Why this is important to Wisconsin businesses: The Xiongan New Area is located 100 kilometers southwest of Beijing.
The Chinese government announced on April 1 it will establish the Xiongan New Area, a new area of national significance, similar to the Shenzhen Special Economic Zone in South China and the Shanghai Pudong New Area in East China. Establishment of the Xiongan New Area comes in the context of advancing coordinated development of the Beijing-Tianjin-Hebei region. Chinese authorities described Xiongan New Area as a “major historic and strategic choice” that would be “crucial for the millennium to come.”
Xiongan New Area is a new economic zone about 100 kilometers southwest of Beijing that covers an area of about 100 square kilometers. The area spans three counties that sit at the center of the triangular area formed by Beijing, Tianjin, and Hebei’s provincial capital, Shijiazhuang.
The major goals of the Xiongan New Area include building a world-class green, modern and smart new city; becoming a city with a scenic ecological environment, blue sky, fresh air and clean water; developing high-end innovative industries as new growth engines; having high-quality public services and infrastructure, as well as a new urban management model; establishing a fast and effective transportation network and a green transport system; pushing for structural and institutional reforms to stimulate market vitality; and opening wider to the outside world and becoming a platform for increased international cooperation.
According to Chinese officials, Xiongan is intended to be a hub for innovation and a cluster for high-end, high-tech industries. Financial support will be provided in areas such as traffic management, ecology, water conservation, energy and public services projects.
The move will shift Beijing's non-capital functions to the new area and explore a new model for optimizing development in densely populated areas. The project is eventually expected to cover about 2,000 sq. km. While solving many of Beijing's urbanization problems, the new area will also help integrate Beijing, Tianjin and Hebei province, and create a new sustainable economic hub in North China.
All businesses, regardless of city, country or region, are welcome to join the Chinese government’s Xiongan New Area program, as long as their business aligns with the industrial plan for the area. Wisconsin companies should pay close attention to this recent announcement and make plans to seize business opportunities in the new area and embrace the market potential arising there. In particular, companies with experience in sustainable urbanization should consider opportunities in Xiongan, since this is a particular focus in the new area.