In December, the Chinese government set a goal of closing zombie state-owned enterprises by the end of 2020. Photo: Bloomberg

China steps up efforts to close failed zombie companies by 2020, but faces harsh economic reality

  • Liquidation plans for state-owned enterprises in regions including Hebei, Heilongjiang, Henan and Shaanxi underway, local media report
  • Analysts warn that closing firms that may ‘exceed 20,000 cases’ during economic slowdown may exacerbate fears of increasing unemployment
Topic |   China economy

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In December, the Chinese government set a goal of closing zombie state-owned enterprises by the end of 2020. Photo: Bloomberg
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Cissy Zhou

Cissy Zhou

Cissy joined the SCMP in 2019. Prior to that, she has been a producer at BBC News and investigative reporter at CaiXin Media. She is interested in China's politics and economy.

Finbarr Bermingham

Finbarr Bermingham

Finbarr Bermingham has been reporting on Asian trade since 2014. Prior to this, he covered global trade and economics in London. He joined the Post in 2018, before which he was Asia Editor at Global Trade Review and Trade Correspondent for the International Business Times.