Unleashing market entities key to economic growth, Li says

By unleashing the creativity of the public and the vitality of market entities, a lot of impetus will be brought to China's economic growth, but that would require the government to pursue self-targeted reform to ensure the government power is not about departmental or other interests but to help market entities to flourish, Premier Li Keqiang said on Friday.

He made the remark during a news conference after the fifth session of the 13th National People's Congress concluded in Beijing.

Reforming government functions is like improving the soils for the growth of market entities, policies of tax reductions are like applying fertilizers and water, and the initiative of mass entrepreneurship and innovation helps market entities to take root and grow, according to Li.

Shaking up vested interests could be more difficult than touching the decks of souls, he said.

In recent years, China has ensured the consistency in policies, and has been pressing ahead with market-oriented reforms and the reform of the government's own functions, according to him.

The nation has either canceled or delegated to lower-level authorities some 1,000 administrative approval items, and the non-administrative approval requirement has become a thing of the past.

In the past, it took dozens of days and even up to 100 days to open a business, but now it takes an average period of four days in the country or just one day in some places. Currently, some 90 percent of government services can be accessed online or through cellphone apps.

"We are doing all these to break down vested interests and changing the thinking way of the government to exercise governance, so as to bring greater benefits to companies and the people and we will continue to do so in the future," he said.

By improving the business climate, the number of market entities in China has reached 150 million, with an increase of 100 million over 10 years ago. Most of these market entities are privately held firms, including some 100 million self-employed households, he said, adding those self-employed households must not be underestimated, because they support the livelihood of many families and they also help to meet consumer demand.

When there are good reform measures, a sound business climate and a large number of market entities, there will be greater prospects for economic development. That has been true in many places across the country, Li said.

However, Li also said streamlining administration does not mean a diminish in responsibilities for the people and the delegation of authority shouldn't give rise to regulatory gaps.

The governments must fully perform its responsibility and exercise supervision and regulation to crackdown malpractices such as counterfeiting or cheating a marketplace, he said.

Regulation in areas concerning people's life and health and public interests, such as food, drugs, workplace safety and the financial sector, should be further stepped up in accordance with the law, he added.

There are also new forms of industry and new business models that are continuously developing, and regulatory approaches in these areas also need to be improved, to ensure that there will always be a level playing fields for all market entities to grow, he said.