China is planning to give a larger role to private businesses and market forces in its economy.
The move comes in a major policy shift intended to improve living conditions for the middle class and to make China a stronger competitor on the global stage.
According to the New York Times, in a speech to party cadres, Chinese Prime Minister, Li Keqiang, said the central government would reduce the state's role in economic matters this month.
He added that by this he hoped of unleashing the creative energies of a nation with the world's second-largest economy after that of the United States.
On Friday, the Chinese Government issued a set of policy proposals that seemed to show that Li and other leaders were serious about reducing government intervention in the marketplace and giving competition among private businesses a bigger role in investment decisions and setting prices.
China's leaders are under greater pressure to change as growth slows and the limitations of its state-led, investment-driven economy are becoming more evident.
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This month, manufacturing activity contracted for the first time in seven months, according to an independent survey by HSBC.
According to the report, foreign investors will be given more opportunities to invest in finance, logistics, health care and other sectors.
For years, Western governments, banks and companies have complained that the Chinese Government has impeded foreign investment in banking and other service industries, despite promising to open up.
China's leaders also promised to loosen foreign exchange controls, changes that are likely to reduce price distortions in the economy and allow the market to determine the value of the Chinese currency, the report added.