简政放权 (jian zheng fang quan): Shortening approval procedures and decentralizing powers

The Chinese government has vowed to change its style of functioning by reducing the administrative approval procedures and delegating some powers to lower bodies in order to create a favorable market environment for economic development.

During a national teleconference on the transformation of government institutions of the State Council on Monday, Premier Li Keqiang stressed the role played by the government in boosting economic growth and maintaining the vitality of the market. He reiterated the government's resolve to reduce bureaucracy and carry out reforms in the administrative approval system, too.

To activate the market and encourage social innovation for economic growth, the central government has made drastic efforts to delegate administrative approval powers to lower levels of governments or reduce the features that demand official approval. In fact, the new leadership has delegated or abolished 133 items of administrative approval procedures in less than two months.