Unprofitable or inefficient state-owned enterprises kept alive by the government. Disposing of ‘zombie enterprises’ through M&A, bankruptcy and debt restructuring has become a key pillar of structural economic reform following the SOE reform plan released in September 2015. Zombie enterprises continue to employ workers even if they produce little and worsen overcapacity, raising fears of social instability or recession if they are eliminated. SASAC, in charge of state-owned enterprises, has promised to eliminate zombie enterprises within three years.