China will step up its efforts in streamlining the government administration and mandating more power to lower-level governments to further vitalize the market, Premier Li Keqiang said on Sunday.

"The reform by reducing the power held in the hands of the government has helped tackle the downward pressure," Li said at a press conference after the conclusion of the annual legislative session.

The premier said the pain caused by the government's self-imposed reform is still there and is becoming more acute.

"This is not nail clipping," he said. "This is like taking knife to one's own flesh."

The premier, however, said that his government is determined to keep going.

The central government has promised to delegate the power or cancel the requirement for government review for more items, cancel all non-administrative review and establish a system for exercising well-regulated management over the government review process.

Li said that streamlining the government administration and mandating more power to lower-level governments will lead to a proper relationship between the government and the market.

"The administration must meet our people's needs and deliver them real benefits," Li said.

The Chinese government has completed its five-year task of cutting state council review items by one third.

Li attributed a new boom of start-ups to the business registration reform.

"Our people represent the largest source of vitality for economic activities," he said.

Li said that all non-administrative review items will be canceled this year, to ensure that the government power will not be exercised if it is not stipulated in the law.

The central government is currently mandating 1,200 review items to local governments.

"Our goal is to cut this number by over 200 in 2015," the premier said, urging governments at all levels not to hold on to power that should be delegated.

He also said that all provincial-level governments would be required to release this year their lists of power and responsibilities.

This task will be assigned to governments in cities and counties next year, he said.

"We must keep our people well informed of what power their governments hold and put the government power under public oversight to prevent the abuse of power," Li said.

The premier urged a better regulation to prevent illegal acts such as cheating, swindling and producing substandard goods.