A cluster of clothing wholesale markets in Beijing will move to the capital's southern neighbor, Baoding in Hebei province, according to a contract signed on Thursday.

In addition to the clothing industry in Dahongmen, in the Fengtai district of Beijing, relevant services such as warehousing and wholesaling will also relocate to Baigou, a district in Baoding, about 105 kilometers away, the announcement from the Baoding city government said.

The relocation is a major step for the capital to move non-core functions to surrounding areas and for Baoding to enhance its strength in clothing and bags, and seen as a win-win move for both, the announcement said.

To prepare for the relocation, expressways directly linking the two areas will be broadened and a new rapid railway is planned to connect Baigou and a new airport that is under construction in Beijing.

More than 40 clothing wholesale markets in which more than 130,000 people work are located in the Dahongmen area, making it a major clothing market of northern China with an annual income that exceeds 50 billion yuan ($8.03 billion).

Baigou, well known for its production of bags and suitcases, is ready to receive clothing vendors from the capital with plenty of room available in its shopping areas.

The governments of Fengtai district and Baoding city will also cooperate in education. Some schools in Fengtai have signed contracts with Baoding, aiming to co-build a school that can accept 5,000 students. Other joint projects in education in the two regions will share the same courses.