China’s Xi renews push to develop new high-tech city outside Beijing

[BEIJING] Chinese President Xi Jinping called for greater efforts to develop his flagship metropolis near Beijing, renewing a sense of urgency to populate the city closely tied to his legacy.

He urged “more vigorous” measures to migrate the non-capital functions of Beijing to Xiongan, a development zone that would serve as a release valve for the crowded Chinese capital some 100 km away, the official Xinhua News Agency reported.

The government must “proactively and prudently” push for the relocation of state-owned enterprises, universities and hospitals, as well as “orderly” relocate financial institutions and research institutes, Xi was cited as saying on Monday (Mar 23).

The stern exhortation from Xi’s first trip to the region since 2023 reflects his desire to scale a project of “millennial significance” almost a decade after it was conceived.

Billed as a high-tech city that could rival Shenzhen or Shanghai, Xiongan targets completion by mid-century and has a 2035 near-term development milestone.

In practice, progress has been uneven since the plan was unveiled in 2017, with many residents and institutions slow to relocate.

Xi sought to dispel any doubts about his vision as he reiterated on Monday that the authorities’ decision to build the Xiongan New Area is “entirely correct”, according to the Xinhua report.

Unlike former leader Deng Xiaoping’s laissez-faire approach that led to Shenzhen’s disorderly but colossal growth, Xi has opted for meticulous planning to help his city avoid problems dogging other areas.

For example, Xiongan has imposed strict controls on home prices to fend off speculators, adhering to Xi’s mantra that “housing is for living, not for speculation”.

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The city is also being selective about which industries it welcomes, encouraging companies working in information technology, biomedical and new energy sectors and eliminating what it calls traditional industries.

That emphasis on emerging technologies was apparent during Xi’s visit. He said Xiongan should drive growth through reform and innovation, push for development of new tech clusters and serve as a testing bed for innovative tech and financial policies. BLOOMBERG