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.
Xiong’an New Area consists of Xiongxian County, Rongcheng and Anxin in Hebei province. The Xiong’an New Area is surrounded by Beijing, Tianjin and Hebei with advantages in transportation, environment and various resources. The new area is not deeply developed so the construction of the infrastructure can start at a higher level.
Setting up the Xiong’an New Area aims to help the co-development of Beijing, Tianjin and Hebei. The development of the Xiong’an New Area was divided into three stages. The first stage covers 100 square kilometers land. The second covers 200 square kilometers and the third 2,000 square kilometers. Industries that fail to meet the requirements of the function of the capital will be moved to the Xiong’an New Area.
The city should be developed with seven functions, according to president Xi Jinping. “To build a green and intelligent city, to build an environment friendly city, to develop sophisticated industry and cultivate new energy resources, to provide better infrastructure and city service, to develop efficient and clean traffic network, to adjust the managing system and the functions of the government and to open up and develop new platform for international cooperation.” Xi said.
Chen Yao, researcher of institute of economic at Chinese Academy of Social Science, said that it will take approximately 10 years to complete the development of the Xiong’an New Area, and another 10 years to functionalize the 2,000 square kilometers’ land. The population of the area will be expecting 2 million by that time.
Now the government is prohibiting the purchase of real estate in Xiongxian County, Rongcheng and Anxin to control the house price as people have been rushing to buy apartments and houses in the area for the benefit from Xiong’an New Area’s promising market of real estate.