Known for their lotus flowers and rows of orchards, three counties, southwest of Beijing, are set for a hi-tech industrial makeover. On April 1, Chinese President Xi Jinping announced that the Xiongan New Area (XNA) would be formed from the merger of Rongcheng, Xionxian and Anxin administrative districts. The XNA will become the latest edition of China’s famous New Areas, which have been at the heart of the country’s meteoric rise and transformation into a modern economy. President Xi, with his XNA, is only following the pioneering trail carved by Deng Xiaoping, Mao Zedong’s successor. Deng was the first to establish the Shenzhen economic zone. A stone’s throw from Hong Kong, which opened a pipeline of global finance, the Shenzhen experiment established real confidence in China’s ability to leapfrog into the modern industrial age. Observed from a vantage point after the sun goes down in the hi-tech city, there is not much that separates the skyline of Shenzhen from that of Hong Kong.

Following Deng’s footsteps, his successor, Jiang Zemin, set up the Pudong New Area (PNA) — the pride of Shanghai. The Huangpu river separates the historic Shanghai from the PNA, which extends all the way to the East China Sea. Stunning high rises, such as the Oriental Pearl Tower, the Jin Mao Tower and the Shanghai World Financial Center in the PNA, impart a distinct flavour of power and commercial success to Shanghai.

Growth driver

President Xi is also planning big with the XNA. Not many details have surfaced yet, but according to a Morgan Stanley estimate, 2.4 trillion Yuan, or $290 billion, would be invested in this mega city, 160 km from Beijing. The venture, which would include new clusters of hi-tech industry, brand new universities, housing projects, schools and hospitals, is expected to add as much as 0.4 percentage points to China’s annual economic growth. It is estimated that the XNA, where 2.5 million people will eventually reside, will emerge as the largest infrastructure project in China’s history.

President Xi’s announcement has triggered a chain of events, typical of a boomtown going stratospheric. From the faraway corners of China, early-bird small businessmen and speculators, sensing mega-profits, are rushing to the upcoming city. Rentals have already shot up. However, environmental groups are voicing concerns regarding the mega plan.

It is estimated that the new mega city, where 2.5 million people will eventually reside, will emerge as the largest infrastructure project in China’s history

The Hong Kong-based South China Morning Post has reported that the Baiyang lake, around which the XNA will rise, is already in deep decay. The lake and its surrounding water bodies cover an area of 366 sq. km, forming north China’s biggest wetland. But toxic pollutants from nearby factories are channelled to the bottom of the lake through hidden pipelines. Unless urgent remedial measures are taken, copious amounts of additional waste will land up in the lake, when the area’s population rises from the current 2,00,000 to 3,00,000 to 2.5 million or more.

Han Dongmei, deputy director of the Chinese Academy of Sciences, fears the problem will get worse as the plan materialises. “It is easy to predict what will happen as more people swamp in,” she observed. The Baiyang lake could turn into an ecological “disaster”.

However, many others do not share her views. Professor Cui Baoshan, dean of the school of environment in Beijing Normal University, says plenty could still be done to save the lake. He points out that the government could shut down all polluting factories, nearby farms could use less pesticide, and water-treatment plants could be established on an industrial scale.

Atul Aneja writes for The Hindu and is based in Beijing.