"We will continue to streamline government and delegate power, press ahead with structural changes and grow economic sectors under diverse ownership," he wrote.

"Government will leave to the market and society what they can do well while concentrating on those matters within its purview."

He promised to advance reforms on administrative management, fiscal and tax systems and pricing.

Jon Taylor, a professor of political science at the University of St. Thomas in Houston, said Li's op-ed "sets the stage for major reform, particularly by fighting entrenched interests and inertia in local governments, state owned enterprises, the export sector, and even the financial system itself".

"Using the Summer Davos conference in Dalian allows for Premier Li to reassure foreign investors and markets that China is sincerely committed to managing continued economic reform and growth," said Taylor.

Ann Lee, author of What the US Can Learn from China, said she agrees what Li said about China being able to avoid another Asian crisis based on changes to Fed policies."I believe that if all else remains the same, the only real risks I see to China's growth trajectory are outright military conflicts and-or a Malthusian crisis," said Lee, adding that the transition to a service economy will unleash a new wave of entrepreneurial activity."

Tang Jianwei, an economist at the Bank of Communications, said Li's remarks reflect the premier's confidence in China's economy and his resolve to push forward with reform.

"The centerpiece of Li's reform is to define the boundary between market and government. Government will withdraw from where it should not be and leave the space for the market and society," Tang said.

He said he disagreed with what the market describes as "Likonomics", saying Li's governing philosophy should not be summarized by short-term policies.

Ding Zhijie, dean of the School of Banking and Finance at the University of International Business and Economics, said China should refresh its thinking on opening-up in the next phase and gradually open its capital account to allow individuals, rather than the government, to hold the nation's foreign exchange reserves.

Contact the writers through zhangyuwei@chinadailyusa.com

(China Daily USA 09/10/2013 page1)