ageing population, improving the country's population structure and maintain the advantage with regards to human resources.
Xinhua also said that a new office for population monitoring and family development would be tasked with improving birth policy and establishing and enhancing the system of extraordinary family assistance for family planning.