China's State Council, the Cabinet, said Wednesday the country would step up efforts to encourage investment from the private sector.

The government would encourage private investment in sectors currently mainly state controlled such as infrastructure for transport, telecommunications and energy, public utility, scientific and technological programs for national defense, and the building of affordable housing, according to a statement released after the Cabinet's executive meeting Wednesday chaired by Premier Wen Jiabao.

The State Council called for private firms, which played an important role in creating jobs, to strengthen independent innovation and roll out more new products, according to the statement.

The government would also help some private enterprises set up technology research centers.

Private companies were welcome to participate in the reform of state firms by purchasing a stake in them, it said.

The government said it would create a good environment for private investment by setting up a sound administrative service system and amend unfavorable laws and regulations.

In an effort to combat the global financial downturn, the government agreed at the Central Economic Work Conference last December to promote private enterprises so to create jobs, to increase market access for private investment and protect the legitimate rights and interests of private investors.