Monopolies in the power, communication and financial industries can increase the possibility of corruption as well as broaden the income gap, said a consultant to the State Council, who suggested those are areas where economic reforms should be pushed further this year.

State-owned enterprises, which benefit from lower taxes and fees than private enterprises, are able to use the extra money to lobby the government to increase their market share and cause unfair competition, hindering China's industrial upgrading and dragging down economic development, former chief economist of the World Bank Justin Yifu Lin told Phoenix TV.

"Deepened reforms are key to removing market distortions from the planned economic system, especially in terms of financial and price reforms," Lin said.