China Could Abolish One-Child Policy to Prove Reforms are Underway

China may significantly relax its one-child policy at end-2013 or early-2014 by allowing families to have two children if at least one parent is from a one-child family, reports the 21st Century Business Herald citing unnamed sources.

 

"We believe that the reform-minded president Xi and premier Li will use the opportunity of abolishing the one-child policy to build up their authority, show their determination in making changes and convince the Chinese people that they do have a roadmap for reforms," says a BofA Merrill Lynch Global Research report.

 

Introduced in the late 1970s, the one-child policy was created by the Chinese government to alleviate social, economic, and environmental problems in China.

 

"We are optimistic that an end to the one-child policy will soon be confirmed," says the bank. The bank expects around 9.5 millions babies to be born as a result of such reform.

 

In its report "Post-leadership Change Reform: End of The One-Child Policy?" the bank predicted that the window for the population policy reform could be 4Q13 around the ruling party's annual meeting or 1Q14 around the people's congress meeting.

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