|Obviously, the Lewis Turning Point reading has a lot of implications for China’s future development prospects, and it will be interesting to see how the government formulates policies in the context of a swiftly diminishing cheap-labor supply. Other than financial reforms and increasing TFP as the IMF article discussed, reforms made to the hukou system could also speed up the time frame for reaching the LTP. The government has talked about hukou reform in the past but with minimal results. However, seeing how providing more social services, especially to rural areas has been a focus of the 18th NPC, could reform be another possible factor in shortening the time to LTP?
Alternatively, tightening migration restrictions (though likely unpopular; possibly causing social unrest) could stave off the LTP.
Here’s a recent news piece concerning hukou reform (pertinent info around 2:50: