However, there is still a long way to go before China achieves an open market as existing interest groups retain enough influence to inhibit foreign firms from flexing their muscles in the world's number-two economy.

Opaque investment approval procedures, and a lack of effective administrative and legal recourse when investments are denied, pose huge barriers to potential benefactors of the Chinese economy, said Greg Gilligan, chairman of the American Chamber of Commerce China.

The Chinese government is aware of the current barriers and acknowledges them, Voss said, and "China has the potential to foster an open and unified market through means such as simplification of investment access and regulation of energy and water prices via market forces."

While the reform statement was short on details, specific measures are expected to be kicked off over the coming years by state agencies under the guidance of the leadership group.

The new leadership set a deadline to see concrete realizations of the reform targets by the end of 2020 and it may take a long and painful process given the vested interests.

Cucino believes there is a requirement for urgent structural changes and bold, truly comprehensive reforms, including to the financial system, as well as steps to bring SOEs into equal competition with private players.

"Crossing the river by feeling for stepping stones is necessary, but the river is already starting to swell and firm ground on the opposite bank needs to be reached soon," he added.