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Cantonese dim sum. [Photo/IC]

Capacity cuts also mean that less taxes are collected by local authorities - resulting in job losses across the board. Without the intervention of the central authorities, local authorities would be very reluctant to do what is needed, said Feng.

Chao Xue, Manager of contract administration and project management of BYD, told Xinhua recently that "range is no longer the bottleneck, as BYD buses in most of the cases, have more than enough range to cover a full day service."

Central SOEs have maintained cooperative relationships with Guizhou. Over the years, Guizhou has attracted a number of central SOEs to invest and set up business branches. Meanwhile, central SOEs have continuously increased their investment and expanded into new areas of cooperation, said Lei Helin, an official with the State-owned Assets Supervision and Administration Commission of Guizhou Province during a recent news conference.

Cement output fell 0.5 percent year on year to 1.5 billion tonnes in the first eight months, in contrast to the 2.5-percent gain seen during the same period last year, the National Development and Reform Commission (NDRC) said on its website.