Recently, the State Council proposed fifteen measures comprising of three major categories, namely, the continued streamlining of administration, the strengthening of regulatory innovation as well as improving the government services.

The research team at ANBOUND Consulting is of the view that this is by far the most forceful measure put forward by Premier Li Keqiang which has made profound improvement to the market environment in China.

However, following the deepening of reform, the actual function of the streamlining of administration has diminished. As the reform enters into deep-water zone, the problems of the accessory reform and the competing factional interests will surface.

In order to make sure that the streamlining of administration achieve the intended effects, accessory reforms such as the functional transformation and institutional reform of local governments and reforms on the allocation of resources and powers should be carried out systematically.