China To Lift One Child Policy?

Chinese authorities are reportedly thinking about lifting the restriction that allow only certain couples from having a second child.

The report comes from the state-run People's Daily, which cited Wang Yuqing, a deputy director of the Committee of Population, Resources and Environment. Yuqing said that he favors a gradual opening of the two child per family policy. He believes that the limitations will be lifted by the end of the current 5 year plan, which runs from 2011-2015.

This could lead to a population boom Yuqing said, and those thoughts were echoed by analysts at Bank of America Merrill Lynch. "China's one-child policy might [have contributed] to high growth inthe past, but Chinese population is rapidly aging, [economic] growth isslowing and inflation is rising, due partially to this outdated policy," analysts said.

Citigroup also had thoughts on this, saying it would reduce the financial burdens of supporting the young and elderly. Citigroup also noted the country may raise the retirement age for women in conjunction with this. The retirement age for Chinese women is 55, compared with 60 for men.