Theoretical Analysis of China’s Interest Rate Liberalization Reforms

Concluded on November 12, 2013, the Third Plenary Session of the 18th CPC Central Committee—an important event under worldwide attention—adopted the Decision of the Central Committee of the Communist Party of China on Some Major Issues Concerning Comprehensively Deepening the Reform (hereinafter “Decisions”). Judging by the content of the Decisions, the key message from the Third Plenary Session of the 18th CPC Central Committee is to balance the relationship between government and market and ensure that the market plays a decisive role in allocating resources. As the most eye-catching and innovative element of the Decisions, this principle forms the theoretical basis for deepening financial reforms in China.