China: Legal Thoughts On The Construction Of Xiongan New Area

Last Updated: 3 July 2018
Article by Harrison Jia

On April 14th, 2018, the Central Committee of the Communist Party of China and the State Council issued the "Official Reply about the Planning Outline of Hebei Xiongan New Area" and approved "The Planning Outline of Hebei Xiongan New Area" ("Xiongan Planning Outline"), which took one to two years to be completed. Out of 279 overseas and domestic planning institutions, 12 top-tier teams were selected to conduct international consulting on the planning of the Xiongan New Area. More than 60 academicians and masters in architecture field and 300 other famous experts including Wu Liangyong, Zhang Jinqiu, Wu Hequan participated throughout the process of the drawing-up of the planning. For the purpose to actively participate in the construction of Xiongan New Area, DeHeng Law Offices established its office in Xiongan New Area and formed strategic relationship with local partners in order to provide legal support for the construction of Xiongan New Area. In respect of the legal perspective, the following issues should be paid attention to:

1. Connecting the Construction of Xiongan New Area and Beijing City

The establishment of Xiongan New Area is closely connected with the aim of reliving Beijing from its non-capital roles. Chairman Xi pointed out in the report of the 19th CPC National Congress that the aim of relieving Beijing of its non-capital roles is an opportunity to enhance the collective development of Beijing, Tianjin and Hebei Province by planning at a high standard and building according to such high standard. Pursuant to the "Beijing City Overall Planning (2016-2035)", Beijing's strategic position is the national political center, the cultural center, the international exchange center, and the technology innovation center. By 2020, Beijing's permanent resident population should be within 23 million and remain at this level afterwards. The "Beijing City Overall Planning (2016-2035)" also mentioned to connect in full dimension and actively support the construction of Xiongan New Area, ensuring the transfer of its non-capital functions and populations to Xiongan New Area and enable Xiongan New Area to shoulder such non-capital functions.

In respect of connecting Xiongan's development with Beijing, the construction of Xiongan New Area needs to actively shoulder Beijing's non-capital functions and surplus populations. The "Beijing City Overall Planning (2016-2035)" indicates the support to orderly transfer key resources to Xiongan New Area such as administrative institutions, business headquarters, financial institutions, higher education institutions , technology research institutes, and hospitals. The "Xiongan Planning Outline" pointed out the key of shouldering Beijing's non-capital functions is to specify what those functions are. In terms of higher education institutions and technological research institutes, it is very important that they set up campus, divisional institute, and graduate schools there and Xiongan New Area needs to accommodate national technological institutes and innovative centers such as state key laboratory and various project research centers. In terms of health care institutions, it is encouraged that top tier health care institutions set up branches and research centers in Xiongan New Area and strengthen cooperation with international health care institutions. In terms of financial institutions, Xiongan New Area needs to accommodate headquarters as well as branches of banks, insurance companies, and security firms and it is encouraged that these firms should carry out innovative financial services. In terms of top tier service industries, Xiongan New Area may give priority to software and information service, design, innovation, consulting services, etc., and this list includes headquarters of modern logistics, e-commerce services and so on. In terms of high-tech industries, it is suggested to give priority to state owned enterprises, innovative private businesses, or innovative technology companies in the field of new generation information technology, biological medicine, biological health, energy conservation, environmental protection, top tier new materials, etc. Zhongguancun Science and Technology Park is encouraged to set up a divisional campus in Xiongan New Area.

What should be noted is that, according to the "Planning Outline of the Coordinated Development of Beijing-Tianjin-Hebei Region", there are four types of non-capital functions that need to be relieved and the focus should be common industries, in particular, high energy-consuming industry; tertiary industry sectors such as regional logistic base, regional specific market, etc.; social public service functions such as education, health care, and training institutions; administrative, not-for-profit institutions and business headquarters. The aforesaid four types of non-capital functions differ from the sectors to be encouraged in the "Xiongan Planning Outline", e.g. high energy-consuming industries, regional logistic base, and regional specialized markets are not included and while modern logistics and e-commerce company headquarters are included.

2. Connecting Xiongan's Development with Hebei Province

The "Planning Outline of the Coordinated Development of Beijing-Tianjin-Hebei Region" defines Hebei Province as "an important base for national modern commercial logistics, the experimental field for evolution of industries, the model area for new forms of urbanization and whole-planning urban and rural areas, the supporting area for environments of Beijing-Tianjin-Hebei region". In terms of the development in both Xiongan New Area and Hebei Province, the following issues should be paid attention to:

(1) Strengthening the development of environmental protection is the key to the successful development of Xiongan New Area

The "Xiongan Planning Outline" pointed out the need to strengthen the development of environmental protection and building up the environmental system in Xiongan New Area. The aim is to build an integrated biological city. The first step is to restore the biological balance of the Baiyang Lake in order to recover its "kidney" function of Chinese northern areas. The second step is to build greenery around the Baiyang Lake and throughout Xiongan New Area in order to maintain the biological structure between Xiongan New Area and its surroundings. Thirdly, nine stripes of forests are to be maintained between cities in order to enhance carbon sequestration and ensure bio-diversity. Lastly, along main courses of rivers and roads around Xiongan New Area, it is to build multiple greeneries with the ventilation purpose.

