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The Next Shanghai, or a 1,000-Trillion-Won Gamble? Inside Xi Jinping’s "Millennial Project" Xiongan

Choi Go-un

Published : Oct 23, 2026 11:26 AM

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1. Visiting China’s Third New Area, the Xiongan New Area
Throughout modern Chinese history, prominent leaders have always left behind a "city" symbolizing their policy philosophy. For example, Deng Xiaoping, who emphasized reform and opening-up, turned Shenzhen—where the upcoming APEC summit is scheduled to be held next month—into a special economic zone to boost the economy. During the era of Jiang Zemin, Shanghai's Pudong was developed into a financial hub. The third new city being built under state leadership is the Xiongan New Area, a name that is somewhat difficult to pronounce. Geographically, Xiongan is a small town in Hebei Province, located just south of Beijing and Tianjin. It is an economic zone spanning three counties—Xiongxian, Rongcheng, and Anxin—and is named by taking the first characters of each. I had the opportunity to visit the area by participating in an inspection program hosted by the Beijing office of the Korea International Trade Association. After a two-hour car ride, immaculate eight-lane round-trip roads unfolded, followed by a sign for the Xiongan New Area. The first place I visited was the Xiongan New Area Comprehensive Service Support Center. It had not officially opened yet, but "National Grand Strategy" was written in very large red characters at the front. It is safe to understand this as the culmination and masterpiece of the Xi Jinping era, aimed at decentralizing the population and functions excessively concentrated in the capital, Beijing, and showcasing the standard of a future intelligent city. Many buildings have already sprung up in the central district, and tower cranes were moving restlessly to continue construction on unfinished structures. A high-speed railway station connecting all of China was also being built. Once completed, the high-speed rail will allow travel from Hebei, through Shanxi Province, all the way to Kunming in Yunnan Province.

[Li Yuntao / Vice Chairman, Hebei Council for the Promotion of International Trade: According to national and provincial 15th Five-Year Plans, Xiongan is set to be developed into a modern city with the highest level and quality. Specifically, there are six core industrial fields. These include aerospace information, new materials, and artificial intelligence.]

2. How Is It Different from Shenzhen and Shanghai?
However, there were significant differences from Shenzhen and Shanghai mentioned earlier. The Xiongan New Area was constructed neatly with low-rise buildings, completely lacking the flashy, high-rise skyscrapers typical of those cities. An official from the Xiongan New Area explained that no building is allowed to exceed a maximum of 45 floors. Right next to the Xiongan New Area lies Baiyangdian, the largest natural wetland in northern China. The official explained that height regulations are strictly enforced to preserve the wetland ecosystem and prevent tall building skylines from ruining the natural landscape. The Xiongan New Area features a triple-layered structure. Green spaces and pedestrian-centered areas are placed on the surface, while infrastructure such as gas, electricity, communications, and logistics are entirely placed underground. Sensors supporting autonomous vehicles and an artificial intelligence (AI) road network are paved across the roads, and all these facilities are controlled by real-time Internet of Things data.

3. How Much Has Been Relocated from Beijing?
Now, you might be wondering whether Beijing's functions are actually relocating in large numbers to this gigantic future city. First, following government administrative orders, major central state-owned enterprise headquarters—such as China Huaneng Group, Sinochem, and China Satellite Network—have already completed their preemptive relocations or are scheduled to move. Prominent 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. For instance, rather than having students move sequentially starting from incoming freshmen, the plan involves entire student bodies—from freshmen to graduate students—moving wholesale starting next year.

[Zhao Yao / Foreign Investment and Foreign Affairs Department, Xiongan New Area: Regarding high-quality educational resources, which is one of the core elements of this region's development, more than 20 top-tier universities from across China are scheduled to enter Xiongan. Furthermore, various support policies have been established to promote overall corporate growth, industrial upgrading, and talent cultivation.]

They noted that so-called "market-driven relocation" is also being pursued.

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

[Xiongan New Area resident corporate researcher: It's starting to rain.]
[Robot: I will get you an umbrella.]

The blueprint drawn by the Chinese government seems clear. Beijing will remain the political and cultural center, while Xiongan will be forged into a new capital for advanced IT, eco-friendly research, and education. To achieve this, they emphasized that they are actively reaching out to various entities such as high-tech companies and foreign-invested enterprises to encourage visits to the Xiongan New Area and establish bases there.

4. Infrastructure is Fully Built, But There Are No "People"
However, there is a problem: the resident population. No matter where you look around the Xiongan New Area, roads, buildings, and infrastructure are impeccably well-equipped, but there appeared to be far too few people walking on the streets. Chinese authorities have set a goal to gather a resident population of 2 million to 2.5 million by 2035. However, the currently perceived resident population is only around 1.4 million, falling far short of the target. China has a household registration system called Hukou. To receive public services such as education or medical care in a given city, one must hold that city's Hukou. Keeping this in mind, the Xiongan New Area emphasized that it has already achieved administrative integration with Beijing.

[Zhao Yao / Foreign Investment and Foreign Affairs Department, Xiongan New Area: If you hold a Beijing Hukou, it is the same as holding a Hukou in the Xiongan New Area. Simply by being issued a residence permit in Xiongan, you can enjoy all services—such as education, medical care, and shopping—identically to local residents, as if you were in the same city.]

However, turning this condition around means that state-owned enterprise employees and faculty members can work in Xiongan during weekdays and return to their homes in Beijing by high-speed rail or car whenever the weekend arrives. This is because, while administrative power can move buildings and institutions, it cannot forcibly relocate people's actual lives.

5. What Is Needed for Xiongan New Area to Take Root
Ultimately, for the Xiongan New Area to take root, two major issues appear to need resolution. First, relying solely on state-owned enterprises and universities that can be commanded by the government has limitations in sustaining a city. Therefore, dramatic deregulation and tax benefits seem necessary so that startups and private enterprises can seek it out on their own. Second are the so-called settlement conditions, such as children's education and cultural facilities. In plain terms, true population inflow will only happen when elite schools, general hospitals, and cultural facilities operate within daily life to an extent that gives people the perception that the quality of life living in Xiongan is higher than in Beijing. Over the past decade, China has poured approximately 200 trillion won of Korean currency into the Xiongan New Area and plans to inject about 800 trillion more going forward. We must wait and see whether President Xi's "Millennial Project," the Xiongan New Area, will transcend clean and magnificent infrastructure to be reborn as a renowned city where people genuinely live, much like Shenzhen or Shanghai.

(Reported by Choi Go-un | Produced by Shin Hee-sub | Video by Yang A-ta | Video Editing by Hong Jin-young | Design by Yang Hye-min | Source: Douyin | Produced by SBS Digital News)