Chinese corporate behemoths Alibaba Group Holding Ltd, Tencent Holdings Ltd and Baidu Inc will set up branches in China's Xiongan New Area.
They are among the first batch of 48 companies that have been approved to be set up in this new economic area. The move is part of the government's endeavor to expedite the construction of the Xiongan New Area in Hebei province.
The new area was announced earlier this year. The project aims to relieve the pressure of population on Beijing and build another economic powerhouse along the lines of those built near Shenzhen and Shanghai.
Alibaba announced on Friday it will set up three subsidiaries in Xiongan with a total registered capital of 160 million yuan ($24 million).
Ren Geng, general manager responsible for Alibaba's business in Xiongan, said: "We will cooperate with the Xiongan New Area mainly in artificial intelligence, fintech and intelligent logistics to add a smart 'brain' to Xiongan to help it function in a well-rounded way."
According to the administrative committee of Xiongan, among the 48 enterprises in the first batch to be set up in the area, 14 will focus on information technology, 15 on financial services and seven on high-end technology.
Xiongan will be built as an eco-friendly smart city. Four key business segments－environmental protection, traffic sensors, large data analysis and artificial intelligence－are to be its driving forces.
Internet-based business player Tencent on Tuesday also set up a subsidiary in the new area with a registered capital of 20 million yuan, according to Tianyancha, an enterprise data query system.
The affiliate, in which Shenzhen-based Tencent holds a 90 percent stake, will provide services like software and hardware design, data processing and storage.
"As the first group of internet-based firms entering the Xiongan New Area, Tencent will help promote its development with our rich experience in smart city, smart transportation and the internet of things," said a Tencent executive.
Half of the first group of 48 companies are from Beijing while 13 are Shenzhen-based. And 19 firms are central SOEs while 21 are private firms.
In all, 21 are private firms. Among them are Jingdong Finance, 360 Qihoo, Shenzhen Kuang-Chi, China Telecom, People's Insurance Company of China and the State Development & Investment Corporation.
From China Daily