To create a more favorable environment for businesses, the State Council has decided to further streamline administrative approval, the Xinhua News Agency reported.
The reform will pilot in the Pudong New Area of Shanghai, according to a statement released after the cabinet's executive meeting on Wednesday.
Under the new process, companies can now get their business running without obtaining administrative permits. Additionally, such permits can be cancelled if the market mechanism will be effective and self-discipline will be strictly practiced.
For the trade sector, administrative permits will be replaced by registration, allowing concerned companies to have their business running as soon as they submitted to the government pertinent documents.
The statement further added that in areas where administrative permits cannot be cancelled for the time being, firms can have their permits after they have submitted the required materials.
Meanwhile, in sectors covering environmental protection and public security, the cabinet will impose stricter administrative approval to strengthen risk control.
Streamlining administration and delegating powers to lower levels have been a priority agenda of the government. Since March 2013, State Council agencies have either cancelled or delegated administrative approval power for at least 500 items.
Official data shows that this accomplishment is remarkable as the State Council was able to meet their target of cutting the number of items that require administrative approval by one-third two years ahead of schedule.
Additionally, the number of investment endeavors requiring the approval of the central government has been reduced by 76 percent.
During the State Council meeting, the cabinet also approved major nuclear power and hydropower projects. This move is a reflection of the officials' commitment to develop clean energy, securing steady economic growth.