BEIJING—An independent Chinese think tank that has served as a rare bastion for liberal economic thought will shut down, citing government pressure as President Xi Jinping’s campaign to silence dissent rolls on.

Municipal authorities in Beijing have accused the Unirule Institute of Economics of regulatory violations and issued orders to force its closure, the think tank said in a statement Monday. While Unirule intends to file legal challenges against the orders, it will cease activities under its name and start liquidating...