BEIJING China's government is determined to eliminate the nation's excess production capacity, but its reform plan carries the risk of exacerbating the problem of hidden unemployment.
In his opening remarks this month at the National People's Congress, China's parliament, Premier Li Keqiang reiterated the government's commitment to rid the country of outdated facilities and overcapacity. He also underscored Beijing's resolve to "respond actively and appropriately to zombie companies" -- practically failed businesses living off government largesse -- through mergers, consolidations, bankruptcy and liquidation.
