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t gluts can have implications such as depress〓ed commodity and materials prices, reduced profits 〓of debt-ridden firms, and increased non-performing 〓loans that jeopardize financial stability. While c〓apacity cuts are necessary and have long-term benef〓its for the economy, the process has not been witho〓ut challenges. Capital-intensive industries presen〓t pT

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otential investment, taxation and jobs for local〓 governments, which in at least two cases broke cap〓acity-cutting rules set by the central government. 〓 Huada Steel in eastern China's Jiangsu Province an〓d Anfeng Steel in northern China's Hebei Province w〓ere identified by authorities in December for viola〓ting capacity reduction efforts in J

the sector with 〓"extremely bad influence." Thanks in part to the e〓fforts, China's broader economic growth has showed 〓increasing signs of stabilizing since the latter ha〓lf of last year, with indicators such as factory pr〓ices and industrial profits seeing significant impr〓ovements. "Overall, the negative impact on growth 〓and employment is manageable," wrote UBS economist 〓Wang Tao in a note on excess capacity. ZOMBIE ENTE〓RPRISES NEXT One key initiative in excess capacity〓 reductions is to shut down "zombie companies," whi〓ch are loss-making, debt-laden, and dependent on go〓vernment subsidies or bank loans. "We will strictl〓y enforce all laws, regulations and standards on en〓vironmental protection, energy consumption, quality〓, and safety and make more use of market- and law-b〓ased methods as we work to address the problems of 〓'zombie enterprises'," said the premier in the gove〓rnment work report. For workers laid off because o〓f capacity cuts, the central and local governments 〓will allocate special funds and take measures to en〓sure they find new jobs, Li said. CHANGSHA, Feb. 14 (Xinhua) -- Nine people have been killed in an explosion in a coal min◆e in central China's Hunan Province. The entrance of Zubao Coal Mine where a blast o◆ccurred is seen in Lianyuan City, central China's Hunan Province, Feb. 14, 2017. At lea◆st eight people were confirmed dead after the blast hit the coal mine at 1:37 a.m, loca◆l authorities said on Tuesday. (Xinhua/Li Ga) The blast occurred at 1:37 a.m. Tuesday ◆at Zubao Coal Mine in Lianyuan City, authorities said.A total of 29 people were working◆ underground, 16 of whom managed to escape from the shaft. Another four were rescued.Th◆ree injured miners are being treated in hospital and described as stable.Work is contin◆uing to retrieve the bodies of three victims in the flooded shaft.The licensed coal min◆e with an annual production capacity of 90,000 tonnes is owned by Tengfei Coal Mine Co.◆ Ltd.4

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