New analysis suggests that China's rising middle class is playing an increasing role in China's reform.

The report by EU Chamber of Commerce in China has reviewed the progress of China's reform and opening-up in the past 18 month.

The progress focuses on four areas, namely environmental enforcement, local business climate, consumer goods and innovation.

EU chamber's president Mats Harborn says a better environment and more competitive consumer products is reflecting the rapid growth and common aspiration of the Middle Class in the country.

Mats Harborn, President of EU Chamber of Commerce in China. [Photo: ChinaPlus]

"The increasing advance from the middle class, for a better life, for a better environment. And this is what we see in the area of consumer goods. For example, Shanghai has been leading the way in enforcing food safety standards, and we see that they are beginning to align with international norms. We can also see down in Shenzhen, the local government is taking the similar approach in enforcing consumer protection."

The business report envisages a booming business in the pharmaceutical sector as Chinese consumers demand better healthcare options.

The analysis also highlights China's improved work permit system is attracting more foreign professionals in research and development.