NEW YORK (TheStreet) -- It may sound odd that the Communist Party in China wants to let consumers play a "decisive" role in allocating resources in the People's Republic state-controlled economy, but it is bullish news for free markets around the world.
As the world's largest consumer of commodities and items ranging from coal to luxury goods, China is the driving economic force for many countries and companies. That is why the recent statement of the Communist Party at the end of a meeting of the party's 205-member Central Committee that, "The core issue is to straighten out the relationship between government and the market, allowing the market to play a decisive role in allocating resources and improving the government's role," for bullish for the global economy.
While the statement was short on details, third plenary sessions such as these of a newly installed Central Committee have resulted in critical economic reforms. Specifically cited for reform in the future were:
- fiscal and tax policy;
- a unified real estate market for urban and rural sectors;
- a sustainable social security system; and
- greater property rights for farmers.
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