The Hangzhou city government ordered a holiday for businesses in the downtown area from September 1 to 7, according to an official social media account. The G20 meeting will be held on September 4 and 5.
City officials have also encouraged citizens to take their holiday out of town, in the hopes of reducing congestion. The city has already spent months preparing for the meeting and has undergone a major overhaul in an attempt to make traffic more efficient.
The order affects chemical producers, construction material factories and textile manufacturers stretching across Shanghai and four provinces.
China often orders mass factory closures to clean up the chronically polluted skies of most major cities. The phenomenon was apparent at a major military parade last year to mark the end of World War II.
The clear atmosphere was dubbed "parade blue" by Chinese citizens, echoing the "APEC blue" they enjoyed ahead of 2014's Asia-Pacific Economic Co-operation summit in Beijing.
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