On Friday, the state of China released its detailed plans for economic and social reforms. The plans introduced a strategy of the biggest economy in the world as signs of faltering growth had been seen after three decades breakneck expansion, said a a Reuters articles.
In a document from the Chinese Communist Party, the party said China would be accelerating capital account convertibility and will push its planned environmental tax. The document also touched base on issues about residency restrictions in China's townships and small cities and the integration of its social security systems of urban and rural regions, among many others.
The official Xinhua news agency also pointed out on Friday in its report that China would be relaxing its stringent family planning policies and abolish its labor camp system. The labor camp system was put on a spotlight as prisoners in detention facilities were subject to slavery and labor. China initially installed such system for the purpose of reeducating prisoners.
The document was approved by China's top leaders in a four-day conclave. In a Third Plenum communique Chinese leaders had released earlier, the state promised that such economic and social measures would have decisive results by the year 2020.
Hargreaves Lansdown equity analysts Keith Bowman said, "Whilst further assessment and detail is needed, the policy moves on the surface appear to be a sizeable step in the right direction. Any actions which aid the domestic Chinese economy and therefore help re-balance the global economy should be welcomed with open arms."
A state document was leaked and circulated on social media prior to communication issued by China. The said document had helped rally stocks, which was the strongest in two months.
The economy of China had been growing at double-digit rates in the last three decades. However, its government projected that the expansion rate might drop to 7.5% in 2013, which would be China's weakest pace in more than two decades.
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