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‘Invisible Hand’ draws a banner on project Xi

China’s development project sponsored by President Xi Jinping has been plagued by controversy over funding and the company’s refusal to relocate, according to local officials and residents.

Xiong’an, located in central Hebei about 130 miles from Beijing’s Communist Party, was chosen by Xi as the “new location” in 2017.

The project is central to the idea of ​​a Chinese President with a small and dilapidated headquarters, while hundreds of government agencies and government agencies want to move to Xiong’an.

They are also made to do so remove Xi inheritance, as the Shenzhen transition south of Guangdong province did to Deng Xiaoping.

Xiong’an, with a population of 1.3m, is already home to the largest mansion in the world subway passengers down, which went into effect in December. But it is an economic backlog, with dirt roads, buildings, and construction sites.

During a recent week-long trip, only 30 seats over 2,200 in the waiting hall of Xiong’an station, which cost more than Rmb30bn ($ 4.6bn) to build, remained.

“Xiong’an is an intermediate structure that opposes market principles,” said Zhuang Bo, a Chinese economist at TS Lombard, a London consultant. “It’s difficult to get up because the hand is invisible [of the market] they affect the people more than the government. ”

Xiong’an may be the backbone of the economy but its railway station is one of the largest in the world © Photo by East Reuters Conne

Jobs are nearing completion by the end of 2023, with Xi expected to begin the third time which has never happened as President, it will cost Rmb146bn. But China Xiong’an Group, the region’s first operating vehicle, had only Rmb749m in long-term debt in the first seven months of last year.

People close to CXG, controlled by the heavily indebted Hebei government, said the company wants to raise debt. Hebei state debt, except for rent Vehicles operated by the local government, was Rmb1.1tn at the end of last year, up from Rmb615bn in 2017.

The state government that has the money instead wants the government to have more money to build on the time that Xi officials want rein in motivational ways was released last year in the wake of the China Covid-19 explosion.

“The consequences of this war are much slower than they expected,” said an official in Xiong’an, who asked not to be named. “There is no guarantee that CXG will make enough money to repay the debt. Hebei has to intervene when things go awry. ”

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Some people complain that Xi’s work has resulted in huge home prices. When the President’s Vision was unveiled in 2017, soothsayers from all over China came down to Xiong’an to buy land.

In response, local authorities suspended many real estate transactions, forcing sellers and forcing buyers to pay rent while waiting for their homes to be renovated.

Li Yang, a 35-year-old office worker, said his rent had tripled in the last four years while waiting for the house he bought in 2016 to be completed.

“As a result of government regulations I spend most of my money on rent and repaying an unfinished mortgage without a deadline,” he said.

Local officials, in turn, blamed the federal government for the Li, saying it was Beijing’s turn to lift the ban. “President Xi has said we will not start construction until the use of every inch is fixed,” a Xiong’an landlord, who did not want to be named, told the Financial Times.

Restrictions on employment hamper access to housing and increase financial pressure on the government © Oriental Image via Reuters

The ban on construction has also exacerbated the financial crisis on CXG by the government, which relies on real estate sales for most of its revenue. Xiong’an government revenue was Rmb3.3bn last year, 25% below.

Another drag on the local economy, already known for its clothing and plastics industries, is the forced closure or relocation of more than 4,000 factories. The garbage companies did not agree with Xiong’an’s idea of ​​pure, green Xig’an and had to devise a way to enter into business with government officials and partners from Beijing.

Due to the closure of the factory, unemployment is rampant. Xiong’an created less than 10,000 jobs in towns in 2019, compared to a target of 40,000.

In a report published last year, Lin Shunli, a professor at the University of Hebei, said the shift in corporate work had made it a “big job” for local jobs, which had reduced household income while young people had been “unemployed for a long time”.

“We will also benefit a little from the advent of SOEs,” said Sh Shshshan, a retailer. “They want people with a college degree that few locals have.”

Many state-owned and self-employed companies are reluctant to relocate to Xiong’an, where there are no humanitarian services in Beijing.

“It will take many years for Xiong’an to meet Beijing when it comes to good schools and hospitals,” said a senior SOE official who was ordered to evacuate. “We are concerned about the loss of co-workers after the relocation.”

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