Chinese Premier Li Keqiang announced that the government will cut the red tape involved in the approval process of business and investment projects, according to the State Council of the People's Republic of China.

Presiding over an executive meeting of the State Council, Li instructed the government to reduce the amount of documents required for submission, and streamline the online application process to give the green light for investment projects.

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 "We should try our best to return to the market what the market is capable of handling," Li said.

The measures included the removal of preceding approvals for investment projects, except for those required by law. And the approvals that are required by the law will also be reviewed and eliminated if deemed unnecessary.

The reduced red tape will "will help bring down the cost for investors wanting to set up new businesses," Shi Tiantao, a professor at Beijing's Tsinghua University told Xinhua. "It will also encourage investment and contribute to the development of new industries as well as employment."

The move is the latest in a series of decisions by the Chinese government to help stimulate the economy, which has been showing signs of a slowdown.

Li said at the meeting that he had discussions with the leaders of small and medium-size enterprises to better understand their problems, and cited some of the complaints he had received.

He said that he talked to the head of a grain distribution firm who told of having to apply for a permit to distribute food, despite the fact that he had already been given a business license.

One entrepreneur said he had to wait for a permit to start a property company, even though he had already been granted a license. Another company, involved in foreign investments, had to delay its launch because it needed an approval for each individual investment.

 "Entrepreneurs complained to me that it seems that the government is dealing with its own capital instead of theirs," Li said.

Additionally, the National Development and Reform Commission, which is in charge of China's economic planning, announced that it would reduce restrictions on foreign investment and allow more access to domestic industries. Restrictive items on an industrial catalogue for foreign investment will be cut by more than half to 35 from 79. 

TagsLi Keqiang, red tape, State Council of the People's Republic of China