The Chinese government is purchasing stakes in private companies to keep them afloat amid economic troubles in the country, The Wall Street Journal reports.

The government has taken steps in the past few decades to move from state-owned businesses to private enterprises, since their public-sector companies tended to lag behind private firms in terms of efficiency and innovation. However, private businesses fell into a weaker position because of their relatively limited access to low-cost financing, and due to efforts by the government to reduce pollution and overpopulation.

President Xi Jinping tried to reassure China’s business community by saying in October that “Any word or act to deny or weaken the private economy is wrong.”

According to the Journal, buyers backed by the state purchased 47 stakes, ranging from 1 percent to 100 percent, in privately-owned companies between January and June. 

“The majority of these stake acquisitions need to be understood from the perspective of relieving financial stress,” said Jing Yang, an analyst at Fitch Ratings, which compiled the data.

“Beijing is stepping in because they are worried about a sharp rise in unemployment,” added Andrew Collier, a managing director at Orient Capital Research.

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