The key goal is to clarify the government's role in the economy. These are accompanied by reforms in finance, taxation, State assets, social welfare, land, foreign investment, innovation and good governance. In turn, the reform packages seek to relax control over market access, launch social security and allow sales of collectively owned rural land. The household registration system, which continues to discourage migration, will be phased out beginning with easier access to urban registration in third-tier cities.

The reforms come with increasing financial deregulation. A market-driven financial sector is vital to support the social model and consumption-led growth. Concurrently, China is opening doors for foreign investors and financial institutions, and the intention is to make the renminbi fully convertible and a major international and reserve currency within a decade.

Since early fall, these reforms have been fueled by the creation of Shanghai's free trade zone, along with 18 new policy initiatives, which seek to reduce restrictions in half a dozen key industries, including financial services and telecommunications.

These reforms, which will be spearheaded by a central team, are likely to be phased in over the next decade. [More]