Administrative streamlining and decentralization will boost the vitality of the market, the Ministry of Commerce (MOFCOM) said on Tuesday, after scraping 11 out of 31 items requiring administrative approval during the past year.

To let the market play the decisive role in the economy, the central government has canceled or decentralized 632 administrative approvals since March 2013.

A State Council executive meeting presided by Premier Li Keqiang decided to remove or decentralize a further 87 administrative approval processes on August 19.

Ma Hong, an analyst with Shanghai-based CBI Research Center, said the central government policy will help companies.

"Administrative approval processes such as approvals, certifications, and qualifications have a direct impact on the implementation of a company's projects. The clearance period of these processes ranges from a few month to two years. In many circumstances, this factor could kill a potential project with companies being forced to abandon their plans," Ma told the Global Times Tuesday.

By canceling or decentralizing these procedures, the government aims to boost the sectors that are losing steam, creating better conditions for trade and exchanges, Ma noted, as "these sectors have a more urgent need for new policy support."

The government scraped approval requirement for international bidding institutions for the mechanical and electrical products in November 2013. Since then, 143 new institutions have been freely set up through registration on chinabidding.com, a public service website, as of September 15.

These include 122 private companies, 20 State-owned enterprises, and one foreign firm. The newly registered companies have completed 89 projects worth $78.44 million, the ministry said.

However, there are also some concerns in the industry.

"European industry generally welcomes moves to ease and decentralize administrative approval processes, however mechanisms must first be in place to ensure that local governments do not accept wasteful or ecologically unsound projects to raise revenues to fill fiscal gaps," the European Chamber said in its 2014 Position Paper on September 9.

The MOFCOM said it has taken measures to ensure that the local governments can fulfill the delegated responsibilities, including enhanced monitoring, coordination and cooperation with industry associations.

"Canceling is the easy part. Delegation is the difficult part. Local areas vary in level of development," Tian Yun, an economist with the China Society of Macroeconomics, which is affiliated to the National Development and Reform Commission, told the Global Times Tuesday.

Separately, the China Food and Drug Administration has scraped 10 out of the 33 administrative approval processes since 2013, a senior official said on Tuesday.