Vice Premier urges control on property development in Xiongan

China will create a new special economic zone outside Beijing similar to those established in Shenzhen and Shanghai the government said in a bid to boost flagging growth and reduce the strain on the capital. The Xiongan New Area covers the Xiong
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08 April, 2017

The central government is applying what experts called a timely brake on unreasonable real estate development in the Xiongan New Area, as Vice-Premier Zhang Gaoli urged strict controls in the newly announced innovation hub neighboring Beijing.

Analysts said that Xiongan, some 100 kilometers southwest of downtown Beijing, will create fresh business opportunities.

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News agency Xinhua said, "Xiongan will be an answer to China's growth conundrum: breakneck urban sprawl must give way to a balanced and inclusive development strategy". With more than 140 lakes and covering 360 square kilometers, the wetland is known as the "pearl" of the North China Plain. Industries that don't meet the requirements of the function of the capital will be moved to the Xiong'an New Area. The subsidiary center will be in the eastern suburbs of Tongzhou.

The main aim is not to develop the real estate industry, let alone to become a speculative "gold mine", Zhao said. The new area is not deeply developed so the construction of the infrastructure can start at a higher level.

The central government is also mulling specific support policies and will provide policy and funding support for the new area's major projects in transportation, ecology, water conservation, energy and public services, said the NDRC head.

The new area will be of the same national significance as the Shenzhen Special Economic Zone, established in the 1980s, and the Shanghai Pudong New Area, set up in the 1990s, said the circular on Saturday.


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