Shanghai, China
Shanghai, ChinaLiron Almog/Flash 90

The Chinese government announced Monday that it would raise the limit on the number of children families are allowed to have to three from the current two.

The measure is meant to reverse the trend of China's population rapidly aging, which is straining the nation's economy.

China instituted a one-child policy in 1980 which legally banned couples from having more than one child. The policy was changed in 2015 when families were allowed to have two children for the first time.

However, the birth rate in China continued to decline, leading to the decision to further raise the limits on children.

Couples in China have cited the high cost of raising a child, need to care for their elderly parents, and possible loss of income as reasons for not having children.

The decision was made at a meeting of China's ruling party which was headed by President Xi Jinping. The official Xinhua News Agency said party leaders agreed to “implement the policy that one couple can have three children and to support measures are conducive to improving China’s population structure.”

At the meeting, it was also decided to raise the retirement age in China to maintain the country's workforce.