Market can help reallocate resources

The government will play a major role in relieving of Beijing of its non-core functions, but it's important that the resource allocation function of the market is utilized when low-end industries are moved out of the city, said Lian Yuming, president of the Beijing International City Development Research Institute.

"We have to admit that the market is not active enough. It should finally depend on the market to fully integrate the functions of Beijing, Tianjin and Hebei province to achieve sustainable growth," he said.

The government needs to make clear what will go and what will stay.