This article focuses on the third Plenum that China just concluded. The most interesting point out of the reforms that took place was the loosening of the ‘one-child’ law.

I’ve got to admit, the Chinese government is incredibly inefficient. Compared to the Japanese government who couldn’t make any sort of pragmatic action because of the slight opposition from party X until Abe came along, the Chinese government’s been functioning well like a company, doing what it knows best for the majority of the people of China.

With the one-child law now loosened, China is trying to resolve the potential issue of a lack of supply of labour. With China’s labour force increasing, they can maintain their ‘USP’ as a production giant fueled by cheap labour.

What amazes me is how flexible they are about changing such a rooted legislation. According to one source, 76% of the people of China support the one-child policy.

It is also very interesting that China treats the one-child law like a tax policy. When the supply of labor starts running low, they managed to loosen the ‘tariff’ on having a child thereby incentivizing supply.

Nicely done China.

http://www.businessweek.com/articles/2013-11-15/china-plenum-outlines-ambitious-reforms-to-one-child-policy-banking-and-legal-system#r=nav-r-story

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