Expert: Two-child policy will drive China's economic growth

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China ended its long-time one-child policy in 2016, and allowed couple to have two children. This triggered wide discussion among the public. Chen Wei, a professor of Renmin University of China, said the new two-child policy will drive the growth of China’s economy.

China's population structure has entered a stage of New Normal, referring to a low birth rate and an increasingly aging population. This also means China's labor force is decreasing.

Chen told CGTN’s Hu Chao that in five years, the new policy will generate 20 million new babies. They will contribute to increase the domestic demand, including the education market and real-estate market.

Chen thinks comprehensive economic reforms are the key to the development of China's economy, and the population will contribute as a basis to support the economy.

According to CGTN’s Hu Chao, who spoke to some Beijing residents when the change was first announced in 2015, many people were cautiously optimistic about the new two-child policy.

Some think it was a necessary change while others planned to stick to the one-child format.

Experts believe the government needs to improve related laws and regulations before the new two-child policy can be fully implemented.

But they also believe the country will offer favorable policies to encourage Chinese couples to expand their families.