China will deepen its economic reform by leaving the market to play the decisive role in allocation of resources, according to a policy document published by the Communist Party of China (CPC) Central Committee on Friday.

The document, entitled "Decision on major issues concerning comprehensively deepening reforms," was approved by the Third Plenary Session of the 18th CPC Central Committee, which closed on Nov. 12.

According to several international observers, the word "market" has been mentioned 22 times in the 5,000-word Third Plenary Session communiqué. The upcoming change and reform in Chinese economic system have already drawn worldwide attention.

When interviewing with Xinhua, Stephen Roach, a senior fellow at Yale University and former chairman of Morgan Stanley Asia, said that the choice of words was significant.

Previously, China emphasized the market should play a "basic role" in allocating resources, whereas this time around, the communiqué highlights the market's "decisive role."

He said, "I think the statement to set up a central leading team for deepening reform is indicative of a strong commitment."

Last week, Financial Times published an article, saying that China's pledge of a "decisive" role for the market signals an eventual end to state-mandated prices in the world's second-largest economy.

Chinese economist and former Chief Economist and Senior Vice President of the World Bank Justin Yifu Lin believes that China is now entering a period of development during which it will be necessary to remove all distortions and bottlenecks in the mechanism for resource allocation.

"It's time to remove these kinds of distortions and the Chinese leadership certainly understands this issue very well," said Lin on Nov. 13 during a speech at the Singapore Management University China Forum.

Luis Oliveros, a Venezuelan economist, said that to let the market play a "decisive" role will unleash new growth vitality and potential for the Chinese economy.

He explained that in some industries such as e-commerce, where government control is relatively low, the vitality and efficiency of Chinese enterprises have exhibited an astonishing power.

Brazilian newspaper Folha de S. Paulo on Nov. 13 said in a commentary that China's focus on the market role indicates the country will further its economic reform and opening up, especially in those areas previously controlled by the government, including finance, energy and telecommunication. This could bring more opportunities to foreign companies.

Other foreign analysts believe that giving the market a "decisive role" also involves a better role for the Chinese government. The "better" role here is different from a "stronger" role. The government will exercise less control over economic development, while implementing more scientific macroeconomic policies and a more effective governance system.

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