08 April, 2017
Moreover, hotels are full and locals face traffic congestion as out-of-towners from Beijing and other cities flock to Xiongan New Area, which is located 100km southwest of the nation's capital, reported Global Times.
The Xiongan New Area project is a typical example of how state development policy in China is often dictated by the wishes of the top leader rather than by necessity or real demand.
The decision to establish the new area is part of a greater strategy, which China initiated in 2014, to jointly develop Beijing, the port city of Tianjin and Hebei to improve the region's economic structure, environment and public services, and bridge the gap between the capital and the industrial and rural areas surrounding it. It houses Baiyangdian, which happens to be among the largest freshwater wetlands in northern China with over 140 lakes that cover an area of 360 square kilometers (139 square miles).
On April 1, Chinese government released the notice that China is going to set up Xiong'an New Area, the third special economic zone after Shenzhen and Shanghai.
Regional planning should be systematic, Zhang said, with stronger land, real estate and population controls.
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Beijing will focus on its "capital functions", serving as the country's political center, cultural center, and center for worldwide exchanges and science and technological innovation, according to previous plans. Over the years, the Chinese government has built dozens of new metropolitan areas and free trade zones (FTZs), with the majority ending up becoming "white elephants" that are neither economically viable nor sustainable.
A long-term and stable funding mechanism will be put in place, and private funds will be encouraged to participate in building the new area, He added.
Wang Huisheng, chairman of SDIC, said the company would utilize its expertise in investment orientation, structural adjustment and asset management to help develop the Xiongan New Area.
According to Bloomberg, an analysts at Jefferies Group, Howard Lau here adds, "The collaborative development of the three regions is meant to solve problems like overpopulation and traffic congestion in Beijing".
Xiongan is expected to cover a total area of 2,000 square kilometers.