China completes largest state leadership transition of last decade (4)

While it marks the seventh attempt in the past three decades to roll back red tape and reduce administrative intervention in the market and on social issues, analyst say it is the beginning of the new leadership's reform.

Prof. Pierre Defraigne, executive director of the Madariaga - College of Europe Foundation, said responsiveness to rising demands from the civil society, rigorous communist ethics and success in a fair sharing of wealth will be the keys to the political legitimacy of the CPC.

"The challenge for the CPC in the next decade will be altogether trying," Defraigne said.

Li said new Chinese leaders must harvest public support in pushing forward economic reforms. With the power transfer concluded, issues like enlarging the middle class, urbanization and the development of the service industry should all appear on the government's top agenda.

There was widespread agreement during the legislative session, which will end on Sunday, that China is still confronted with a number of difficulties, including regional and urban-rural disparities, pressures on the environment and social conflicts.

"China faces a complex domestic and external situation and challenges are in no short supply for the new leadership. But the introspective leaders have been crystal-clear about these problems," said Sun. "I believe they are capable of leading the Chinese people in achieving economic and social development goals."