Authorities in Beijing have announced that many non-government industries and functions are to be phased out in the capital.
The announcement follows word that construction of an administrative center is to be accelerated, as authorities look to integrate Beijing with neighboring Tianjin and the province of Hebei.
It's part of the ongoing effort to ease the city's "urban ills" and make the city more liveable.
According to the city's development and reform commission, functions to be removed from the capital include manufacturing, logistics, wholesale markets and partial functions of the public service.
These sectors combined have drawn many people to the Chinese capital.
The latest plan follows the decision to build a subsidiary administrative center in Tongzhou district, which is about 40 minute's drive from the city center.
Professor Li Yongping form Peking University hails the plan.
"I think it is also beneficial for the municipal government as Tongzhou enjoys plenty of resources. And if some government units move to there, it will greatly release the pressure in downtown city. It is also a common phenomenon in many other developed countries."
Beijing has already seen 120 wholesale markets move out of the city since 2014, with some manufacturing industries also planning to move into neighboring Tianjin and Hebei.
Ma Qingbin is a researcher from the China Center for International Economic Exchanges.
He says with a larger regional development plan involving Beijing, Tianjin and Hebei, Tongzhou district is be a necessary choice in terms of its location.
"Bejing's development will head east and south to dock with Tianjin in the near future. From this point, Tongzhou is a good choice to facilitating the implementation of the regional development plan. It can bring more space for Beijing and Tianjin's cooperation, and thus solve the capital's problems."
Observers believe the development of Tongzhou would also relieve transportation pressure for many commuters who live in Hebei but work in the capital.
The number is currently estimated at 200,000.
Several intercity rails linking Beijing and neighboring areas are already under construction.
