A move to liberate the market

The Third Plenum of the 18th Communist Party of China Central Committee in November made it clear that the key to the country's comprehensive reforms was proper handling of government-market relations and allowing the market to play a decisive role in the distribution of resources.

This concept, in line with the general law of market economy, is expected to end the decades-long government-dominated economic growth model, and help the country pursue a more equitable and sustainable development path, and expedite reforms in economic, political and other fields.

The concept of allowing the market to "play a basic role in the distribution of resources under national macro-regulations" was first raised at the 14th National Congress of the CPC in 1992. It formed an important theoretical basis for China to break the barriers of the planned economy, expedite market-oriented reforms, create a favorable atmosphere for the reform of State-owned enterprises and promote the private sector's development. The subsequent establishment of a market mechanism ignited China's economic vigor and brought in two decades of fast-paced growth.