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After visiting Taiyuan Iron and Steel Group, a world-leading stainless steel producer, Li said the steel sector is suffering badly from excessive production and flagging demand.

RIYADH, Jan. 20 (Xinhua) -- China and Saudi Arabia have decided to establish a high-level committee to guide and coordinate bilateral cooperation, the two countries' foreign ministers announced here Wednesday.

The reform, which allows some companies to get their businesses up running without first obtaining administrative permits, will transform government functions and stimulate social innovation, said a statement released by the cabinet.

Stressing that the current situation on the Korean Peninsula "is very sensitive," Hong said China hopes "countries concerned would bear the mind the big picture of maintaining regional peace and stability and handle relevant issues prudently and properly."

Altogether 116 administrative permit items will either be canceled or simplified, according to the statement.