I don’t think this quite tells the whole story. This is what I found in Wikipedia at least:
China’s family planning policies began to be shaped by fears of overpopulation in the 1970s, and officials raised the age of marriage and called for fewer and more broadly spaced births.[3] A near-universal one-child limit was imposed in 1980 and written into the country’s constitution in 1982.[4][5] Numerous exceptions were established over time, and by 1984, only about 35.4% of the population was subject to the original restriction of the policy.[6]: 167 In the mid-1980s, rural parents were allowed to have a second child if the first was a daughter. It also allowed exceptions for some other groups, including ethnic minorities under 10 million people.[7] In 2015, the government raised the limit to two children, and in May 2021 to three.[8] In July 2021, it removed all limits,[9] shortly after implementing financial incentives to encourage individuals to have additional children
Capitalism doesn’t work on giving everyone a decent standard of living. It works on creating inequality that drives those people who perceive that they have less than others to do something about it. They might work multiple jobs and shorten their lifespan, creating profits for others. They might give up, relying on welfare systems and/or begging. They might become criminals, taking from others to get what they think they deserve.