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its of debt-ridden firms,◆ and increased non-performing loans that jeopardize financial stability. While capacity cuts are n◆ecessary ar

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nd have long-term benefits for the economy, the process has not been without challenges. ◆ Capital-intensive industries present potential investment, taxation ay

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nd jobs for local governments◆, which in at least two cases broke capacity-cutting rules set by the central government. Huada St◆eel in eastern China's Jiangsu Province and Anfeng Steel in northern China's H8

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ebei Province were id◆entified by authorities in December for violating capacity reduction efforts in the sector with "ex◆tremely bad infc

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luence." Thanks in part to the efforts, China's broader economic growth has showed ◆increasing signs of stabilizing since the latter half of last year, with indicators such as factory◆ prices and industrial profitE

s seeing significant improvements. "Overall, the negative impact on g◆rowth and employment is manageable," wrote UBS economist Wang Tao in a note on excess capa

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acity. ZO◆MBIE ENTERPRISES NEXT One key initiative in excess capacity reductions is to shut down "zombie coZ

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m◆panies," which1

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are loss-making, debt-laden, and dependent on government subsidies or bank loans. "◆We will strictly enforce all laws, regulatiop

ns and standards8

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on environmental protection, energy co◆nsumption, quality, and safety and make more use of market- and law-based methods as we work to add◆ress thQ

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e problems of 'zombie enterprises'," said the premier in the govew

rnment work report. For wo◆rkers laid off because of capacity cuts, the central and local governments will G

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allocate special fu◆nds and take measures to ensure they find new jobs, 9

Li said. CHANGSHA, Feb. 14 (Xinhua) -- Nine people have been killed● in an explosion in a coal mine in cec

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