Reviewing the course of its past 30-plus-year reform, it is clear China's progress has been remarkable. However, also noteworthy is that the government has done many things that it should have left to the market to adjust. In essence, governmental interference goes against the development rule of a market economy. So, the current emphasis on "letting the market play the decisive role in the allocation of resources" implies that the government has decided to stop interfering in what it shouldn't and leave the market to play its part. In line with this new trend, the plenum also clarified the government's functions, forbidding it to act beyond its authority. Since the new government leadership took office last March, Premier Li Keqiang has emphasized on several occasions streamlining administration and introducing decentralization, and that the market should have greater responsibility. This signals that upcoming major reforms in China will be market-oriented, which will ensure China's economic development better conforms to the market rule.

The core of the all-embracing and profound "Deng Xiaoping Theory," which has served as the CPC's major policy guide since 1978, is about emancipating the productive forces. China's impressive development in the past 30-plus years is a result of China constantly doing so. The plenum stressed the emancipation of people's minds and productive forces and unleashing social vitality, which is imperative because only if China's productive forces are fully free can China's economy achieve better development.

Of the three elements of productive forces, namely, the people, the means of production and the subject of labor, the people is that most critical. In the past, our understanding of "people" had been one-sided; we had taken "people" to mean workers. In fact, here, "people" refers to entrepreneurs and inventors. Since China's reform and opening-up, generations of such people have emerged and created huge social wealth and employment opportunities.

In 1978 China had no private economy. Today, however, the country's private economy accounts for 65 percent of its economic aggregate and creates almost 80 percent of China's jobs. However, excessive governmental interference in the development of China's private sector has hampered the all-important sense of initiative. But this year's reform measures introduced by the third plenum, that aim to emancipate people's minds and social productive forces and unleash social vitality, are bound to stimulate people's enthusiasm in developing the economy, bringing new advancement and development.

The plenum has attached special importance to opening-up, which is also critically important for China's development. On November 2, 2013 when meeting with representatives of the 21st Century Council, a top global think tank, President Xi Jinping said, "The more developed China becomes, the more important opening-up is for China." China's major development in the past three decades has been mainly achieved through opening-up and international cooperation instead of isolation. Deng Xiaoping proposed the strategies of reform and opening-up, which have enabled the country to shake off poverty and build the world's second largest economy. China had led the world for more than 1,000 years. When the Eight Power Allied Force invaded in 1900, China's gross domestic product (GDP) was almost one third of the world GDP. However, high GDP didn't necessarily equate to a powerful country. Failure in technological advances put the country in an awkward position; seclusion led to China's lack of progress, while opening-up brought about dynamic development. It is, therefore, widely held that without opening-up, there would be no reform and thus, no development in China.

What is noteworthy is that 42 days ahead of the third plenum, the Shanghai Free Trade Zone was officially launched, a signal to the world that China's economy will be more open in the new era because opening-up can enable us to better learn from world civilization, better integrate with the world and better solve all kinds of conundrums facing us.

Detailed reform measures on various other fields will be introduced in succession. China's experience indicates that reform must be carried out in a gradual and orderly manner – "shock therapy" is not a feasible option. Considering its huge population, immense territory and impressive economic aggregate, major reform measures should be introduced gradually and trials are essential. Once a trial reform sees success, the relevant experience can be promoted nationwide. China needs to be both bold and prudent. Only in this way can China advance steadily and realize rejuvenation of the Chinese nation and Chinese civilization.

Wu Jianmin is vice-chairman of the China Institute for Innovation and Development Strategy.