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Wen urges companies to keep confidence amid turmoil

(Xinhua)
Updated: 2008-11-23 14:06

Chinese Premier Wen Jiabao called on domestic companies to pump up confidence in coping with the global financial crisis during his inspection of enterprises in eastern Shanghai and Zhejiang province from Friday to Sunday.

Wen said buoying up their confidence was "a powerful weapon to deal with the adverse effects of the global economic turbulence and financial turmoil" when inspecting local private enterprises and large-scale companies.

"Enterprises must have confidence for them to stabilize market expectations. Confidence is what they need to tide over the difficult times," he said.

Wen, also a member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, pointed out the private sector played an important role in keeping the stable and relatively fast economic growth momentum, creating more jobs and maintaining the social stability.

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"Great importance should be laid on the difficulties and challenges private companies face and more supporting policies should be given to them to create a sound environment for their development," he added.

Wen encouraged private companies to adapt to the market changes, make efforts on innovation, establish famous brands with independent intellectual property rights, improve their competitiveness and enhance risk resisting capabilities.

When inspecting Yiwu city in Zhejiang, one of the country's commodities trading centers, Wen encouraged business people to also focus on the domestic market in sync with strengthening their positions on the overseas market.

Wen stressed that large-scale enterprises played a crucial part in the national economy and social development, and great efforts must be put on pushing forward their healthy development.

He encouraged big companies to conduct merge and restructuring, eliminated the outdated production capacity and increase investment on research and development.