China’s $93 billion ‘dream city’ remains empty, casting doubts on Xi’s megaproject

Located 60 miles outside Beijing, Xiongan was envisioned as a modern socialist metropolis that would attract top industries, state-run companies, and millions of new residents.

Xiongan, a $93 billion futuristic city championed by Chinese President Xi Jinping, was built to ease Beijing’s overcrowding and showcase China’s urban planning prowess. But despite rapid construction and government backing, the city remains eerily empty, raising concerns about its future viability, The Wall Street Journal reported.

Located 60 miles outside Beijing, Xiongan was envisioned as a modern socialist metropolis that would attract top industries, state-run companies, and millions of new residents. Once farmland and swamps, the city was transformed in under a decade, featuring sprawling residential complexes, government offices, and one of China’s largest train stations, designed to handle 100,000 passengers per day.

However, when The Wall Street Journal visited the station, it was largely silent, with only cleaning staff and security personnel visible. Across the city, meticulously planned infrastructure stands mostly unused, and despite official claims that 1.2 million people live in Xiongan, much of this figure includes incorporated surrounding areas, rather than actual newcomers.

The city’s development has come at a steep cost. To make way for Xiongan, entire villages were flattened, displacing thousands of residents who were given compensation that fell short of expectations. During the devastating 2023 floods, authorities diverted floodwaters away from Xiongan into nearby towns and villages, sparking rare public protests as residents accused the government of sacrificing their homes to protect Xi’s flagship project.

Unlike the chaotic, rapid rise of Shenzhen—a major success of China’s economic reforms—Xiongan has strict regulations, including caps on building heights, government-imposed price controls on housing, and limits on which industries can set up there. While state-run firms and institutions have relocated, private businesses and residents have been slow to follow. The primary source of employment remains construction, rather than diversified industries that could sustain long-term growth.

Experts note that Xi has invested too much political capital in Xiongan to abandon it. Authorities project that 5 million people will eventually settle in the city, but China’s economic slowdown, decoupling from the West, and declining population growth raise serious doubts about these ambitions.

Whether Xiongan will evolve into a symbol of China’s future urban planning success or a failed vanity project remains to be seen. For now, it stands largely empty, a city built with immense ambition but still waiting for its people, The Wall Street Journal reported.