It's better to use our finances to support employees' lives than to use the money to carry on supporting companies that make huge losses. When employees who lose their jobs because of overcapacity reduction are able to lead stable lives, thanks to governmental financial help, they will be able to get new jobs after training. According to Beijing's plan, the central government will spend 100 billion yuan on redistributing employees within the companies that are scheduled to cut capacity. The money can be used for relocation and professional training.

Li Yining, senior economist and a member of the CPPCC National Committee

China's current overcapacity problems in the steel and coal sectors are not temporary. There is an ongoing surplus. We talked about production overcapacity 10 years ago, but steel and coal output carried on growing to meet increased demand. However, in the past two years, steel output reduced by 2.3 percent while steel consumption fell by 5 percent, which shows that the problem is structural, not cyclical. Industry insiders and the public are very concerned about zombie companies. We need clear parameters to define which companies those are.