Beijing environmental watchdog has announced on Wednesday that companies, who fail to comply with the directive to reduce pollution from Aug. 10, will be subjected to severe punishment including fines.

Last week, Beijing Environmental Protection Bureau announced a series of measures to ensure good air quality during the September military parade to mark the 70^th anniversary of China's victory in the Second World War.

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Up to half of the vehicles in the city are set to be banned from the roads on particular days based on whether they have even or odd license plate numbers. Companies responsible for the emission of high levels of pollutants have also been ordered to suspend their activities during this period. Additionally, more than a thousand construction sites in the city are set to be shut down temporarily.

Officials say similar steps were effective in ensuring blue skies in Beijing during the Asia Pacific Economic Cooperation (APEC) meeting last year.

Mu Liang, the head of the monitoring division of Beijing Environmental Protection Bureau, said inspection of companies in the top polluting industries would increase between Aug. 20 and Sept. 3. According to Mu, companies could be fined up to 500,000 yuan (over $78,000) if they are caught violating the directive.

Beijing officials have explained that the restrictions on the emission of pollutants are being put into effect on Aug. 20 in order to improve the climate during the IAAF World Athletics Championship between Aug.22 and Aug. 30.

As part of the directive, about 80 percent of the public vehicles in Beijing will be removed from the road during the period. Officials say the move is expected to decongest traffic and ensure free movement of vehicles.

Air pollution is a major issue in China and authorities have been actively attempting to bring the situation under control. In Beijing, nearly 200 polluting factories have been shut down this year. Also, over 170,000 vehicles have been taken off the road and other upgraded. Nonetheless, the city continues to grapple with poor air quality.

According to the Ministry of Environmental Protection, only 19 of China's 74 big cities passed air quality tests in June. In June, the monthly reading of PM2.5 in Beijing had increased by about 10 percent from the previous month.

Experts have postulated that pollutants from neighboring cities continue to cloud Beijing. City authorities are therefore incorporating neighboring regions (particularly Tianjin and Hebei) into the city's environmental protection plan.

Beijing environmental watchdog has announced that the measures taken to curb pollution in the city ahead of the military parade in September will affect neighboring regions including Hebei, Tianjin, Shanxi, Shandong and Inner Mongolia.

Meanwhile, financial experts have expressed concerns that the suspension of steel production in Hebei - China's largest steel producing center - could lead to volatility in the price of iron-ore.

TagsBeijing Emmission Restrictions Sept. 3 Military Parade, Beijing Air Quality, Beijing Air Pollution, Beijing Air Emissions Restriction August and September, Beijing Air Pollution 70th Anniversary of Second World War, Beijing Air Pollution 2015