Chinese Premier Li Keqiang has said that the government should attach more importance to encouraging innovation, optimizing the business environment and raising growth quality and efficiency.

Li made the remarks Thursday in a meeting with experts and entrepreneurs on analyzing current economic performance and suggestions about future economic work, according to a press release issued Friday.

After the economy stabilized in the first half, "we should not only have firm confidence, but also be well prepared for dealing with all kinds of difficulties," Li said.

China should reduce transaction costs with intensified efforts to streamline administration, delegate power to lower levels and improve regulation and services, Li said.

The government should also strive to create an internationally competitive business environment in which domestic and foreign companies are treated on an equal basis, the premier added.