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The establishment of a social security network covering both urban and rural areas highlights China's efforts to improve people's livelihoods in the past five years.

The government should be more flexible in terms of including non-governmental organizations (NGOs) in social assistance programs and offering supportive policies, said Yan Yixin, a member of the Standing Committee of National People's Congress (NPC), at a panel discussion of a report on social assistance delivered by Civil Affairs Minister Li Liguo on Wednesday at the committee's bi-monthly session.

The VAT reform reduced companies' tax burden by more than 120 billion yuan in 2009.

The participation of private capital will also increase the competitiveness of the railway sector and lower its operation costs, he said.

"Governments in the relatively underdeveloped central and western regions are eager to catch up with their developed counterparts in eastern and coastal regions," Liu said.