China has announced that it is ending its one child policy and will now permit couples to have two children. The policy has been in place since 1979 when it was introduced to curb population growth but the restriction has now been relaxed following concerns over China's aging population and shrinking workforce. According to a recent report from Credit Suisse, future generations in China will be more willing to spend their money on services rather than consumer goods. Analysts predict that eCommerce, travel and robot manufacturing companies all stand to benefit from this new generation of young China citizens in the coming years. But shifting trends take time. Chief Investment Officer of U.S. Bank Wealth Management John De Clue told TheStreet on Wednesday that relaxing the policy is unlikely to have any effect in the near term. 'In the long term, China faces a big challenge due to a drop in its working-age population, but any increase in the birth rate now will not be helpful until those newborn children reach working age, which is many years out.' Credit Suisse calls those born under the strict one child policy regime 'the lonely generation,' noting an increasing use of smartphone technology and movie watching.
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