"The State advocates that one couple can give birth to two children," a draft amendment submitted for review at the bi-monthly session of the National People's Congress Standing Committee said, amid reports that not many of 100 million couples who could benefit from the new policy were interested to have a second child in view of growing costs of bringing up an additional kid.
Li Bin, head of National Health and Family Planning Commission (NHFPC), said the CPC's decision was made to adapt to the transition of China's population from young to old currently underway.
In order to implement the decision, the top legislature must amend the family planning law which took effect in 2002.
Under the current law, citizens who marry late and delay childbearing may be entitled to longer nuptial and maternity leaves. Couples who volunteer to have only one child in their lifetime enjoy rewards.
Also Read
The three-and-a-half-decade-old one child policy has been changed by the ruling Communist Party of China as the country faced grim demographic crisis.
China has a population of 1.3 billion, the largest of any country in the world.
The number of people aged 60 or over in China reached 212 million at the end of 2014, accounting for 15.5 per cent of the country's population, with the number of disabled elderly people approaching 40 million, statistics from the National Health and Family Planning Commission showed, state-run Xinhua news agency reported.
By 2050, China is expected to have nearly 500 million people over 60, exceeding the population of the US, according to the UN predictions.
(Reopens FGN5)
The change of policy is intended to balance population development and address the challenge of an ageing population, according to a communique issued after key meeting.
Experts believe that being able to have two children will benefit about 100 million families around the country but not many showed interest to due heavy costs in bringing up a second child.
The adopting of the two-child policy is also expected to boost China's economic growth rate by about 0.5 per cent, he said.
The ageing population has brought greater demand for elderly care services.
According to a report published by Pricewaterhouse Coopers earlier this month, Chinese people will spend over USD 1.54 trillion from 2016 to 2020 on elderly care, increasing 17 per cent per year.
While clarifying the draft, Li said people who have been receiving rewards and assistance before the law was amended will continue to receive it afterwards.
The draft also allows couples of a reproductive age to make their own choice whether to adopt contraceptive methods.
The draft no longer stipulates that couples shall accept technical services and guidance for family planning.
Medical institutes will also be able to employ assisted reproductive technology after being authorized based on their personnel, facilities and ethical management, according to the draft.
Those involved in such actions would receive punishment ranging from warnings and fines to criminal penalties, according to the draft.
China's family planning policy was first introduced in the 1970s to rein in the surging population.
Since its implementation, official claim the policy has resulted in an estimated reduction of some 400 million people in China, but it was also blamed for generating a number of social problems, mainly a decreasing labour force and an ageing population.