Reform, relaxation and balance are key pillars of Likonomics
Richard Harris says Li Keqiang's tough measures could bring a fairer distribution of wealth
The easing of controls on interest rates this month is one of the most important Chinese economic reforms since Deng Xiaoping went to Shenzhen in 1992 to reinforce the message that "to get rich is glorious".
The correct pricing of money permeates throughout a modern economy and forces the efficient use of capital. The initial reforms are modest but are as irreversible as squeezing a tube of toothpaste.
This policy change stems from Li Keqiang , a man who once defied his homebody father to graduate with a PhD in economics from Peking University and who is now defying China's entrenched traditionalists. Official sources claim the premier to be against "formalism, bureaucratism and hedonism". He takes meetings of the State Council in an open-necked shirt. These new party leaders are not time-servers - they are reformers and are not afraid to upset the status quo.
It was reported in the South China Morning Post that in a meeting earlier this year, Li slammed his fist down on the table at the intransigence of government officials against his reforms. This report is probably a controlled leak but it is also a sign of his determination.
An easing of regulatory approvals, already happening, will reduce costs
The creative policy mix by which Li is seeking to deal with China's unique economic circumstances is termed Likonomics. To deliver manageable debt, low inflation, steady growth and a strong currency will need a strong change leader; like a Reagan, or a Thatcher, or perhaps a Li. This development of "capitalism with Chinese characteristics" can be summarised as "reform, relaxation and rebalancing".