China to push for structural reforms through Central Economic Conference

Dec 17, 2015, 09:00 am

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By Hong Soon-do, Beijing correspondent, AsiaToday - It seems certain that China will embark on the powerful structural reforms next year through the upcoming Central Economic Conference, at which policymakers are expected to map out 2016 economic and reform plans and targets, which opens on Thursday. As a result, a considerable number of so-called "zombie companies" is expected to be eliminated next year.

Such outlook has been signaled by Xi Jinping who highlighted extensive reforms at a meeting of the Political Bureau of the Communist Party of China on Monday, ahead of the annual Central Economic Conference. According to Xinhua News Agency and other Chinese state-run media outlets on Wednesday, Xi Jinping picked structural reforms as one of China's 10 key economic challenges in 2016 at the meeting.

In fact, such outlook on reforms has been already expected considering the fact that Chinese Premier Li Keqiang had been constantly emphasizing the need to eliminate zombie companies in order to digest excessive capacity and foster new growth.

China's state-owned Wuhan Iron & Steel. It has taken some pre-emptive action by cutting roughly 11,000 jobs./ Source from search engine Baidu.

Currently, companies that are expected to be eliminated have been predetermined to some extent. China's state-owned companies in industries like steel, cement, coal, and solar energy will be the first targets. If this is true, over 110 state-owned companies are expected to decrease into nearly 40 companies through either elimination or merging. China's second largest steelmaker Wuhan Iron & Steel has taken some pre-emptive action by cutting roughly 11,000 jobs.

In addition to reforms, the Central Economic Conference will be focusing on solving inventory in real-estate industry, company cost cutting, financial risk eliminating, and establishing Silk Road Economic Belt in details.

#Central Economic Conference #China #structural reforms 
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