The Chinese government said Wednesday that it has revised an investment list and eased administrative procedures to reduce its intervention in the market.
Amendments to a government-approved investment list were discussed at an executive meeting of the state council presided over by Premier Li Keqiang, Xinhua reported citing a statement released after the meeting.
The old list from 2004 no longer meets economic, scientific and technological needs, the statement said, adding that revisions are necessary to enable the market to play a more important role.
Following the amendments, projects with sufficient market activity which are in line with the structural adjustment need only be reported to the authorities, instead of requiring government approval.
Among the first batch of projects affected by the amendments was gas power generation and approval has now been either cut or delegated to lower levels. Access for foreign investors in these areas has also been relaxed.
Wednesday's meeting also exempted another 75 items from central government approval taking the total number to 221 since the new leadership assumed office.
Reduced government approval and intervention will not only give enterprises more say in investment but also give the government more space to manage affairs that truly call for management.
The arrangement will encourage fair competition, avoid unchecked construction and reduce idle capacity.
The meeting also stressed the importance of accomplishing this year's government subsidised housing target, calling it "a task that has to be completed" and "a promise to the people that has be be fulfilled."
