China is setting up fund to help eliminate industrial overcapacity and reconstruct "zombie companies". [File Photo:163.com]

It's being reported the Chinese government is setting up a 30-billion-yuan fund to help eliminate industrial overcapacity and reconstruct so-called "zombie companies".

The money is going to compensate the employees of the "zombie companies" the government shuts down.

Cutting industrial overcapacity has been listed as one of the five major economic work tasks at the recent Central Economic Work Conference.

The government has a goal of eliminating "zombie companies" in oversupplied industries by the end of 2017.

For more on this topic, CRI's Paul James earlier spoke with John Ross, senior fellow with the Chongyang Institute for Financial Studies at Renmin University.