Chinese Prime Minister Gives A 'Remarkable' Speech About Turning The Economy Over To Market Forces

In a major speech reported by The New York Times' David Barboza and Chris Buckley, Chinese Prime Minister Li Keqiang says the Party will now more actively embrace market forces and encourage private, foreign investment into Chinese industry.

"The market is the creator of social wealth and the wellspring of self-sustaining economic development,” Li says.

The speech is being hailed as unprecedented in its embrace of capitalism. Writing on his blog, Nobel economist Gary Becker called the above line a "remarkable admission."

The exact wording for the key policy proposal in Li's speech, according to a directive Barboza and Buckley cite, is, “promote the effective entry of private capital into finance, energy, railways, telecommunications and other spheres.”  

The Party also wants to begin taking steps to allow market forces to determine bank interest rates, it says.

Analysts say the speech is in response to concern that sluggishness in the Chinese economy is lasting longer than leaders desire. China's manufacturing index contracted for the first time in seven months this past week.