Two major problems are evident in the planning outline of the Xiong'an New District, which has recently been approved. The first problem is the high cost of environmental carrying capacity. In the hinterland of North China is lack of water and it is difficult to support a new big city by only diverting water from the Yellow River and Reservoir. If the environmental cost is high, 3 million to 5 million people have to be transferred from Beijing for the planning to be considered successful. Second, it is unrealistic for Xiong'an to develop high-graded, precision and advanced industries at the same time. If a technocrat industrial area is artificially created, it would not be a city suitable for living.