Beijing to close 1,000 manufacturing companies by 2020
New Delhi : Beijing, the massive capital city of China will soon announce recession for millions of employees as the officials has decided to shut down around 1,000 manufacturing companies by 2020. It is a part of a programme which aims to cut down smog and boost income in neighbouring regions, state media said on Monday.
“Beijing will focus on dynamic, high-tech industries and withdraw from "ordinary" manufacturing”, the Communist Party paper People's Daily reported, citing a recent policy document published by the Beijing municipal government.
The most populous capital city has already rejected registration applications from 19,500 firms, and shut down or relocated 2,465 "ordinary" manufacturers, the paper said.
Lately, China has launched a plan to enhance coordination in the smog-prone Beijing-Tianjin-Hebei region in 2014 in the middle of concerns that competition between the three jurisdictions was wasting resources and creating overcapacity and pollution.
It plans to shred Beijing of manufacturing and heavy industry, as well as relocating universities and some government departments into Hebei's new economic zone of Xiongan.
The China government also wants to create an integrated transport network and amalgamate standards in areas such as welfare and education to make Hebei, known for its heavy industry, more striking for investors.
Earlier in 2018, an official with Hebei province said the plan has helped drive average incomes in Hebei up 41 percent since 2013, although they are still only half the level in Beijing.