In the face of a looming demographic crisis from an aging population and falling birthrates, China announced on Monday that married couples may now have three children, up from two. The decision — made at the highest levels of Chinese politics — includes new supports for education and child-rearing.
The outlook: Can the Chinese government effectively encourage people to have more babies? Falling birthrates are a global phenomenon, and China also faces a declining population of women of peak childbearing age. It may take more than a green light and new supports from the government. Fewer babies and an aging population remain macro risks for sectors including Chinese pensions and healthcare.