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Premier Li Keqiang and World Economic Forum Executive Chairman Klaus Schwab attend the Annual Meeting of the New Champions, also known as the Summer Davos, in Tianjin. Feng Yongbin / China Daily

TIANJIN, June 28 -- 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.