Grappling with a major demographic crisis and an economic slowdown, the Chinese Communist Party on Thursday scrapped its controversial three decade-long one-child policy, allowing all couples in the world’s most populous nation to have two children.

“China abandons one-child policy,” Xinhua, China’s official news agency, said on Twitter, citing a communique by the Communist Party of China relaxing the rigid policy by permitting all couples to have two children, which has huge implications globally.

Thursday’s announcement comes at the end of the four-day CPC plenary session chaired by President Xi Jinping amid growing concern over rising numbers of elderly people and a declining labour force, putting the world’s second largest economy under severe strain.

The change of policy, intended to balance population development and address the challenge of an ageing population, must be approved by the National People’s Congress before being implemented.