Observers say that clearing unnecessary qualification requirements will lower the employment threshold and create a fairer employment environment.

Removing and decentralization of administrative approval is good for both domestic and international investors and is likely to "unleash new energy at corporate level," said Niu Li, a senior economist with the State Information Center.

Tightening regulations

Even after cutting and delegating administrative approval items, the government faces challenges in regulatory efforts.

In the past, government employees in offices reviewed application materials, while they now often visit companies to inspect operations, said Wang, with the China Society of Administrative Reform.

According to separate surveys, counterfeit products, infringement upon intellectual property rights and food safety are the most pressing issues facing the market.

"These problems arise from loose market regulation. Rigid regulatory measures must be taken to rectify such problems," said Zhou Wenzhang, Vice President of the Beijing-based Chinese Academy of Governance.

Streamlining the government will not mean adopting a laissez-faire approach, as market can also fail. The government must do what it can to correct market failures, according to Zhang Monan, a researcher with the State Information Center.

Delegating power and strengthening regulation are like two wheels, only when both wheels are round can a car run, Premier Li said. "Regulation of something already in progress is often much more difficult than approving it for starting in the first place," he added.

The government has stepped up regulation on a number of issues closely related to people's livelihood, such as food safety and environmental protection.

For example, the State Council requires baby formula milk powder to be regulated and treated as medicine rather than food. On June 20, nine ministerial-level departments, including the China Food and Drug Administration, jointly released a circular on tightening control over the quality and safety of infant formula milk powder.

The circular stipulates that every batch of infant formula must undergo quality tests and producers must maintain their own dairy farms and not source dairy from elsewhere. It also prohibits companies from outsourcing any aspects of production, or repackaging and redistributing formula already made.

In tackling rampant air pollution, the State Council released the Airborne Pollution Prevention and Control Action Plan (2013-17) on September 12.

According to the document, by 2017, the density of airborne particles, especially PM2.5—those less than 2.5 microns in diameter—are to be reduced by 25 percent compared to Beijing and its surrounding areas' levels in 2012.

"In five years, air quality in China will see significant improvements, with heavily polluted days drastically reduced," the document said.

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