Chinese officials have today announced plans to lay off 1.8 million workers in their coal and steel industries as part of a wider plan to restructure the country’s economy.
The move is part of president Xi Jinping’s efforts to control the ongoing loss of profits the factories are running on state expenses.
According to
qz.com, China built its economy on heavy state investment in export manufacturing industries.
While this created a large number iof jobs for low-skilled workers, the downturn on coal and steel prices mean the factories are now operating at a loss – cutting into the profits made by the state.
Officials have yet to make the decision on when the cuts will come into effect.
