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China / Government

From pension to GDP: Government's New Year Resolutions

(chinadaily.com.cn) Updated: 2016-01-07 09:53

From pension to GDP: Government's New Year Resolutions

The government will improve the competence of SOEs and turn them into fully independent market entities. [Photo/IC]

The exit of 'zombie' companies

Miao Wei, minister of industry and information technology, said it is expected to see the closing of "zombie" companies and strategic industrial restructuring.

"Zombie" companies refer to failing companies that continue to operate with government support but cannot stand on their own.

These beleaguered companies are to blame for the potential systemic risks of the Chinese capital market.

Many people believe that the exit of these bad performers will help beat overcapacity, a long-standing problem dragging China's economy down.

Read more: Smoother journey expected for China's capital market despite rocky start

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