The building of biologically balanced environment is the key to the successful development of Xiongan New Area. However, Hebei Province still faces various environmental problems such as the tension between the environment and economic development. Shijiazhuang City Committee's Vice Secretary Mr. Zhang Zefeng once said "in order to build a supportive area for the biological environment of Beijing, Tianjin, and Hebei, Hebei Province needs to step up the pressure on itself", and such task is a hard one but must be overcome. 1

(2) Enhancing the development of transportation infrastructure and promoting the development of commercial logistics

According to the requirements regarding network layout, smart management, and integrated services, the "Xiongan Planning Outline" pointed out the need to accelerate the connecting of the construction of Xiongan New Area and Beijing, Tianjin as well as other surrounding cities, build the transportation network between Beijing's new airports and build general transportation network, including:

  1. Building regional high railway transportation network of "Four Verticals and Two Horizontals" 2 with particular emphasis on strengthening the connections between Xiongan New Area and Beijing, Tianjin, Shijiazhuang and other cities. It is important to realize the effective integration of the Xiongan New Area into rail network between Beijing, Tianjin, and Hebei and make it 20 minutes to arrive at Beijing New Airport, 30 minutes to Beijing and Tianjin, and 60 minutes to Shijiazhuang.
  2. Developing regional highway network of "Four Verticals and Three Horizontals" 3. It is to realize the 60 minutes transportation from Xiongan New Area to Beijing and Tianjin and 90 minutes to Shijiazhuang by highway. It is also important to connect the transportation between Xiongan New Area, Tianjin Harbor and Port of Huanghua and make access to sea for Xiongan New Area.
  3. Enhancing the service level of airlines. It is to strengthen the speedy and efficient connection between Xiongan New Area and Beijing New Capital Airport, Beijing Capital International Airport, Tianjin Binhai Airport, and Shijiazhuang Zhengding Airport by high speed railway and highway network.
  4. Making reasonable layout of comprehensive transportation hub and forming the "Two Principals and Two Supplements"4 transportation hub.

The improvement of transportation infrastructure will be helpful to the development of modern commercial logistics industry. The areas of Beijing, Tianjin and Hebei have 120 million consumers with total sales of goods and the added value of the logistics industry each accounting for 23% and 12% nationally, being one of the most active and concentrated areas nationally in respect of commercial logistics activities. The "Xiongan Planning Outline" has indicated certain industries as important industries to be developed including business services, smart logistics, modern supply chains, etc. In 2016, the Hebei People's Government issued the "Notice about Printing and Issuing the Plan about Hebei Province to Build Nationally Important Base for Modern Commercial Logistics" and pointed out that the core is to serve Beijing and Tianjin, develop Hebei Province, utilize Hebei Province's position and resource advantages, develop the spatial structure of "One Circle, Two channels and Multiple Nodes" 5 commercial logistics, further develop commercial logistics industry, and make it into a new foundational industry as soon as possible. 6

3. Connecting the Development of Xiongan New Area with Tianjin City

The "Planning Outline of the Coordinated Development of Beijing-Tianjin-Hebei Region" defines Tianjin City as the "nationally advanced base for manufacturing and R&D, the international airline core area of Chinese northern part, the modal area for financial innovation and the pioneering area for opening-up". Tianjin provides Xiongan New Area with access to the sea by highway network and it is important to strengthen Xiongan New Area's transportation connection with Tianjin Harbor and Huanghua Port. Additionally, the development of Xiongan New Area can attract Tianjin's technology and investments. In April of 2017, Tianjin and Xiongan New Area signed the "Strategic Cooperation Agreement about Promoting the Development of Xiongan New Area between Hebei Province and Tianjin People's Government". According to the news report, Tianjin City Committee's Secretary Li Hongzhong pointed out that Tianjin Municipal Committee and the government will actively serve and support the development of Xiongan New Area and provide any supports necessary in this regard. Tianjin will actively study the advanced concepts behind Xiongan New Area's development and use it to promote the construction process of Tianjin. It is therefore necessary for Hebei Province and Tianjin to better work together and enable them to connect with each other in full dimensions in order to realize the national strategy of the construction of Xiongan New Area . 7

Footnotes

1."Hebei: Forging an Area that Supports Beijing, Tianjin and Hebei Ecological Environment", 2016-01-13, Source: 'Guangming Daily'(03 edition)

2."Four Verticals" refers to Beijing and Guangzhou High-Speed Rail, Beijing, Hongkong and Taiwan High-Speed Rail – Xiongshangduan, Jingxiong – Shixiongchengji, New Area to Beijing New Airport Express; "Two Horizontals" refers to Jinbao Railway, Jinxiongchengji – Jingkun High-Speed Rail Xinxiongduan'

3. "Four Verticals" refers to Beijing, Hongkong and Macao High-Speed Rail, Daguang Highway, Jingxiong Highway (including New Airport Northern high-speed sub-line), New Airport to Dezhou Highway; "Three Horizontals" refers to Rongwu Highway New Line, Jinxiong Highway, Jinshi Highway.

4. "Two Principals" refers to Xiongan High-Speed Rail Station, Intercity Station, the hub of high-speed rail converges on Zangang and connecting nationally by relying national network of high-speed rail; the layout of intercity station hub is situated in the commencing area, integrating the station with cities involved, in order to realize the direct link between Beijing, Tianjin and Hebei's core municipalities. 'Two Supplements' refers to Baiyang Lake Station, Baigou Station, relying on existing lines, servicing New Area's outer northern area, also making room for logistics activities.

5. "One Circle" refers to converging area for commercial logistics industries around the capital; "Two Channels" refers to eastern and western bulk commodity channel and southern and northern general logistic channel; 'Multiple Nodes' refers to each city's important logistics hubs, 100 county's special logistics markets and 100 commercial exchange centers.

6. Hebei People's Government issued the "Plan of Hebei Province for Developing Important Base for National Modern Commercial Logistics (2016-2020)", 2016-05-09, Source: Commerce Ministry Department for the Development of Logistics Industry.

7. "Li Hongzhong Serveyed Xiongan New Area: We will implement everything if Tianjin is asked for", 2017-04-19, Source: Sina General.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
 
Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
 
Related Articles
 
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions