Social reforms to improve safety net and promote inclusive growth in China

Despite steady improvements during the 12FYP, China's social spending as a percentage of GDP is still relatively low compared with OECD members and even with other BRICs. During the 13FYP, the government is expected to continue to improve the social welfare system and further liberalise the labour market. 

In addition, reforms in other social areas, such as family planning and migration, could go ahead. The government is expected to allow couples to have two children, a change likely to be approved in March 2016 given the increasing concerns about a demographic crisis. 

"We see room for further liberalisation in migration-related policies in major cities", notes Barclays.