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China must reform its administrative approval system so as to adapt to new conditions created by the country's entry into the World Trade Organization (WTO), a senior economic restructuring official said.

Improving the government's efficiency is the nation's biggest WTO-linked challenge, said Pan Yue, vice-minister of the State Council's Office for Restructuring Economic System (SCORES).

The government once played a vital role in economic activities in the decades of the planned economy. Enterprises had to apply to several departments to do business.

WTO rules encourage the government to abandon many excessive approval requirements as part of allowing for a market-based system, so change in this realm is quite urgent, Pan said.

That doesn't mean the government doesn't have a role, though, he noted. Supervision and examination are still necessary, he asserted.

Many approvals will remain in place, but the government operations must be more open and transparent, Pan said.