China will accelerate the reform of monopoly industries to facilitate fair competition among private and state-owned businesses, Premier Wen Jiabao said in a government work report delivered at the parliament's annual session Friday.

"We will effectively expand market access, and actively introduce competitive mechanisms," Wen said at the opening of the Third Session of the 11th National People' s Congress (NPC).

"We will create a market environment for fair competition among economic entities under diverse forms of ownership, and facilitate stronger growth of the non-public sector," Wen said.

There are calls for government to loosen the grip and invite private sector to join the competition in monopoly industries.

The government said it will deepen the reform of prices for resource products and environmental protection charges as the current state-controlled pricing mechanism does no good for conserving energy and resources, and achieving sustainable development.

Wen noted pushing forward these reforms requires the government to balance the interests of different parties and ensure that the basic living conditions of people with low incomes are not adversely affected.

The government will speed up the reform to introduce the corporate system in large state-owned enterprises, diversify their ownership and improve their corporate governance, Wen said.