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"Going back to Beijing will be more convenient and it's like the capital and Xiongan form one whole city," he said.

"For a foreign bank in China, borrowing medium to long-term funds from its parent bank will improve its liquidity. This may help the bank's asset side business but the money borrowed is in US dollars, which is on the rise, whereas the loans granted are in renminbi, so the return may not be as direct," Xie said.

"From the perspective of direct banks themselves, meanwhile, they don't have a clear strategic positioning, which results in overlapping of business with traditional banks."

"Financial support such as special funds are available for key development projects, and numerous pilot programs are also underway across the country, including the IoT industrial development clusters in the Bohai Sea Rim, the Yangtze River Delta and the Pearl River Delta regions," said Sun Fuquan, a researcher at the Beijing-based Chinese Academy of Science and Technology for Development.

"Google has already got the monopolistic position, has invested billions in infrastructure, AI, technologies, software, engineering and talent. You can't simply unwind a decade of significant progress, or create new alternative powerhouses or tech ecosystems out of thin air."