What to do about Beijing?

Happy Monday!

This weekend I participated in the ElevenLabs Hackathon attempting to build a language learning agent. Below are links to the list of projects and my personal favorites.

• DevPost Project List

• Gibber Link (My Favorite) - Protocol for Two Agents to communicate over the phone

• LangPods - Interactive Podcasts to Learn a Language

• TalentBud - AI powered screening interviews

While my idea of building an AI Agent to help someone learn Korean, didn’t pan out, it was a great chance to explore ElevenLabs, Fal, and Lovable.

Lovable was the only “No Code LLM” that I had not tried and it was great the Lovable team let all participants use it for free for a month. The similar tools are Replit and Bolt. They all have the same problem of being initially helpful in getting an MVP stood up, but then slow to a halt after about 50 iterations, or “turns”, at which point you are better off continuing development locally.

Vercel also has v0 but it is more useful for generating UI components as opposed to apps.

I have few AI essays in the works, but this week I wanted to discuss China’s other big story. While DeepSeek and the other Chinese LLMs continue to capture the world’s attention, China’s biggest domestic story may be it’s new mega city.

Xiong’An

Last summer I traveled there, and here’s what I have found.

Beijing has a problem

Its crowded

Not “oh no, I have to wait in some traffic” crowded

But the kind of overcrowding where the city itself can not physically support anymore people

China’s solution?

A new mega city

Xiong’An

Xiong’an New Area is no ordinary urban project; it’s widely understood as President Xi Jinping’s personal endeavor to stamp his era onto China’s landscape. Much like Shenzhen became synonymous with Deng Xiaoping and Shanghai with Jiang Zemin, Xiong’an is envisioned as Xi’s signature city. As Xi himself reportedly told Hank Paulson in 2014, the Xiong’an plan was his initiative, a point underscored by Chinese analysts who see the city's success as directly linked to Xi’s prestige as a “farsighted planner.” Xiong’an, therefore, is more than just urban development; it’s a very public gauge of Xi’s governance and legacy.

Beyond political calculations, a more personal dimension may also be at play. Xi’s mother, Qi Xin, was born in Hebei’s Gaoyang County, within the Baoding region encompassing Xiong’an. This heritage subtly connects Xi to the very land he is now transforming. While not explicitly framed in familial terms, this maternal link suggests a deeper, perhaps sentimental, motivation for investing so heavily in Hebei’s development.The choice of Hebei also taps into potent historical symbolism. This region served as a crucial Communist base in the late 1940s, the springboard for the Party’s final push to Beijing and the founding of the People’s Republic. By establishing Xiong’an here, Xi subtly invokes this revolutionary past, signaling continuity and reinforcing the Party’s historical narrative. State media’s branding of Xiong’an as a “millennium plan” and a “national event” further elevates its significance, positioning it as an epochal undertaking that will define Xi’s era. This confluence of personal ambition, family roots, and historical resonance firmly establishes Xiong’an as a deeply personal project for Xi Jinping.

Xiong’an’s Genesis: Decongesting Beijing, Rebalancing Development

Officially announced on April 1, 2017, Xiong’an New Area emerged as a surprisingly ambitious plan.

The core objective is to create a secondary capital, relieving Beijing of its “non-capital functions.” Xi has been clear: Beijing remains China’s political and cultural heart, but functions like corporate headquarters, research institutions, universities, and administrative offices should migrate to Xiong’an. Essentially, Xiong’an is designed to alleviate Beijing’s burdens – population density, traffic gridlock, housing pressures – while simultaneously spurring development in the often-overlooked Hebei region.

Strategically positioned roughly equidistant from Beijing and Tianjin, Xiong’an anchors the Beijing-Tianjin-Hebei (Jing-Jin-Ji / J3) integration plan. This mega-regional strategy aims to forge a new growth engine for northern China, mirroring the economic powerhouses of the Pearl River Delta and Yangtze River Delta in the south and east. Developing Xiong’an is intended to rebalance China’s economic geography, injecting dynamism into a region often considered the country’s “rust belt.” The J3 integration is elevated to a national strategy on par with the Belt and Road Initiative, with Xiong’an at its epicenter, envisioned as a high-tech, innovation-driven hub for decades to come.

A critical component of Xiong’an’s mission is attracting institutions and State-Owned Enterprises (SOEs) from Beijing. Plans are underway to relocate SOE headquarters, government agencies, financial institutions, universities, and hospitals. Already, major SOEs like China Satellite Network Group and Sinochem Holdings have registered in Xiong’an. By 2021, around 3,800 Beijing-based enterprises, many in high-tech sectors, had established a presence.

Echoes of Shenzhen and Pudong, Yet a Distinct Model

Xiong’an inevitably invites comparisons to Shenzhen and Shanghai’s Pudong – earlier special economic zones that dramatically reshaped China. Shenzhen (est. 1980) transformed a fishing village into a global city, while Pudong (est. 1990) propelled Shanghai into a financial powerhouse. Xiong’an, too, is intended to symbolize a new era – Xi Jinping’s “New Era” of development.

However, key differences are apparent. Shenzhen and Pudong thrived on foreign investment, whereas Xiong’an’s development is primarily state-driven and domestically funded, with foreign capital not actively courted. Furthermore, Xiong’an operates under the direct supervision of the CCP Central Committee and State Council, signifying unparalleled political backing and oversight. Chinese media often touts Xiong’an as the future “Shenzhen of the North,” but its heavily state-directed approach and social engineering aspects represent a departure from the more market-oriented models of the past. While China has a history of ambitious city-building, from Mao-era industrial cities to modern special economic zones, Xiong’an’s scale, political weight, and “millennium strategy” framing place it in a unique category.

