At least 40 central State-owned enterprises (SOEs) have given their strong backing to the construction of China’s Xiong'an New Area. Experts said the companies’ firm support can facilitate the industrial layout of the economic zone, while the area can provide a new growth pole for the companies' own development.

“SOE participation in Xiong'an construction not only brings investment, talents and advanced technologies to the new area, it also brings economic benefits for companies that participate, helping them to upgrade their industrial structure and digesting excess production capacity,” Li Jin, chief researcher at the China Institute for Small and Medium Enterprises, told the Beijing Times.

According to experts, authorities will not allow companies into Xiong'an at random. The first batch of participants will help to realize urgent goals for the economic zone’s construction. Xiongan New Area will primarily be the receiver of non-capital functions from Beijing, including some administrative and public institutions, company headquarters, financial institutions, higher education institutions and sci-tech units.

“Companies whose main business is related to infrastructure, transportation, electricity, energy will be the first participants in constructing the new area,” explained Li.

President Xi Jinping has stressed on many occasions that ecological protection and innovative development should be priorities in any construction. Many enterprises have therefore dedicated themselves to building a green, smart city.

According to the Beijing Times, telecom giants China Mobile, China Unicom and China Telecom will test a number of advanced technologies in the new economic zone, establishing a 5G network and new-generation NB-IoT. Energy companies including China National Offshore Oil Corporation have decided to promote the use of clean energy in the region, with a focus on geothermal and wind energy.

“In addition to infrastructure, the establishment of a new city requires a huge population, meaning that the service industry will also play an important role in the development of Xion'gan,” said Mao Shoulong, a professor at Renmin University of China.

In order to provide better public services and management for the new area’s construction, financial institutes have also joined the cause. National banks, including the Industrial and Commercial Bank of China, have announced new branches in Xiong'an, helping to satisfy the financial needs of those based in the economic zone.

The new area, which was announced on April 1, is about 100 kilometers southeast of Beijing. It covers three counties - Xiongxian, Rongcheng and Anxin – and is located at the center of the triangular area formed by Beijing, Tianjin and Shijiazhuang, Hebei's capital.