The Communist Party’s Central Committee in China has allowed all couples to have two children, a move from the country’s long-standing one-child policy.
China Scraps One Child Policy To Boost Domestic Consumption
The Xinhua news agency cited a communiqué published at the end of a policy meeting that has been underway in Beijing for the last four days.
According to Wang Yukai, a professor at the Chinese Academy of Governance in Beijing, ‘This decision shows that the party has realized there is no time for China to delay in adjusting its population policy.”
“They decided against waiting for the legislation to pass next year and instead opted to implement the new policy now.”
President Xi is at the forefront of the five-year economic plan designed to slow down the economy after three decades of rigorous growth.
It is intended that the plan will lead to double GDP growth and expansion in per capita through to 2020.
A rapid decline in birth rates poses a threat to China’s workforce and this could slow down economic growth and cause wages to hike up too fast, which could in turn force companies to move their businesses to other more affordable countries in Asia.
According to reports by Bloomberg, the number of Chinese aged between 15 and 64, who make up the country’s workforce, fell to its lowest in 2014, for the first time in more than two decades.
The country’s rapidly aging population also poses a threat to the economy, with the United Nations projecting that the number of Chinese aged 60 and above is set to grow more than twice in the next 25 years. The graying of China could see health-care costs skyrocket to historical levels.
China is in the midst of an economic transition as it tries to change its economy from an export dependent one to an economy that is driven by consumerism, innovation and services.