Beijing will allow market forces greater play and reduce the role of government in the economy, Premier Wen Jiabao said.
In a message relayed in a speech by Vice-Premier Zeng Peiyan , he said enterprises needed greater control over their future while the government confined its role to regulating the economy.
'The one which invests, which makes decisions, which earns income and undertakes the risk' should have a bigger say in the direction of the economy, Xinhua reported him as saying.
He also said large state-owned enterprises should make their own decisions on investments, financial markets should be permitted to raise capital in different ways, and private investment should be encouraged into sectors where it is not expressly forbidden.
'The basic purpose of this reform is to give market forces full play in allocating resources, to separate government from enterprises and reduce administrative interference,' the China Securities Journal cited a cabinet circular as saying.
The mainland is grappling with a stark choice between slowing investment to prevent excessive growth in demand for steel, power and commodities, while preventing the so-called 'hard landing' where growth comes to a standstill.
