The State Council is forcing local governments to publish lists of who controls administrative powers within their governments.
The move is meant to try to create more accountability and transparency in local governments.
Jin Yonglong is with the State Commission's Office for Public Sectors Reform. "The powers most people are concerned about are those held by officials closely connected with business activities. Those should be highlighted in administration list, including who controls licensing, fines and administrative enforcement. On average, around 70 percent of those in a position of power have some connection to those areas.
Meanwhile, the State Council is also demanding local governments do away with local regulations which don't have any legal basis or contradict existing laws.
A coordination system for the distribution of government powers will also be established.
Once in effect, officials say those who fail to carry out their responsibilities will be held accountable.