A decision announced late Wednesday by China's State Council, the cabinet, will see the government slash redtape in a bid to boost business and facilitate investment, experts said on Thursday.

A statement issued after an executive meeting of the State Council, presided over by Chinese Premier Li Keqiang, said that the government would streamline approval processes for investment projects, making project approvals easier and more transparent.

It said that the effort was part of ongoing reforms aimed at reducing administrative bureaucracy and relegating power to lower levels.

"The [...] reform will help bring down the cost for investors wanting to set up new businesses. It will also encourage investment and contribute to the development of new industries as well as employment," said Shi Tiantao, a professor at the Beijing-based Tsinghua University.

Five measures were announced at the meeting, including the removal of preceding approvals for investment projects, except for those required by law. Those procedures currently required by the law will also be reviewed and scrapped if deemed unnecessary.

"The measures will loosen the government's over-reliance on administrative approval power and tackle corruption through power abuse at the source," said Liu Junhai, a commerce law researcher at Renmin University.

A series of measures, since March this year, to simplify the government's administrative approval power has injected momentum into the market. Government data shows that in the first nine months of this year, nearly 2.65 million new enterprises were established, up more than 52 percent year on year.

The National Development and Reform Commission, the nation's top government agency in charge of economic planning, also announced on Tuesday that it would reduce restrictions on foreign investment and give them more access to domestic industries.

Restrictive items on an industrial catalogue for foreign investment will be reduced to 35, down from 79. The amendment is currently going through a public poll.

Experts have warned that the preceding-approval relaxation does not mean that the government will relax control over malpractice.

Zhao Xudong, a professor at the China University of Political Science and Law, said that even though preceding approval procedures were relaxed and market access was eased, stricter market supervision would ensue.

"And this is something quite the opposite to the past," Zhao said.

A new regulation on corporate information disclosure, which took effect in October, puts companies' information in the public realm, meaning businesses are now under close public scrutiny.