China's State Council is committed towards creating an environment where foreign companies can experience fair competition.

The State Council held a meeting under the chairmanship of Premier Li Keqiang on this Saturday. It is expected that foreign companies will now undergo simplified procedure for setting up their businesses in China.

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It was learned that the Chinese government would take steps to ensure improved market entry for foreign companies. This means that barring a few sensitive industries, foreign investment will only require registration, instead of approval. The council's statement failed to elaborate, though, the procedures it will require.

China is currently being accused of not providing a balanced access for foreign companies.

As pointed out by a top European business, the country may face protectionist backlash if it does not open its markets to foreign companies. The European Union Chamber of Commerce in China even called the progress on the country's economic reforms as "highly disappointing."

China is looking to boost its economy, as it aims to augur private investment.

In a meeting, the State Council decided to encourage investments in diverse fields, such as sports, culture, education and medical care. It also plans to grant more authority to provincial governments to enable them to decide about the projects related to urban transportation, container terminals and vehicle engines.

The government aims to cut 95 percent of investment registration procedures under the new process.

During the said meeting, China emphasized the importance of using the investment rules in meeting economic and environmental objectives.

It was further noted that China plans to, "in principle," block new factories making gasoline-powered vehicles as the country continuously struggles because of its deteriorating air quality.

TagsChina State Council, Li Keqiang, The European Union Chamber of Commerce