China's State Council, the Cabinet, announced on Wednesday that the country will reduce the government's power in terms of administrative approvals for companies' investment projects.

Investment projects will only need to be registered instead of approved if they can be effectively managed through economic measures and laws in sectors with sufficient competition and where companies have measures for self-regulation, a statement on the central government website said.

Allowing companies autonomy in investment is a necessity in balancing the roles of the government and the market, as well as an important move in utilizing the pivotal role of investment, boosting restructuring through reforms, and maintaining the stable growth of the economy, the statement said.