However, despite the central government mandate for change, formalism and bureaucracy remain as some local governments are reluctant to rein in their powers, as shown by the kindergarten case of inefficiency due to administrative interference.
Wang Xiaoguang said that a vast network of groups with vested interests was created along with China's administrative system. Against this backdrop, further reform will encounter opposition. "The biggest resistance comes from within the government itself", Wang said.
However, analysts claim that limiting the government power does not mean the government can rest easy because a market that lacks supervision and regulation leads to problems of its own.
The downfall of several senior officials including former railways minister Liu Zhijun, who received a suspended death sentence for taking bribes and abuse of power in early July, show that excessive administrative authority leads to corruption.
According to the premier, the government will continue to crack down on infringement of intellectual property rights and fraud.
While relegating administrative approval rights, the government is responsible the rule of law under which law-breakers are punished and pay for their wrong-doings, Wang said.
An important meeting of the Communist Party of China in November will be a springboard for major national reforms, with governmental function expected to be one of the main targets.
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