Xiongan New Area in Hebei province is intensifying efforts to attract high-value technology companies as part of its broader plan to establish a robust local industrial ecosystem. Established in 2017 to alleviate congestion in Beijing by relocating state-owned institutions and to spur regional economic growth, Xiongan has shifted focus from hosting relocated state enterprises toward nurturing homegrown tech industries, according to officials and sources familiar with the area’s development strategy.
Officials aim to recruit technology firms capable of reaching valuations of 10 billion yuan (approximately HK$11.7 billion) and anticipate that some of these companies may pursue public listings on stock exchanges, including Hong Kong’s, within the coming years. Priority sectors for development include artificial intelligence, satellite internet, and robotics. The initiative forms part of a three-year plan known as “511,” which seeks to cultivate five companies valued above 10 billion yuan, 10 companies valued above 5 billion yuan, and 100 core enterprises, according to local government representatives.
Xiongan spans three counties about 100 kilometers southwest of Beijing and was originally designed to accommodate relocated universities and state-owned enterprises, thereby reducing pressure on the capital. Key state-owned firms, including China Satellite Network Group and China Huaneng, have shifted their headquarters to Xiongan, anchoring the initial phase of industrial migration. Since 2023, the area has attracted 157 subsidiaries of central state-owned enterprises from second and third tiers.
However, industry observers and experts caution that the mere relocation of corporate headquarters does not guarantee the establishment of a sustainable technology industry without attracting associated suppliers, research institutions, and business operations. One source involved in policymaking described the move as acquiring “a building rather than a supply chain.” To address this, Xiongan authorities issued measures in April mandating officials to map the supply chains of relocated state firms and to encourage private companies to engage in procurement, technical research, and new application testing alongside these enterprises.
China Satellite Network Group exemplifies this approach. After moving its headquarters to Xiongan in early 2024, it had by September become the cornerstone of a 69-firm aerospace information cluster, according to official data.
In addition to large firms, Xiongan is attracting laid-off tech professionals and solo entrepreneurs from Beijing, who seek opportunities to launch small ventures amid advancements in artificial intelligence. Workshops held at Xiongan AI Industry Park have enabled participants to develop AI-assisted WeChat mini-programmes, serving as low-cost prototypes and tools for managing emerging one-person companies (OPCs).
To support such startups, Xiongan has established dedicated incubators and provided subsidized computing resources. Since May, four AI-focused OPC communities have opened, offering over 60,000 square meters of space as well as assistance with company registration, training, and legal services. These efforts reflect Xiongan’s broader ambition to foster a diversified and sustainable technological ecosystem beyond the initial wave of relocated state-owned enterprises.