The State Council on June 14 issued a guideline for building up a censorship mechanism for fair competition in the market system.

The move is necessary for innovation-driven development in China, according to the document.

The guideline said that the censorship system should be built in accordance with the needs of speeding up the construction of a standard and open market system. Government actions will also conform to laws and regulations, it said.

To achieve the goal, the document asked the government to transfer government functions, reduce interventions in the micro economy to the minimum, break regional limits and industry monopoly, clear market barriers and promote the free flow of goods and products.

Policy-making organizations will carry out censorship on documents and measures for market access, industry development and foreign investment, said the document.

During the policy-making process, organizations should check their own censorship standards.

Standards of censorship mainly include market access and exit, free flow of goods and products and standards that affect production and management costs.

It urged ministries under the State Council and governments at provincial levels to censor themselves for fair competition during the policy-making process starting in July.

Governments at all levels and their affiliates should clarify or eliminate existing regulations and actions that affect the building of a fair competition market nationwide, and after the release of the guidelines, newly released policies must be evaluated on whether they will affect market fairness or influence.