He has ordered that a modern urban district should be built at a suitable location in Hebei, guided by new development concepts.

During an inspection tour to Hebei on Feb. 23, Xi called for "world vision, international standards, Chinese characteristics and high goals" in the planning and construction of the area.

He called for efforts to build Xiongan into "a demonstration area for innovative development."

The area should prioritize ecological protection, improve people's well-being as well as protect and carry forward Chinese traditional culture, he said.

The Xiongan New Area covers the counties of Xiongxian, Rongcheng and Anxin, and is home to Baiyangdian, northern China's largest freshwater wetland.

The area features geological advantages, convenient transportation, an excellent ecological environment, ample resources and lots of room for development, according to the circular.

Saturday's announcement was the latest step in China's efforts to cure severe "urban ills," such as traffic congestion and air pollution in Beijing by curbing the capital's population growth and moving certain non-essential facilities, including manufacturing and logistics, to nearby regions.

A number of wholesale markets in the city's central areas have been shut down or relocated, and some of Beijing's city administration is planned to be moved out of the city center to the eastern suburbs in Tongzhou.

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