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Chinese Premier Li Keqiang speaks at a press conference at the Great Hall of the People in Beijing, capital of China, March 16, 2016. [Photo/Xinhua]

Streamlining administration

Chinese government has cut one third of the items subject to administrative reviews and approvals since 2013, Li said.

"Three years ago on the same occasion I promised that this term of government would cut the number of items that require State Council reviews and approvals by one third, now we have already fulfilled that target," Li told reporters.

To streamline administration and delegate powers holds the key to transforming government functions, he said, adding third-party evaluations showed most businesses and people are satisfied with the progress.

"Yet some problems still exist, and our people expect more from the government," the premier said.

Massive layoffs

China will balance reform and development well and avoid massive layoffs while cutting overcapacity, Premier Li said.

China has earmarked a 100 billion yuan ($15.4 billion) fund to subsidize possible layoffs and "if necessary, the fund can be expanded," the premier said. Local governments must also allocate funds to help push for the restructuring of industries suffering from overcapacity, such as steel and coal mining, he said.