Exactly a year ago, Premier Li Keqiang set out the case for difficult industrial overhauls. “This is not nail-clipping,” he warned, “it’s like taking a knife to one’s own flesh.” The comments recalled his fearsome predecessor Zhu Rongji who eliminated 30 million jobs practically in one go in a cleanup of state enterprises in the late 1990s. But Mr. Li has yet to follow through. The problems he was grappling with…