The government should create a stable policy environment and a fair competition scheme for the restructuring process of companies, scholars and experts said at a forum.

"The government must guard against a changeable policy, and let the market play a bigger role in choosing pillar industries and controlling production scale," Li Wei, director of the Development Research Center of the State Council, said at the 11th China Enterprises Development Forum.

This year is regarded as a key period for Chinese companies to quicken their restructuring process.

"With the rising labor costs, companies should sharpen their competitiveness by investing more in innovation, branding and service improvement," Li added.

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