Chinese Premier Li Keqiang (2nd L) visits the Laboratory of Advanced Materials & Electron Microscopy at the Institute of Physics of Chinese Academy of Sciences (CAS) in Beijing, capital of China, May 7, 2015. Li made an inspection tour Thursday at CAS and in Zhongguancun, Beijing's high-tech business hub. [Photo: Xinhua/Ding Lin]

Chinese premier Li Keqiang is promising the government is going to provide more favorable policies to encourage start-ups.

On a tour of Zhongguancun - a technology hub in Beijing dubbed China's Silicon Valley - Li Keqiang has told a group of entrepreneurs business start-ups and innovation are China's basis for sustainable growth.

"People like you know what the society needs. It is every individual in the society that knows the needs of the society, the needs of the masses. "

Although China's broader economy is slowing down, the government has been promoting programs to try to help young people launch start-up businesses.

The latest data shows the number of newly registered firms in China through the first quarter is up nearly 40-percent from the same period last year.