Building a “City of the Future”: Infrastructure and Innovation

Xiong’an is conceived as a high-tech, green, and people-centric urban environment, consciously avoiding the pitfalls of rapid urbanization elsewhere in China. Planners emphasize green spaces, wetland preservation, and pedestrian-friendly streets, a deliberate contrast to Beijing’s sprawling avenues. Skyscrapers and elevated highways are notably absent, replaced by a vision of a “futuristic” yet human-scaled city. Imagine smart infrastructure interwoven with 5G networks and sensors, abundant parks, and eco-conscious design.

Significant infrastructure is rapidly materializing. The Xiong’an high-speed rail station, a gleaming example, links the city to Beijing (via Daxing Airport) in under an hour.

This rail link physically integrates Xiong’an into the capital region’s transportation network. New expressways and inter-city rails further connect Xiong’an to Beijing, Tianjin, and surrounding areas, ensuring this “city of the future” is well-connected. Within Xiong’an, construction is booming: advanced public transit, energy-efficient utilities, and “smart city” systems are being built from scratch, including autonomous vehicle zones and AI-driven traffic management.

Economically, Xiong’an is positioned as an innovation and high-tech hub. Beijing’s Zhongguancun tech district plans to relocate research institutes and incubators. Tech giants like Baidu, Alibaba, and Tencent have announced offices or research centers in Xiong’an, with $380B total investment expected in the city. The government explicitly welcomes only technology and high value-added firms, with over 5,200 polluting companies in the vicinity were shut down early in the project.

In a radical departure, commercial land sales and housing speculation are permanently banned. Housing will be state-owned, provided at subsidized rents – a model akin to Singapore’s public housing. By eliminating land auctions and speculative buying, the government aims to keep living costs affordable and channel investment into productive sectors, not property bubbles.

Navigating Headwinds: Challenges and Criticisms

Building a city from the ground up is inherently complex and costly, even for China. The projected multi-billion-dollar price tag raises questions about financing and return on investment. Current funding relies on government spending, policy bank loans, and SOE funds, sparking concerns about public finances and local debt. Reports have surfaced of cost disputes and reluctance among some companies to relocate, despite official directives. SOEs, for instance, have reportedly been hesitant, wary of relocation costs and the uncertainties of a nascent city.

Xiong’an’s location around Baiyangdian Lake presents significant environmental vulnerabilities. The area is historically flood-prone, and the devastating 1963 floods serve as a stark reminder of this risk. Massive investments in flood control – levees, reservoirs, diversion channels – are essential and costly. Conversely, the region has also faced severe droughts, highlighting twin water risks. While China has initiated water diversion projects, climate variability poses ongoing threats. Environmentalists also caution about the ecological impact of urbanizing a wetland ecosystem.

Socially, transforming rural counties into a metropolis inevitably disrupts local communities. Thousands of villagers in Xiong, Rongcheng, and Anxin have been displaced. While protests have been reported, they are largely contained. Innovative compensation schemes, such as offering villagers shares in development projects and annual dividends, aim to mitigate discontent and provide a stake in Xiong’an’s success. However, displacement remains a major upheaval. Attracting outside talent is another social challenge. Despite Beijing institutions setting up branches, persuading professionals to relocate permanently to a formerly rural area is difficult. Some Chinese commentators have also drawn parallels to the Great Leap Forward, suggesting a potentially unrealistic, top-down campaign.

A State-Level Experiment: Governance and Future Trajectory

Xiong’an’s governance structure is unprecedented. Designated a “state-level New Area,” it’s directly overseen by central authorities, not provincial administration. A special Xiong’an management committee, reporting to the State Council, coordinates all planning and policy, granting it exceptional governance status. This allows Xiong’an to function as a policy laboratory. Novel approaches tested here could be replicated nationally if successful.

Key figures beyond Xi are driving Xiong’an. Xu Qin, former Shenzhen mayor, became Hebei Governor in 2017, bringing Shenzhen’s development expertise. Chen Gang, a technocrat with experience in Beijing’s tech zones, was appointed the first director of the Xiong’an administrative committee. Xu Kuangdi, former Shanghai mayor and Pudong’s architect, serves as a senior advisor, symbolically linking Pudong’s success to Xiong’an’s aspirations. Current Party Secretary Zhang Guohua and Hebei Party Secretary Ni Yuefeng also play crucial roles. The involvement of these high-ranking officials and experts demonstrates Xiong’an’s national priority status.

The key initiatives for Xiong'An include:

The "Three Cities" Concept

A city above ground; an underground city of commercial centers, transportation, and pipelines (for fiber optic cables, electricity, gas, water, and sewage); and a cloud-based city that will provide data for smart transportation, digital governance, and intelligent services .

The "1+4+26" Plan

This system consists of a single master guideline (Guideline for Planning of Hebei Xiong’an New Area), four regional and sectorial overall plans, and 26 specialized plans for aspects such as flood prevention, disaster response, energy, and integrated transportation.

One University, Two Campuses

Focused on Beijing’s leading universities establishing satellite campuses in Xiong’an to support the industrial and technological development needs of the new city

Xiong’an New Area is among China’s most ambitious 21st-century projects – a deliberately designed city intended to serve national strategic goals and embody Xi Jinping’s vision for China’s future. It aims to showcase Chinese innovation in urban planning, economic restructuring, and environmental sustainability. However, Xiong’an must navigate significant challenges: financing, flood risks, attracting residents and businesses, and managing social disruption. Xiong’an’s story is still unfolding.

The coming decades will reveal whether it fulfills its promise as a “model city” or becomes a cautionary tale of overreach. For now, it stands as a bold, high-stakes experiment – a “dream city” inextricably linked to Xi Jinping’s legacy and China’s future.