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May 14, 2013

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Li calls for less political power in China economy

Premier Li Keqiang yesterday called for less political power in the market economy in order to motivate creativity and achieve transformation of the government.

In a nationwide teleconference about the functional transformation of the institutions of the State Council, Li urged officials to properly handle relations between the government and the market as well as society, delegating unnecessary powers and managing businesses the government is currently in charge of. The focus of government work should be shifted to creating a favorable environment for development, providing quality public services and maintaining social equity and justice, Li said.

Li said the transformation of government is important and urgently needed to maintain the healthy development of the economy amid the present goal of stabilizing growth, controlling inflation and preventing risks.

The new government has canceled 133 items of administrative approval matters in less than two months after it was formed. However, the work must be carried forward with greater courage and wisdom, Li said.

He stressed that the government should make a good start in the reform of the administrative approvals system, as it is key to transforming the government's function, and a critical move in forging an upgraded Chinese economy.

Li said the government should streamline administration and delegate powers to maintain growth, giving further play to the basic role of the economic market in distributing resources and inspiring market players' vitality and creativity.

Li called for minimized administrative approvals on matters concerning production and marketing activities, ordinary investment projects and qualifications.

"By summoning the courage to delegate power to lower levels, the government has made a crucial step toward ridding itself from the legacy of planned economy," said Ding Yuanzhu, a professor with the Chinese Academy of Governance.

The premier said streamlining the government and delegating power should be carried out to create jobs because augmenting employment opportunities was the fundamental goal of steadying growth and stimulating development.

Li said the new round of transforming government functions had already begun.

Government departments and local authorities should be held accountable for their work on this issue and their performance should be assessed annually, the premier said.





 

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