China says cuts in overcapacity won’t cause massive layoffs

A worker welds at a machinery manufacturing factory in Huaibei, Anhui province in this August 20, 2013 file photo. REUTERS/Stringer Thomson ReutersWorker welds at a machinery manufacturing factory in Huaibei

(Reuters) – China’s plans to reduce industrial overcapacity are unlikely to result in large-scale layoffs, the country’s top economic planner said on Sunday.

Xu Shaoshi, head of the National Development and Reform Commission (NDRC), told reporters at a briefing that economic growth will create more jobs and help offset the impact of capacity cuts.

China aims to keep its economy growing by at least 6.5 percent over the next five years while pushing hard to create more jobs and restructure inefficient industries, Premier Li Keqiang said on Saturday.

(Reporting By Norihiko Shirouzu; Editing by Kim Coghill)

Read the original article on Reuters. Copyright 2016. Follow Reuters on Twitter.

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