It is a big change for China transit to a more free-market consumer economy with fewer social controls. The Chinese government has decided that those the price can be determined by the market itself, the government will not interference the market. For example, the government has decided that promote water, oil, gas, electricity, transportation, telecommunications and other areas of price reform; open the price competition in this areas. Open the financial sector to the outside and allow the qualified private small and medium sized banks and other financial institutions to be set up.

This economic reform is to change the government’s leading role and stimulate the market vitality. Also introduce the competition mechanism into the market, break monopoly and improve the market economy. The role of the Chinese government in the future economic development will be different. It will change from leading role to an open counseling role. It is hard to say whether it is a good thing or bad thing. As the government decided, this reform is a long-term process, the government should give it a try and see what will happened to the market and make some improvement when necessary.