China should draw up a new development plan for the Greater Beijing Economic Circle as soon as possible to ensure coordinated regional development., Li Shixiang, a deputy to the ongoing session of the 12th National People's Congress (NPC) and deputy mayor of Beijing, said on March 7.

"Promoting a 'capital city cluster' is crucial for the balanced development of China's capital city, Tianjin Municipality and Hebei province, as they play an important role in the country's master strategy for regional development and the national plan for developing functional zones," Li said.

The capital is finding it difficult to transfer its industries to Tianjin and Hebei, as the region has not yet formed a complementary unit that will consolidate industrial chains, resources utilization, spatial layout and demographic distribution, according to Li.

"In 2012, 26.7 percent of the city's total technology transaction volume was made locally, 56.3 percent was inked with other provincial economies, and 17 percent was export. Tianjin and Hebei only account for 0.8 percent and 2.4 percent, respectively, indicating that there are relatively wide gaps in development between the two and Beijing," he said.

"Therefore, there is an intrinsic demand to create a Beijing-Tianjin-Hebei Economic Rim, so as to form an internationally important economic, financial and commercial hub with the capital city as its center," Li said. "Such an economic rim will become a mainstay for economic growth and urbanization."

Li also believed that creating a Greater Beijing economic circle is critical to satisfy regional ecological development.

Li believes that the three neighboring provincial regions should join hands to reduce emissions and control the worsening air quality in northern China.

Water resource supply has also become more important, and Beijing should not only implement stricter management measures, but establish trans-regional mechanisms for water resources protection and ecological interest compensation, Li stressed.