The Chinese Central Government has established several special zones since Deng Xiaoping in order to experiment with free-market oriented policies and to promote private and foreign investments. One of the main reasons for establishing this New Area is to broaden institutional reform, to promote, and focus on more environmentally friendly green cities in line with China’s 13th Five Year Plan. The establishment of this new area- with a focus on sustainability- could be a great opportunity for the Netherlands and Dutch expertise in the area of urban planning, water management and – midterm – high-tech agriculture, since 85% of the Baiyangdian Lake is located in this area. The Chinese government pays extra attention to water usage, focusing on sustainable development, and searching for new ways to create smart cities.