"One and half year ago, it was a shopping center here, and now it has become home to over 130 companies," said Zhou Hongxu, a manager with the startup community called "Vstartup" at Zhongguancun.

Near Tsinghua University, the intelligence manufacturing way (IMWAY) has turned a former high street into a center for intelligent hardware in industrial design, 3D printing and circuitry manufacturing.

According to Lu Yang, a manager with IMWAY, since its inauguration six months ago, the 380-meter street has generated an average output of 8 million yuan per meter.

Lian Yuming, head of the International Institute for Urban Development in Beijing said by moving these non-essential functions out of Beijing, the capital will be able to adjust and optimize its industrial and urban structures.

"In this way, the space, industry and the function of the municipality will be reshaped," he said.

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