Abstract: The implementation of two child policy in China will help to improve the population structure and sustainable development of economy and society. The smooth implementation of this policy relies on the family's will of production. The state should improve related social law rules and fully protect the rights of children, so as to achieve the goal of two child policy. The government should also create an institutional environment where the women's equal rights are protected, provide for reasonable leaves related to production and allocate the responsibilities among state, employers and employees properly. With the growth of babies, more welfare including pre-school and care facilities should be provided for them, which is an important issue in two child policy. The welfare system of children will become a key area in social security system in the future.