China plans to cut govt economic intervention

BEIJING - China's cabinet announced detailed plans on deepening economic reform on Monday, fulfilling its pledge to cut government interventions that hinder more robust growth in the world's second-largest economy.

In an executive meeting of the State Council headed by Premier Li Keqiang, the government vowed to take a pragmatic approach in pushing reforms and to mobilize resources and waste no time to make them successful.

"Facing the current tasks of stabilizing growth, controlling inflation, mitigating risks and striving to foster an 'upgraded version' of the economy, it is imperative to take pragmatic moves to deepen reforms," according to a statement released after the meeting.

Efforts should be focused on pushing the targeted reforms which have accumulated conditions to realize and could produce chain effects. Resolution is needed to make them successful to release more bonuses from reform and spur vitality for social and economic development, the statement continued.

In its detailed plan, the government will cancel or delegate power to lower levels concerning 62 items that were previously subject to central government administrative approval, after similar approaches were taken on 71 items last month.

It will improve measures to check local government debts and make the budget system more transparent and standardized.

It will encourage and support private capital's use in owning and operating inter-city and regional railways and invest in the current backbone lines.

The government reiterated its determination to introduce more market-oriented reforms of the formation systems of foreign exchange and interest rates.

It will announce detailed plans on allowing the yuan's conversion under the capital account, and protecting the interests of small and individual investors.

Meeting basic living needs, the government will establish a tiered pricing system for consuming electricity, water and gas, leaving fees determined more by the market.