Population ageing and the impacts of the universal two-child policy on China’s socio-economy

The two-child policy was officially proclaimed in the Guideline of the 13th Five-Year Plan and approved in March 2016. This article provides a detailed analysis of the Chinese demographic structure characterised by ageing with sub-replacement fertility. It argues that the universal two-child policy is timely and necessary for the New Normal economy. The policy has significance in relieving socio-economic pressure and promoting economic growth, for which it is not only a necessary premise but also a sufficient condition. Having reviewed the evolution of the demographic transition theory, this research undertakes a comparative analysis of different stages of demographic transition in different regions across the world. It further investigates the three stages of successful demographic transition in China. The universally adopted two-child policy, as it meets the requirements of demographic transition, is also inevitable for socio-economic development.