Chinese President Xi Jinping proposed relocation of Beijing’s non-capital functions during the ninth meeting of the Central Leading Group for Financial and Economic Affairs in 2015. He pointed out that “as capital of a country with 1.3 billion people, Beijing should not and cannot bear too many functions.” Relocation of departments outside the city includes manufacturing industry units, urban wholesale markets, educational units, medical and health care units, and administrative institutions.
Relocating non-capital functions will further enhance Beijing's global influence. From the earlier experience of Tokyo and Seoul, both with huge populations, modi-fying functions nonessential to a cosmopolis is directly linked to enhancing international influence of the city. Beijing’s presently severe “urban diseases” caused by the excessive accumulation of population and functionality are hindering the city’s optimal performance and overall quality.
Through relocation of some non-capital functions, relief of air pollution, traffic congestion, and overpopulation pressures in downtown areas is expected. Structural optimization provides new paths not only to internationalization, but also to higher quality services and lifestyles. It will also create an atmosphere necessary to attract international intellectuals. At the same time, the relocation of noncapital functions will promote the modernization of Beijing’s urban management.