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Furthermore, the draft grants support in terms of fiscal budget for the environmental management and drinking water protection in rural areas.

"China's huge monetary stimulation plan after the financial crisis (in 2008) did bring about a 'V-shaped' recovery, but monetary expansion in other economies and the surging price of energy and other commodities directly caused China's higher-than-expected inflation," Ba said.

In Anhui province, authorities ordered the operators of more than 240 reservoirs to start discharging water on Monday to prevent them from overflowing, as the water levels of three major rivers in the areas have surpass safe levels.

By the end of July, hydropower generation capacity increased by 6.1 percent year on year to 202.63 million kilowatts. Nuclear power generation capacity added 16.2 percent to 12.57 million kilowatts. Wind power generation capacity stood at 53.81 million kilowatts, up 37.1 percent.

In the raid carried out on Monday, more than 10,000 police officers, under the ministry's command, launched operations simultaneously, catching the suspects and rescuing the children in 15 provinces including Hebei, Shandong, Sichuan, Henan, Fujian and Yunnan, according to a statement released on Friday.