China clears up over 95 pct of "zombie" firms: official

2019-10-18 03:36:17 GMT2019-10-18 11:36:17(Beijing Time) Xinhua English

BEIJING, Oct. 17 (Xinhua) -- China has cleared up more than 95 percent of zombie companies and enterprises in extreme difficulty, nearing its goal of phasing out all zombie enterprises by the end of 2020.

The country has set a three-year plan to resolve around 2,000 zombie enterprises that suffered extended losses and outdated production capacity in a bid to curb overcapacity and boost market vitality.

Multiple measures have been taken to address zombie enterprises, Peng Huagang, a spokesperson for the State-owned Assets Supervision and Administration Commission of the State Council, told a press conference Thursday.

"Some zombie enterprises were closed or bankrupted via judicial procedure, and some were reconstructed," said Peng, adding that the mixed-ownership reform was also adopted to help companies overcome difficulties.

Peng also said the country has attached great importance to helping employees affected by the clearing of zombie enterprises.

Major methods included offering necessary compensation, implementing early retirement and enhancing skill training for employees to find new jobs.

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