Administrative hurdles are about to be reduced for the private sector to make way for the law of the market, Premier Wen Jiabao , pledged yesterday. Speaking ahead of tomorrow's implementation of the Administrative Approval Law, Mr Wen said the new legislation would guide the activities of all levels of government. He urged officials to make use of the law to introduce new management approaches and upgrade administrative standards. The new law, passed by the National People's Congress in August, will see the abolition of many complicated and arbitrary approval procedures and limit the government's power in approving public projects and personal applications made by individuals. Regional governments currently have the authority to set their own rules on a range of matters that are not covered by national or local laws and regulations. This freedom has led to corruption and a rise in conflicts between the public and government authorities. Drafter Jiang Mingan said the law was 'a milestone in the administrative legislation process' which would be crucial in building an effective, transparent, clean and honest government on the mainland. Mr Wen told a State Council teleconference: 'This law is important in regulating the government's behaviour and will have a significant and profound influence on the government's work. 'The direction of governance is to reduce administrative approvals and vetting. '[We should] take good care of what the government takes charge of, and leave the other matters to enterprises, and social and intermediary organisations. This will bring the market's fundamental role in the allocation of resources into better play.' The council has reportedly amended or abolished nearly 2,000 licences required by various ministries during the past two years.