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y 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 potential 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 Anf7

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ecember for viola〓ting capacity reduction efforts in the sector with 〓"extremely bad influence." Thanks in part to the e〓fforts, China's broader economicB

ial stabil3

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growth has showed 〓increasing signs of stabilizing since the latter ha〓lf of last year, with indicators such as factory pr〓ices and industrial prZ

ity. WhileQ

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ofits seeing significant impr〓ovements. "Overall, the negative impact on growth 〓and employment is manageable," wrote UBS economist 〓Wang Tao in a 8

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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 marketu

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