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The nation's auditing agency issued a report last June, stating that local government debt totaled about 10.7 trillion yuan (about 1.70 trillion U.S. dollars) as of the end of 2010, of which 17.17 percent will be due in 2012.

The country's power consumption decelerated in April amid slowing industrial activities during the period, underlining cooling economic growth, which slowed to 8.1 percent in the first quarter of this year from 8.4 percent in the fourth quarter of last year.

Chen, who is also vice chairwoman of the standing committee of the 11th National People's Congress, said the friendly ties between the two nations were becoming more effective in promoting communications in all areas of bilateral relations.

The regulation will come into effect on June 1, 2012.

Eligible micro-finance companies could be transformed into rural banks, it said.