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Thursday, November 21, 2013

China's Economic Blueprint: Who Wins? Who Loses?

 The Wall Street Journal - Nov. 21, 2013 

Business could win big if China follows through on its pledges to give the market a greater role in the world's second-biggest economy.  The Chinese Communist Party's leaders last week issued a broad blueprint for overhaul over the next decade that calls for empowering consumers and easing Beijing's grip on key industries long controlled by the state. Its sweeping goals include easing barriers for foreign capital in some industries,...

Business could win big if China follows through on its pledges to give the market a greater role in the world's second-biggest economy.

The Chinese Communist Party's leaders last week issued a broad blueprint for overhaul over the next decade that calls for empowering consumers and easing Beijing's grip on key industries long controlled by the state. Its sweeping goals include easing barriers for foreign capital in some industries, increasing the involvement of private investors in state-dominated businesses and giving the country's vast rural population greater access to money.

Over the long term, one significant move—a call to ease China's one-child policy—signals a willingness to grapple with the mounting pressures of an aging society. Many demographers say even more dramatic moves are needed.

But Beijing's statement suggests that leaders want to ensure that China has a stable pool of labor—and remains a robust growth market—for years to come.

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