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Report: China to close 1,000 manufacturing companies in Beijing by 2020

China's capital Beijing plans to shutter 1,000 manufacturing companies by 2020, as part of a drive to reduce air pollution and increase income in neighboring regions, Reuters reported July 30, citing the state-run People's Daily.

Beijing will shift from heavy industry and "ordinary" manufacturing to focus on high-tech industries, People's Daily said, citing a recent policy document from the Beijing municipal government.

The city has already shut down or relocated 2,465 "ordinary" manufacturers and turned down registration applications from 19,500 companies, the newspaper added.

Beijing's acting mayor Chen Jining said in January that more than 40 state-owned companies will be moved out of the city's major urban districts. The city aims to cap its population at 23 million by 2020 to address traffic congestion and pollution, China Daily reported.

According to Reuters, China initiated a plan in 2014 to boost coordination in the Beijing-Tianjin-Hebei region amid concerns that competition among the three regions was generating inefficiency, overcapacity and pollution.

The government plans to relocate universities and some government departments to Xiongan, Hebei's new economic zone. It also wants to establish an integrated transport network to make Hebei, known for its heavy industry, more attractive to investors.