Eighty percent of the Xiongan New Area’s economic growth will come from high-end and high-tech industries, a government official said on Monday.

The central government has called for more advanced, cutting-edge industries in Xiongan and does not encourage Xiongan to introduce mature industries that have reached a scale of trillions of yuan in other areas, said Wu Hequan, deputy head of the expert advisory committee on the collaborative development of Beijing, Tianjin and Hebei under the State Council, in an interview. 

In its master plan for Xiongan New Area, development will focus on new high-tech industries such as information technology.

Xiongan will start from high-end chip designing and key software development, giving priority to a new generation of information technology industry, modern life science and biotechnology industries, and new material industries.

Meanwhile, an industrial base will be built to support Xiong'an New Area to transform it into a digital city, with innovation as its growth engine.

The zone will also become a new growth pole for the Beijing-Tianjin-Hebei region.

Xiongan New Area will explore new development models while incubating high-end high-tech industries.

The Xiongan New Area’s GDP is more than 20 billion yuan ($3.14 billion), with industries lacking in branding and added value, such as bags and suitcases, wires and cables, shoes and clothing.

These industries will be categorized and managed accordingly, Wu said.

He explained that some will be closed and relocated, while others will be upgraded using digital technology and energy-effective technology.