China Will Scrap One-Child Policy as Aging Crisis Looms
The official news agency Xinhua has reported that China’s Family Planning Commission is studying proposals to lift the ban on a second child, if either parent is an only child. The body’s spokesman said aim is to “improve” family policy, confirming leaks to Chinese newspapers that a major shift is in the works. The new rules are expected to come into force early next year, and may be extended to cover all families by 2015. Jun Ma from Deutsche Bank said the new policies should shore up the pension system and inject stimulus as China’s growth sputters. “As tens of millions of sibling-less people in China are now entering their child-bearing age, we expect this policy shift would induce a baby boom,” he said. The one-child policy dates back to 1971 in its original form. Premier Li Keqiang clearly views the policy an anachronism at a time when China is running out of workers, and faces a demographic time-bomb. There are currently five workers for every pensioner. This ratio will fall to two by 2035.
Source/more: London Telegraph