Beijing has made pledges to close zombie firms, but to no avail in the face of local opposition. But the sun may be about to set on these companies under the latest reform plan. Photo: Reuters
SCMP Editorial
Opinion

Opinion

Editorial by SCMP Editorial

Sooner China can kill off zombie firms the better for economy

  • Not only do often insolvent companies, owned mostly by local governments, suck up state credit and subsidies, but they also tilt the playing field against private enterprise

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Beijing has made pledges to close zombie firms, but to no avail in the face of local opposition. But the sun may be about to set on these companies under the latest reform plan. Photo: Reuters
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