BEIJING, May 26-- China will streamline the investment project approval process to encourage more private investment.

The government will cut 23 approval items for launching investment projects to reduce transactional costs and encourage private investment, according to a statement released by the State Council on Thursday.

Project contractors have to be reviewed and approved by related government watchdogs before they start projects. Under the new regulation, 65 approval items have been reduced to 42.

Official data showed fixed-asset investment by private companies increased 5.2 percent year on year during the January-April period, retreating from the 10.1-percent growth seen in 2015.

To arrest the investment slowdown, the State Council earlier decided to begin a month-long investigation into how central government policy on private investment is implemented by local authorities.