Chinese Premier Li Keqiang urged his colleagues to eliminate bureaucratic red tape in its business dealings with global investors as this hampers the economic growth of the country by  losing  potential business ventures with other nations.

Li, in addressing his peers at the central government, challenged them to "cut their powers" and focus on attracting more investments by not making it hard for investors to do business in China.

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Li said he will be initiating major reforms to address the issue of red tape in the government in the wake of an economic slowdown during the first quarter this year.

He said that in order to beat red tape, the reforms should begin in themselves.

Economic reports showed that last year, government officials remanded around 416 items  to local authorities for business approval. Businessmen felt dismayed over this long delay in the required approval of their application, prompting them to take their businesses somewhere else.

The delay in the required administrative approval is obviously red tape and this isn't doing China any good in the economic front.

Reports said over 200 items will be cut this year by the government..

Newly registered businesses in China last year increased by more than 20 percent, one-third of which comprises private companies, the biggest rate so far, in ten years.

Wang Yuanzhi of the the All-China Private Enterprises Federation, said the easy and simplified business enterprises registration in place has encouraged businessmen and private investors to pour in more money in China. Last year, private investments accounted for two-thirds of the whole total investments..

"China can stabilize its economy as long as the market is allowed to play its role and public innovation is being respected," Li said.