Beijing shuts door to new SOE headquarters

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Beijing has shut its door on sections of the manufacturing industry and banned state-owned enterprises and municipal administrative institutions from setting up headquarters in the six major districts amid massive efforts to strengthen its role as China's capital.

Some 416 out of 532 categories of the manufacturing industry, or around 79 percent, have been banned from Dongcheng, Xicheng, Haidian, Chaoyang, Fengtai and Shijingshan districts in Beijing, an increase of 30 percentage points than in 2014, according to Beijing's industry prohibition and limit regulation newly released on Monday.

Not only regular manufacturing but also high-tech industries involving with computer, communication and electricity are affected.

Beijing's six districts suffer from "city disease," such as dense population and heavy traffic, said Jiang Lige, vice commissioner of the Beijing Municipal Commission of Development and Reform. Jiang said that the new regulations will help Beijing achieve healthier, more sustainable development, the Beijing Times reported.

In addition, Beijing will no longer allow higher education institutions to be established in the six districts, to ease the crowding of higher education resources already concentrated in Beijing. Those institutes currently located in the city center have been advised to move to suburban areas.

State-owned enterprises, which are currently based outside of Beijing, are prevented from moving into the city center.

The new regulations also include new prohibitions regarding medical institutions. A large number of other sectors have also been banned, including food service, oil, nuclear, chemistry, data processing and storage, glass plating, golf courses, and car wash and repair industries.

The capital city is also working closely with neighboring Tianjin municipality and Hebei province to improve the industrial layout and achieve regional integration.

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