The State Council on Monday released a guideline on reforming the paid-use mechanism for natural resources as the government seeks more efficient and rational use of the national wealth.

By 2020, China aims to have a paid-use mechanism that features a clear description of property rights, improved rules and better regulation for natural resources, according to the guideline, which was approved by Premier Li Keqiang.

Public natural resources include land, mineral deposits, water, forests,sea and islands.

Without proper regulation, such resources could easily be exploited, leading to irretrievable damage.

The guideline detailed major tasks for managing such resources, pledging to expand the paid-use system to cover land for public service and state-owned agricultural use, while fees for the use of water resources will be strictly collected.

The paid-use system for mineral deposits will be further improved, the guideline said, and the mechanism will be tested on state forests and grassland.

The government will also establish a system on the use rights for uninhabited islands and gradually widen the scope for transferring resources.

The government is currently exploring how to allocate public resources in a more efficient, transparent and fair way.

Last week, the Communist Party of China Central Committee and State Council promised to address problems such as over-reliance on administrative measures.

Management of natural resources should be based on property rights to compensate rights holders for the use of public resources, authorities said.