TIANJIN, June 28 (Xinhua) -- The development of new business models in China will help with reemployment of steel workers and coal miners made redundant in the country's trimming of overcapacity in those sectors, according to Premier Li Keqiang.

"The new economy and new business models are creating more jobs than we expected," said Li, when meeting with business leaders on the sidelines of the Annual Meeting of the New Champions 2016 in Tianjin, also known as the Summer Davos, on Tuesday.

The Chinese government has been encouraging business startups, especially in technology, and has welcomed development of the sharing economy. There is also a drive to promote tourism in rural areas.

China is aiming to cut 100 million to 150 million tonnes of steel capacity and 800 million tonnes of coal capacity in a few years, Li said.

"The reduction will involve nearly two million people," according to the premier.

The central government has earmarked 100 billion yuan (about 15 billion U.S. dollars) to help laid-off workers. It has asked local governments to provide funding as well.

Li vowed to cut excess capacity in "a market-oriented and lawful" manner, instead of using administrative orders.

Related:

China to continue opening up to aid economic transition: Premier

TIANJIN, June 27 (Xinhua) -- China will continue opening up its service and general manufacturing sectors and keep the renminbi generally stable within a reasonable and proper range, Chinese Premier Li Keqiang said Monday.

China will open wider to the outside world, improve its open economy, further open up the service and general manufacturing sectors and build a fairer, more transparent and predicable investment environment for foreign investors, Premier Li said while addressing the opening ceremony of the Annual Meeting of the New Champions 2016, or Summer Davos. Full Story

Premier promises steel, coal capacity cuts

TIANJIN, June 27 (Xinhua) -- China will cut excess capacity in steel and coal as part of its economic structural reform, Premier Li Keqiang vowed as he addressed the opening of the Annual Meeting of the New Champions 2016, or Summer Davos, in Tianjin on Monday.

The government will continue to focus especially on supply-side structural reform by reducing supply of inefficient and low-end products and services while encouraging more in-demand and premium ones, a process that will boost economic growth, Li told delegates at the forum.