The HSBC Purchasing Managers Index for April rose to 48.3 from March's 48.0, but it was the fourth consecutive month below the 50 line separating expansion from contraction.

The State Council also said guidance for foreign investment review and approval will be released as soon as possible.

Ding Jihua, deputy director of the research and consulting department at Beijing New Century Academy On Transnational Corporations, said foreign companies in China will also be affected by Wednesday's decision to open up some market access to private capital. "Foreign companies in China can take part in these monopolized industries in joint ventures or as a sole investor," Ding said.

He suggested the government use the Public-Private Partnership as a way to encourage investment of private capital in infrastructure.

Tong Youhao, an official from the China Center for Promotion of Small and Medium-sized Enterprises Development, wondered if the policies can be as effective as they are meant to be, because the entry of private capital into monopolized industries involves reshuffling interests and has been difficult to carry out.

His concerns were echoed by Wang Yuanzhi, former chief of the small and medium-sized enterprises department under the National Development and Reform Commission. "The government has promised private investment into these industries for a long time, but it is too difficult to carry out in areas that can touch the interests of the monopolistic sectors," Wang said.

Li Jiabao contributed to this story

Manufacturing remains weak	Experts: GDP growth target reasonable