BEIJING - The States Council, China's cabinet, has established a joint working group to severing the traditionally close relationship between the government and trade associations.

The group will be responsible for guiding, supervising and coordinating the work of decoupling the government and trade associations "in an active and steady manner," the State Council announced Tuesday.

State Councilor Wang Yong will lead the group. Deputy chiefs will be Xu Shaoshi, head of the National Development and Reform Commission, Li Liguo, minister of civil affairs, and Meng Yang, vice secretary-general of the State Council.

Earlier this month, the State Council released a plan for all operational, financial and personnel affiliation between the government and trade associations to be cut, the latest move to redistribute power and empower industries to self-regulate.

From 2018, the government will stop directly sponsoring trade associations and instead contract their services as outside agents.

A pilot project is scheduled to begin this month at 100 trade associations and will expand, covering more organizations, in 2016 and 2017.

When the plan is fully implemented, all trade associations will be considered non-profit NGOs.