Chinese Premier Wen Jiabao (C) talks with workers of the Shanghai Waigaoqiao Shipbuilding Co., Ltd. in Shanghai, east China Nov. 22, 2008. Wen Jiabao made an inspection tour of Shanghai Municipality and Zhejiang Province from Nov. 21 to Nov. 23, 2008.[Xinhua Photo]

Premier Wen Jiabao said, "Great importance should be placed on the difficulties and challenges private companies face and more supportive policies should be given to them to create a sound environment for their development"

Wen Jiabao suggested private companies show more flexibility under the current situation by targeting not only the mass market, but also the niche markets.

On a tour of businesses in Yiwu, a center for the garment industry, Premier Wen said they should focus as much on expanding their international market as on catering to domestic consumers. China has already provided some relief to garment factories hit by the economic recession by increasing tax rebates on exports.

Premier Wen Jiabao urged big companies to merge or restructure, eliminate outdated production capacity and increase investment in research and development.