China unveils red tape cuts to boost economy(2)

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.

Since 2001, the State Council has introduced six rounds of reforms cancelling or adjusting its intervention in more than 2,400 investment and production items.

Experts agreed that these measures also served as China's long-term development planning in terms of improving the country's social welfare as well as sharpening the nation's competitive edge.

A new city residential permit system will eventually replace the half-century-old hukou (household registration) system, according to the plan, and develop modern agriculture by providing better legal protection of farmers' land use rights.

The supportive functions of technology in economic growth is also given full play in the plan by boosting innovation and integrating resources in an enterprise-oriented policy.

"By improving efforts to guarantee the social welfare system and emphasizing the importance of technology innovation, the reform plan helps to tap the potential of the Chinese economy and to continue its momentum," said Nie Gaomin, director of the Economic Structure and Management Institute with the National Development and Reform Commission.

"As long as these initiatives are well implemented, we anticipate an upgraded market-oriented Chinese economy," said Wang Jun.