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Cutting red tape a breakthrough for economic reform

Xinhua | Updated: 2013-05-07 18:01

BEIJING - In a bid to let the market play its role, the State Council, headed by Premier Li Keqiang, introduced new cuts in red tape to invigorate the Chinese economy.

The government will cancel or delegate power to lower levels for 62 items previously subject to central government administrative approval, helping stimulate the market's and social vitality.

Analysts believed that cutting red tape will be a breakthrough in achieving the transformation of government functions and the reform plan will build up momentum for economic growth.

"This is the reform that is within the government itself. It is difficult, but we have to do it for a vigorous market ctor of the China (Hainan) Institute for Reform and Development.

"Through reducing intervention, the government will shift its function into creating a sound market environment and providing basic public services to boost China's economy," Chi added.

The initiatives also included improving measures to control the risk of local government debts and make the budget system more transparent and standardized.

"The plan offers a very pragmatic approach to tackle the key issues of China's economic reform," said Wang Jun, an economist with the China Center for International Economic Exchanges.

He said that measures like market-oriented interest rate reform, replacing business taxes with value-added taxes and opening the railway system to social capital, injected a fresh dynamic and vitality into the economy and showed the determination of the Chinese government to push forward economic reform.

Indeed, the spirit of the reform plan also echoed the report adopted by the National People's Congress in March which advocated cutting government red tape to build an efficient and law-based government with a clear division of power, reasonable distribution of labor and well-defined responsibilities.

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