Beijing has banned universities and large hospitals from being built or expanded around the Forbidden City in an effort to decentralize the capital’s functions and population.

Manufacturing and building industries, as well as wholesale businesses are strictly banned from being located in the core districts of Xicheng and Dongcheng which embrace the Forbidden City, according to a document jointly constituted by 10 departments, including the Beijing Municipal Committee of Development and Reform.

Restrictions are also placed on hotels, office buildings, and exhibition halls being built in the core districts.

The manufacture of goods such as construction materials, paper and textiles, plus coal-fired power plants, regional logistics bases and specialized markets are banned or limited in all city districts.

The document maps out a better development plan of Beijing, according to the committee.

Beijing struggles with over-population, traffic congestion, water shortages and poor air quality.

And the high consumption of resources by some industries in the city have led to concerns about their impact on the environmental.

This negative list will help lay a solid foundation for a cutting edge economic structure and leave more space for neighborhood development of Beijing, Tianjin, and Hebei province, according to officials.

The population of permanent residents in Beijing exceeded 21 million by the end of 2013, according to the municipal bureau of statistics.

The capital has more than 5 million cars and heavy smog is an increasing concern.

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