President Xi Jinping's "Four Comprehensives" do not only impact China domestically, but will also positively affect other countries, especially in Asia. Three out of the "Four Comprehensives" certainly have had exerted a strong influence in Asia. Greater reform transforming China into a developed economy will doubtlessly benefit the rest of the continent at large.

As China undergoes economic transition into a more matured economy, its growth target is still relatively high--around 7 percent in 2015, despite slowing down from 7.4 percent in 2014. The national economy will be driven more by domestic consumption as people become more prosperous, and less by investment especially state-led infrastructure development. The reform will strengthen the mixed economy, within which the state's role will be strengthening market mechanisms that allocate resources in a more efficient way.

China is capable of developing a system where state and market mechanisms can be integrated and complementary. Market mechanisms increase efficiency through competition. Meanwhile, the role of the state is to safeguard the rule of law and make sure that growth can go hand in hand with equity. Many developing countries have floundered by liberalizing their economy too fast and too far to the degree that instead of becoming an advanced market-based economy, they end up with an economy that is dominated by an oligarchy and consequently suffer from a high income inequality.

Many countries have also fallen into what is called the"middle income trap." They have failed to transform from investment driven into innovation driven economy. Human resources and technological capabilities are not sufficient to support the growth of a more innovative, sophisticated economy. In addition, a weak legal system cannot facilitate further economic development.

President Xi's initiative will enable China to avoid falling into the pitfalls others have in attempts to transform their economies.

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