The official news agency Xinhua reported on May 19, 2016, that at an executive meeting of the State Council chaired by Premier Li Keqiang in Beijing on May 19, it was decided that 345 "zombie companies," which are all subsidiaries of the 106 centrally-administered SOEs, will be reorganized or left to the market within three years. Centrally-administered SOEs are required to reduce their management levels to less than three or four from the current five to nine, while cutting 20 percent of their subsidiary legal entities within three years. The government aims to reduce losses made by centrally-administered SOE's subsidiaries by 30 percent, and increase the profit of centrally-administered SOEs by more than 100 billion yuan (US$ 15.3 billion) by the end of 2017. Meanwhile, the government will cut the country's coal and steel capacity owned by centrally-administered SOEs by 10 percent this year, followed by another 10 percent in 2017. Coal, iron and steel are among the key sectors targeted in the effort to reduce excess capacity. During the Wednesday meeting, Li again stressed that the centrally-administered SOEs need to "lose weight and get fit,"