China announced Saturday it would establish the Xiongan New Area in Hebei Province, as part of measures to advance the coordinated development of the Beijing-Tianjin-Hebei (BTH) region.

This is another new area with national significance after the Shenzhen Special Economic Zone and the Shanghai Pudong New Area, according to a circular issued by the Communist Party of China (CPC) Central Committee and the State Council.

The move is a “major historic and strategic choice made by the CPC Central Committee with Comrade Xi Jinping as the core,” said the circular.

The New Area, about 100 km southwest of downtown Beijing, will span three counties that sit at the center of the triangular area formed by Beijing, Tianjin and Hebei’s provincial capital Shijiazhuang.

The move will help phase out non-capital functions from Beijing, explore a new model of optimized development in densely-populated areas, and restructure the urban layout in the BTH region, according to the circular.

The New Area will cover around 100 square km initially and will be expanded to 200 square km in mid-term and about 2,000 square km in the long-term.