Why is China's Xiongan potentially a high-quality economic hub?

APD NEWS

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The Xiongan New Area, about 100 kilometers southwest of Beijng, marks its one year anniversary in operation on Sunday. Given the completion of the first infrastructure project, the New Area will function as the hub of the Beijing-Tianjin-Hebei economic triangle for years to come.

Liu Chunsheng, an associate professor from the Central University of Finance and Economics in Beijing told CGTN his expectation of Xiongan – a high-quality economic zone and necessary government moves to ensure its development.

As the announcements by some Chinese state-owned companies and tech giants to set up branches in the New Area, “What does the government need to do to keep them there?” the anchor asked.

Liu notes these enterprises are “responding [to] the call of government,” and also have their own strategy due to the “plenty of opportunities in the New Area.”

“To realize the magnificent plan,” according Liu, “it is crucial for Xiongan to insist on the leading position and industry layout with international standard and insight of Chinese characteristics.”

In addition, Liu said companies featuring AI, big data, logistics, biology and genetic engineering “should be the priority for government,” which requires “top talent, financial support, institutional innovation and a friendly & fair business environment.”

Thus, “the central and local governments need to make efforts to facilitate the construction of the new area,” he added.

As for the doubt whether the Xiongan New Area is a model for high-quality economic growth for next decade, given that some new area projects do not meet the original standard in the country, “What can we expect from Xiongan during this period?” asked the anchor.

With the answer of “Xiongan is totally different,” Liu notes the “central government has made every effort to build up a new development model with effective method.”

According to Liu, the industry layout to establish city globalization and industry cluster provides “valuable and precious lessens and comparisons for China development.” Therefore Liu expects Xiongan to have a very good future.

“Xiongan is not only a testing field for reform and city and industry development, but also a growth hub for China,” he added.

(CGTN)