IS IT TOO LATE FOR CHINA TO AVOID AN AGEING CRISIS?
China's new leaders are close to abandoning the country's one-child policy, belatedly moving to avert an ageing crunch as the work force goes into sharp decline.
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 and has led to 336 million abortions and 222 million sterilizations, often badly executed in poor regions. Recent abuses have caused uproar, with photos circulating on the Chinese internet of a young mother lying beside a fully formed baby after she had been seized by police for failing to pay the "social compensation fee" for an illegal child. She was forced to undergo an abortion just before her natural birth.
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. So any baby boom over the next few years may come too late.

