The National Development and Reform Commission, China's top economic watchdog, will?undertake an internal reform to reduce its own power, as part of the central government's efforts to give the market a greater role, Chairman Xu Shaoshi?revealed on Wednesday.

Xu Shaoshi, chairman of the National Development and Reform Commission, answers a question after a news conference in Beijing on Wednesday.

Xu made the remarks at a press conference held during the ongoing annual session of the National People's Congress, China's top legislature, in Beijing.

The internal reform plan, which will "greatly reduce" the agency's review and approval powers, has been finalized and approved, according to Xu.

Xu said the making of the plan is a lengthy process and the NDRC aims to strengthen its role as a macroeconomic and overall policy coordination authority through the reform.

Speaking of the agency's administrative role, Xu said it will undertake a transition from "micro-level control to macro-level management", from an emphasis on project approval to regulation of operations and from project arrangement to institutional design.

Xu's comments signaled a significant change in the role of the agency, which has been exercising extensive power over investment, prices and other issues in the world's second-biggest economy.

The reform is part of the central government's plan to streamline the approval procedure and make the economy more responsive to market forces.

Premier Li Keqiang has put this drive at the center of his reform program since taking office last March.

He engineered the project and vowed to eliminate one-third of the 1,700 administrative review and approval items held by various ministries under the State Council, China's Cabinet.

At Wednesday's briefing, Xu said the administration had eliminated or delegated 416 review and approval items since last year. The NDRC itself had eliminated or delegated 44 review and approval items, he said.