BEIJING, Feb 25 (Reuters) - China’s efforts to tackle the country’s zombie firms wil not result in large scale unemployment, the country’s industry vice minister said at a briefing in Beijing on Thursday.

China needs to cut off local support, including bank loans, for zombie firms, as well as strengthen environmental compliance to deal with the firms as part of efforts to reduce industrial overcapacity, vice minister Feng Fei said.

China will allocate 100 billion yuan ($15.31 billion) over two years to relocate workers during China’s industrial restructuring, Feng earlier told the same briefing. Relocating workers was the main problem that needed to be solved in restructuring Chinese industry, he added. ($1 = 6.5335 Chinese yuan) (Reporting by David Stanway; Editing by Sam Holmes)