China’s State Council issued a plan to build a pilot free trade zone (FTZ) in Xinjiang Uygur Autonomous Region at the end of October, pledging it will become a demonstration area for high-quality development in central and western China.
With a combined area of nearly 180 square kilometers, the zone, which covers parts of Xinjiang’s capital Urumqi as well as Kashi City and the land border port of Horgos, the FTZ will be a crucial hub for what the central government said the “dual circulation” of domestic and international markets, a core area to serve the Belt and Road Initiative, and a bridge between Europe and Asia.
The Xinjiang FTZ will have more autonomy in reform and opening-up to explore Xinjiang’s specialty and advantaged industries.
The zone in Urumqi is expected to be a center that embraces emerging and high-tech industries and an important platform to connect to neighboring countries. The Kashi sector is planned as a concentration of labor-intensive industries like the processing of agricultural products and the assembly of electronic products. Horgos will focus on cross-border logistics, tourism, financial and exhibition services, and will specialize in medicines, electronic information and new materials.
The plan lists 25 measures to improve Xinjiang’s business environment, including further facilitating trade, better sharing of resources, improving financial services, and building more logistics hubs. It also emphasizes the importance of ensuring national security and strengthening risk awareness.
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