China is trying to confront the serious problems caused by years of only allowing one or two children per family

Here are some of the problems this created:

Human trafficking of females because there aren't enough women to go around

No one to take care of older Chinese people

Angry men without mates killing children in Kindergarten and public schools in general.

And various other serious social problems that Chinese society is encountering.

The positive side of this is they are not dealing with overpopulation and so the average person is wealthier as a direct result. 

But, the social problems are now outweighing the average wealth of the average Chinese person caused by reducing birth rates in the first place.