China targets 100-300 ‘zombie’ steel mills

摘要

At least 100 steel producers in China have been classifed by the country’s state council as "zombie" mills that should be shut down to reduce overcapacity. The state council, effectively China’s cabinet, has pub- lished a paper on the long-term steps needed to reduce steel overcapacity. The number of zombie mills could be as high as 300, the paper said. Zombie mills are chronically lossmaking and partly shut down, but survive thanks to subsidies from provincial and city governments that are looking to maintain employment, as well as through cheap credit from state-run banks.