Beijing officials say the city is making progress in cooperating with its neighbors and will work to shed its “non-capital functions”.

At a press conference, officials of the Beijing Development and Reform Commission said the city’s population will gradually be shifted to the planned Xiongan New Area, a new economic zone in neighboring Hebei province.

Officials said both the Xiongan New Area and Beijing need to develop public-service sectors so that both can collaborate. In particular, Beijing will support the relocation of creative elements including high-tech industries in the Zhongguancun hub, in their move to Xiongan.

The city will continue to relocate wholesale markets, factories, universities and hospitals to suburban areas and Hebei. By the end of this year, several government buildings will be finished and staff will be ready to move. A high-speed railway station will also be constructed in the Xiongan New Area, reducing journey times to Beijing to just 41 minutes.