China to lift red tape, allow more market forces

Chinese policymakers are shifting focus toward a bigger role played by market forces in the country's economy, and the creation of high quality public services. During a State Council meeting, Chinese Premier Li Keqiang said that to maintain healthy growth and to create jobs, the government will cut administrative red tape for the private sector.

Analysts say Li's speech targeted specific issues and covered a wide range of government works. They say the private sector, including foreign firms, could stand to benefit from the policy reforms.

But Hu Yifan, Chief economist from Haitong International says investment to the public sector and infrastructure might still have to be led by the government as returns are normally low and uncertain.