Harada 16 Nikkei staff writer Issaku Zombie companies still roam free in chinas

Harada 16 nikkei staff writer issaku zombie companies

This preview shows page 11 - 13 out of 55 pages.

Harada 16 – Nikkei staff writer (Issaku, “Zombie companies still roam free in china’s hinterlands”, NIKKEI ASIAN REVIEW, 7-16-16, - China-s-hinterlands)//SL BEIJING -- As President Xi Jinping spearheads a drive to cut industrial capacity and cull money-losing "zombie" corporations, a closer look at Chinese coal country raises doubts as to whether his proposed reforms will ever take root . Shuttered mines litter the landscape around the city of Linfen in Shanxi Province. A 58-year-old worker at a state coal-processing company said his monthly salary of just over 3,000 yuan ($448) started arriving a month late in March. This was the first time something like this had happened in his 10-plus years there. His nephew is waiting for the coal waste disposal plant where he works to resume operations. "There are no jobs, so all the young people have gone to work in Beijing and other places unless their families are rich," the worker said. Little activity can be seen at a steel and coking coal plant so large that buses run across its grounds. The local government has been gradually shutting facilities down since around 2013 for environmental and other reasons. The plant employed roughly 30,000 at its peak, but only a third as many remain today . It now makes only steel sheet and a handful of other products whose prices have recovered. About 7,000 employees wait at home for work on a monthly stipend of about 1,000 yuan. "Did you also come to collect debt?" a man asked while approaching this reporter. The 30-year-old's Jiangsu Province company had a long business partnership with the plant but had yet to be paid 2 million yuan in receivables. "Our parent company won't even let us go bankrupt," he said. "We are the epitome of a zombie company, just trudging along under current conditions." Reform plans laid out by Beijing in December stress the need to restructure zombie companies in order to minimize the number of bankruptcies. But as long as employers and employees alike remain in limbo, the ruling Communist Party will get nowhere in its efforts to prevent a rise in joblessness and social unrest.
Image of page 11
Xt – Reforms Fail New Reform can’t solve Brexit shocks Pesek 16 – awarded the 2010 Society of American Business Editors and Writers prize for commentary (William, “Why Brexit Is a Wake-Up Call for China”, BARRON’s, 6-29-16, - brexit-is-a-wakeup-call-for-china-1467163893)//SL Should turmoil continue to hit world markets, China will find what worked eight years ago won’t as 2016 unfolds . It’s simply reached the limits of what can be achieved with stimulus , conventional or otherwise. Here’s an even bigger concern: that Li and his boss President Xi Jinping continue to punt much-needed economic upgrades forward, just as Wen’s government did from 2003 to 2013.
Image of page 12
Image of page 13

You've reached the end of your free preview.

Want to read all 55 pages?

  • Fall '16
  • Dr. Watson
  • Test, The Flies, Economy of the People's Republic of China, Hu Jintao, Communist Party of China, Xi Jinping

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture