A Ghost Town with an AI Road Network? Visiting Xi Jinping's High-Stakes New City Firsthand

I would like to share the behind-the-scenes story of covering Xiongan New Area, a new city personally spearheaded by President Xi Jinping and referred to by China as a "millennium plan." Throughout modern Chinese history, prominent leaders have always left behind a "city" that symbolizes their policy philosophy. For instance, Deng Xiaoping, who championed reform and opening up, built up the economy by establishing a special economic zone in Shenzhen—where APEC is scheduled to be held next month. During Jiang Zemin's era, Pudong in Shanghai was developed into a financial hub.

The third state-led new city being built by China is Xiongan New Area, a name that is somewhat difficult to pronounce. Administratively, Xiongan New Area is a small town area in Hebei Province, situated below Beijing and Tianjin. Because it is a special economic zone established across three counties—Xiongxian, Rongcheng, and Anxin—it was named Xiongan New Area by taking the first Chinese characters of their names. I had the opportunity to visit here by taking part in an inspection program organized by the Beijing office of the Korea International Trade Association. After driving for about two hours, an immaculate eight-lane road opened up, leading to a sign for Xiongan New Area.

The first place I visited was the Xiongan New Area Comprehensive Service Support Center. It has not officially opened yet, but "A Matter of National Significance" was written in large red characters out front. It can be understood as being pushed as the masterpiece and culmination of the Xi Jinping era to disperse the population and functions excessively concentrated in the capital Beijing and to demonstrate the standard for future smart cities. Many buildings have already gone up in the central district, and even for unfinished buildings, tower cranes were operating non-stop to carry out construction. A high-speed rail station connecting all parts of China was also being built. Once the high-speed rail station is completed, trains will reportedly run from Hebei through Shanxi Province all the way to Kunming in Yunnan Province.

[Li Yuntao / Vice Chairman, Hebei Sub-council of the China Council for the Promotion of International Trade: "According to the national and provincial '15th Five-Year Plan,' Xiongan is scheduled to be developed into a modern city of the highest standard and quality. Specifically, there are six core industrial sectors, which include aerospace information, new materials, and artificial intelligence."]

However, there was a major difference from Shenzhen and Shanghai mentioned earlier. Xiongan New Area was built neatly centered on low-rise buildings, without any flashy skyscrapers dominated by high-rise towers. An official from Xiongan New Area explained that no building can exceed a maximum of 45 floors. Right next to Xiongan New Area lies "Baiyangdian," the largest natural wetland in North China. The official explained that strict height regulations are enforced to preserve the wetland ecosystem and prevent high building skylines from harming the natural landscape.

Xiongan New Area features a three-tier structure. Above ground, green spaces and human-centered spaces are laid out, while infrastructure such as gas, electricity, telecommunications, and logistics has all been moved underground. Sensors supporting autonomous vehicles and an artificial intelligence (AI) road network are deployed throughout the streets, and all of these facilities are controlled using real-time Internet of Things data.

You might wonder whether Beijing's functions are actually moving to this massive futuristic city in large numbers. First, under government administrative orders, headquarters of large central state-owned enterprises such as China Huaneng Group, Sinochem, and China Satellite Network Group have preemptively completed their relocations or are scheduled to move in. Prestigious universities in Beijing, such as Beijing Jiaotong University, University of Science and Technology Beijing, China University of Geosciences, and Beijing Forestry University, are also building campuses in Xiongan. A related question arose during the Q&A session, and it was explained that rather than having students attend school in Xiongan New Area sequentially starting with incoming freshmen, the entire student body—from freshmen to postgraduate students—will relocate all at once starting next year.

[Zhao Yao / Foreign Investment and Foreign Affairs Office of Xiongan New Area: "Regarding high-quality educational resources, which are one of the key pillars of development in this region, more than 20 top-tier universities from across China are scheduled to establish a presence in Xiongan. Furthermore, various support policies have also been prepared to foster overall corporate growth, industrial upgrading, and talent development."]

It was also stated that a so-called "market-driven relocation" is being pursued.

[This is the newly created science and innovation park, where around 280 companies, including those in artificial intelligence and robotics, have already registered or moved in.]

[Researcher at a tenant company in Xiongan New Area: "It's raining."]

[Robot: "I'll get an umbrella for you."]

The blueprint envisioned by the Chinese government appears clear. It aims to keep Beijing as the political and cultural center while transforming Xiongan into a new capital for advanced IT, eco-friendly research, and education. To this end, officials emphasized that they are actively contacting various entities, including high-tech companies and foreign-invested enterprises, encouraging them to visit Xiongan New Area and establish operations here.

However, there is a problem: the permanent population. Wherever one goes in Xiongan New Area, roads, buildings, and infrastructure are all impeccably prepared, yet there seemed to be very few people walking on the streets. Chinese authorities set a goal to gather a resident population of 2 million to 2.5 million by 2035. However, the currently perceived resident population stands at around 1.4 million, still falling far short of the target.

China has a household registration system known as hukou. One must hold the hukou of the city of residence to access public services such as education and healthcare in that city. Bearing this in mind, officials emphasized that Xiongan New Area is already administratively integrated with Beijing.

[Zhao Yao / Foreign Investment and Foreign Affairs Office of Xiongan New Area: "Holding a Beijing hukou (household registration) is essentially the same as holding a Xiongan New Area hukou. Simply by obtaining a residence permit in Xiongan, you can enjoy all services—such as education, medical care, and shopping—equally with local residents, just as if you were in the same city."]

However, looking at this condition from the other side, it means that state-owned enterprise employees and university faculty members can work in Xiongan on weekdays and easily return to their homes in Beijing by high-speed rail or car on weekends. In other words, while buildings and institutions can be relocated through administrative power, people's lives cannot be forcibly transplanted.

In the end, for Xiongan New Area to truly take root, it appears that two major issues must be resolved. First, relying solely on state-owned enterprises and universities that can be directed by the government has limits when it comes to sustaining a city. Therefore, drastic deregulation or tax incentives seem necessary to entice startups and private companies to move in on their own. Second is the so-called living conditions, such as children's education and cultural amenities. In simple terms, prestigious schools, general hospitals, and cultural facilities must function effectively in everyday life enough to give the impression that living in Xiongan offers a higher quality of life than living in Beijing, so that real population inflows can occur.

China has invested approximately 200 trillion won in Xiongan New Area over the past 10 years and reportedly plans to inject about 800 trillion won more. It remains to be seen whether President Xi's "millennium plan," Xiongan New Area, will move beyond tidy and excellent urban infrastructure to be reborn as a renowned city where people genuinely live, much like Shenzhen or Shanghai.

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