It takes time to rebuild an approval system so it is reasonable, efficient and orderly, Zhang said, adding both top-down policy and real-world tests are necessary.

Earlier on the same day, the National Development and Reform Commission and State Commission Office of Public Sectors Reform canceled 18 preconditions for investment approval, giving enterprises more room to invest and make independent decisions.

Draft amendments to a series of laws on education were also passed at the meeting and will be delivered to the top legislature for review.

The draft amendments propose delegating approval rights for establishing higher learning institutions to provincial governments and allowing for-profit private schools.