What to take from the Plenum?

The approach to reform seems quite comprehensive, encompassing not just specific areas of economic reform but aiming at changing something as fundamental as the role of the government. Also, this is about the long haul - the leadership hopes to have made good progress by 2020. It will be gradual reform, not rapid changes. The communique confirms that economic reform, more market orientation and further opening-up to the outside world are key pillars of China's economic policy strategy.

On several specific areas of reform, including financial and monetary reform and rebalancing the pattern of growth, the communique says little. That does not mean there is no scope for movement in those areas. The Decisions document is likely to discuss them. Thus, it is too early to say whether the reform directions and orientations agreed at the Plenum will meet the expectations in those closely watched areas.

Other areas that are being closely watched, including State-owned enterprises, urbanization and rural land issues, featured in communique, but with language that does not suggest a major breakthrough any time soon. [More]