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So this is it -- China's reform blueprint for the next ten years. Some say it's the boldest cocktail of policy changes since ...
Deng Xiaoping decided to open the country to foreign investment three decades ago. But is it really? Most notable -- a loosening of the infamous one-child policy. Now if one parent is an only child, the couple can have two. Although the high cost of raising kids these days is still likely to dissuade many.
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EDITOR'S NOTE: THIS EDIT CONTAINS CONVERTED 4:3 MATERIAL. So this is it -- China's reform blueprint for the next ten years. Some say it's the boldest cocktail of policy changes since Deng Xiaoping decided to open the country to foreign investment three decades ago. But is it really? Most notable -- a loosening of the infamous one-child policy. Now if one parent is an only child, the couple can have two. Although the high cost of raising kids these days is still likely to dissuade many. (SOUNDBITE) (English) REUTERS REPORTER, JANE LANHEE LEE, SAYING: "Most of the 60-point plan promises more economic and financial reform but is short on deadlines or details. There are a lot of pledges to "deepen", "strengthen", and "accelerate" initiatives already under way. But also a few points that raise hope of real change." Like a pledge to reduce government influence on IPOs. Today listing in China is an onerous process requiring long wait times for approval by the securities regulator. And land reform that would allow farmers to sell their land more freely. Along with a wider property tax, that could unleash a new economic force and stabilize a market that's looking dangerously overheated. Authorities are also promising more market-driven pricing of resources such as water, oil, and gas -- which could impact the earnings of state-owned giants. Markets seem to be giving the government's plans their seal of approval. (SOUNDBITE) (English) GLOBAL MARKETS STRATEGIST, JPMORGAN ASSET MANAGEMENT, GEOFF LEWIS, SAYING: "Well I think what we are seeing is that private sector has already made considerable grounds over the last 10 years even in the absence of reforms. So I think with more central direction now, it will take China's economy to a new level of efficiency. We need to see emphasis on soft reforms like contract rights, like property rights. And also tackling the problems with the urban migrants that will do a lot for improving social stability." (SOUNDBITE) (English) REUTERS REPORTER, JANE LANHEE LEE, SAYING: "So what's next? Well, the regulations that bring about real change will be coming from the government agencies on the front lines. So people will be watching them closely." ENDS