BEIJING, June 13 -- China must work harder to transform government functions, with a focus on streamlining administrative approval, delegating power to lower levels and improving regulation and services, Chinese Premier Li Keqiang said Tuesday.
"The reform is a profound revolution of the government itself," said Li during a teleconference.
By cutting red tape, improving supervision and services, the country will be able to create a fair market environment and stimulate market vitality and innovation, Li said.
China should continue to reduce administrative approvals by restricting government use of power, the premier said.
Affirming previous achievements, Li said the reform on government functions has played an important role in boosting economic development,nurturing new growth impetus and promoting social justice.
The government should continue to make approvals simpler, supervision stronger and services better, he said.
Li listed five major tasks for the reform this year, namely easing market access for enterprises to promote employment, reducing burdens on market entities by cutting taxes and fees, encouraging investment, creating a fair environment and making public services more efficient.
Measures must be taken to fully implement structural tax cuts and corporate fee reduction. Meanwhile, investment restrictions, especially those on private investment, should be removed, he said.
The premier stressed that the government function reform has entered a "deep water zone," and authorities at all levels should persevere in pushing it forward, taking bold actions while listening to the voices of market entities and the public.
Despite a stabilizing economy, Li said China still faces difficulties and challenges, calling for concerted efforts to press on with the supply-side structural reform and other key government tasks.
To ease the burden on enterprises, the central government has taken many steps to fully deliver its promise to slash corporate costs by 1 trillion yuan (about 147.1 billion U.S. dollars) this year.
It has also been working to improve the market environment to attract foreign investment. Today, over 95 percent of new foreign enterprises in China do not need government approval before being set up.
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