Finding future demographic balance

Perhaps one of the most intriguing aspects of the government's restructuring plan released on Sunday will be the merger of the existing Health Ministry and the National Population and Family Planning Commission into a new National Health and Family Planning Commission, and the transfer of responsibility for population development strategy and population policy to the National Development and Reform Commission.

The transfer of responsibility for the population strategy to the National Development and Reform Commission indicates that the government will consider population policy on the basis of its impact on China's overall economy. But any significant change in policy should not be expected overnight. Senior officials reiterated at the two sessions that China will stick to its family planning policy.

However, this shift of perspective is vital because China's economic growth is becoming increasingly reliant on human capital.