The National Development and Reform Commission (NDRC) on May 20 released economic priorities for 2014 in a plan that has been approved by the State Council, the country's cabinet.

The NDRC said authorities will cut red tape and slash items that need administrative approval.

China will continue to expand the scope of value-added tax (VAT) reform and move to regulate financing of local governments.

A new mechanism of the yuan exchange rate will be developed and the volatility of the rate increased. Capital account convertibility will expand in an orderly manner.

Eligible private investors will be allowed to start financial institutions like small or medium banks and invest in established ones.

As prices are stable, China will reform prices of resource products and in sectors including transportation, telecommunications, pharmaceuticals and healthcare.

State-owned enterprises will move toward mixed ownership through a cooperation mechanism between state and social capital.