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"Curbing air pollution is a complicated and systematic project that requires long and arduous efforts," the cabinet noted in the statement.

While it marks the seventh attempt in the past three decades to roll back red tape and reduce administrative intervention in the market and on social issues, analyst say it is the beginning of the new leadership's reform.

Although the PMI remains generally stable, the slight retreat indicates slower growth in the manufacturing sector and the need for a stronger momentum in China's economic growth, the statement said.

The Chinese government has always adopted a balanced approach toward realizing the policy goals of maintaining stable growth, controlling inflation, preventing risks and promoting reform, restructuring the economy and improving people's living standards, he said.

The guideline, issued by the National Development and Reform Commission (NDRC) and the Ministry of Commerce (MOC), encourages FDI into environment-friendly and labor-intensive industries in the two regions, so as to better utilize resources and improve services.