China's policymakers and economists have rung alarm bells for companies on the brink of bankruptcy, known as "zombie companies", to sustain growth and reduce the risks facing the economy.

China will accelerate the shutdown of such companies and improve the core competitive strengths of its industries, said Liu He, vice-chairman of the National Development and Reform Commission and director of the Office of the Central Leading Group on Financial and Economic Affairs. Both agencies play pivotal roles in shepherding China's economic reform agenda.

"China will give a big push to market-oriented reform and put more emphasis on supply-side adjustments," said Liu, who conducted a three-day field investigation of the economic situation in Guangdong province last week. He added that the country can overcome the structural and cyclical difficulties facing the economy.