China’s plan to break the stranglehold of the state

China has launched the most radical reforms in more than 30 years, easing social controls and paving the way towards a free-market consumer economy.

Following the secretive Third Plenum of the 18th Central Committee of the Chinese Communist Party in Beijing a major meeting of the country's top policymakers China has launched "the most radical reform blitz in more than 30 years, unveiling a raft of measures to ease social controls and pave the way towards a free-market consumer economy", says Ambrose Evans-Pritchard in The Daily Telegraph. The relaxation of the one-child policy has sparked most interest in the West, but it will have "little economic impact". Fertility rates are already collapsing in the Far East and China's demographic crisis is already in full swing; these changes will have no impact on the labour supply for 20 years.

Other reforms are likely to have a bigger effect. The 20-page master plan pledged to break the stranglehold of giant state-owned companies, "sweep away" price controls, move towards convertibility of the renminbi, and phase out interest rate caps, all in the name of a mixed ownership economy'. The reforms aim to create a "property market in the countryside" and local governments will lose control over the courts, "a first step towards an independent judiciary". Labour camps are to be abolished. The idea is to shift towards a modern consumer society, with a bigger role for agile, creative, private companies.

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