China to ease transition pains with reform dividends(2)

Meanwhile, the modernization of economic governance calls for the establishment of a modern government that can meet the requirements of modern socioeconomic development.

Related reform initiatives have already been launched over the last three months, including measures to improve the budget management system, speed up taxation reform and deepen the reform of the personnel system.

Initiatives to improve macroeconomic control are the most eye-catching reform measures China has adopted, as the government has pledged that GDP figures will no longer serve as the main indicator for the promotion of officials.

Annual provincial-level legislative sessions were held between January and mid-February. Among the 31 provinces, autonomous regions and municipalities across the country, 22 local governments have lowered their GDP targets for 2014, as they now place greater emphasis on the quality of economic growth instead of sheer size.

As the government no longer judges an official simply by the growth of GDP, observers said, the government's governing capability will be further improved, and it will also ensure a freer market and more efficient allocation of resources, help unleash the vigor of domestic capital and foreign capital as well as curb industrial overcapacity.