XINJIANG UYGUR AUTONOMOUS REGION 

General Background

 

Xinjiang - abbreviated as Xin - is located in the Northwest region.  Xinjiang is the largest autonomous region of China.  Separated by the Tianshan Mountain, Xinjiang is divided into NanJiang, BeiJiang and DongJiang.  The world's largest inland basin Tarim basin, and the second largest float desert Takla Makan Desert are found in the region.  The region's capital is Urumqi which enjoys the same preferential policies as a coastal city.

Major ethnic groups in the region are Uygur and Han, accounting for 47% and 39% of the region's population respectively.  Other ethnic groups include Kazak, Hui, Kirgiz, Mongolian, Tatar, Daur, Xibe, Russian, Tajik and Uzbek.

Xinjiang is China's largest growing base of cotton and hops.  Output of cotton and hops in 1999 accounted for 33% and 80% of the countryˇs total respectively.  With the second largest pastureland, the region is one of the major sheep farming areas and fine-wool producers in China.  It provides more than 40% of the country's total fine-sheep wool output and its milk production in the region ranked the fourth in China in 1999.  Besides, Xinjiang is a major agricultural base of grain, sugarbeet and fruits, of which, Yining apples, Korla pears, seedless white grapes and Hami melon are famous at home and abroad.

Xinjiang is rich in energy resources.  It has the largest reserves of oil, natural gas and coal in the country.  Its coal reserves reach 27 million tons (40% of the countryˇs total) and oil reserves amount to 30 billion tons.  Crude oil output which reached 17.4 million tons in 1999 was the third highest in the country.  The oil and gas reserves found in Tarim, Junggar and Turpan-Hami basins in the region account for one-fourth and one-third of the country's total.

Xinjiang's reserves of mineral resources are great as well.  The region's reserves of beryllium and mica are the highest in China.  Some of the regionˇs granite products such as ¨Xinjiang Red,〃 Tianshan White〃 and ¨Snowflower Black〃 are famous brands in the country.  The countryˇs largest copper mine is also found in Xinjiang.  There are 100 locations with a total of over 1 billion cubic metres of proven granite reserves.

 

Infrastructure

 

Railways The region is mainly served by the LanXin lineLanzhou-Xinjiangwhich links up with the Longhai lineLanzhou-Lianyungangand the NanJiang lineKorla- Kashi.  Construction of Qinxin lineGulmod in Qinghai and Korla in Xinjiangis under planning stage.

Highways By the end of 2000, the total length of roads and highways in the region reached 35,600 kilometres, covering over 99% of the counties, townships and villages.  Major highways include TurUDaiTurpan-Urumqi-Daihuangshan, U-Kui ExpresswayUrumqi-Kuitun, LanXin lineLanzhou-Xinjiang, QinXin lineQinghai-Xinjiangand XinTibet lineXinjiang-Tibet .

Air Transport The Urumqi Airport has flight services to 59 international and domestic destinations including Ningbo, Shenyang, Xi'an, Moscow, Saberian, Islamabad, etc.  The reconstruction of the Yili Airport in 1998 and the Karsh Airport in 1999 have improved the aviation services of Xinjiang. 

Xinjiang Airlines has signed an agreement with a Hong Kong company in March 2001 to start the first direct-chartered flight between Urumqi and Hong Kong.  According to the agreement, there will be one return flights on every Saturday from June 24 to October 6, 2001.

Telecommunications Program-controlled telephones are available in 98% of township and 52% of administrative villages in Xinjiang.  At present, there are about 1.7 million telephone users in the region.  Direct dial service to Hong Kong and other major cities in the world is available.  Mobile phone service is increasingly popular, at end-1999, there were 180,000 mobile phone users in Urumqi. 

Xinjiang built a digital microwave telecommunications trunk which links cities on both sides of the Tianshan Mountain, an fiberoptic cable system leading to neighbouring countries with a total length of 25,000 kilometres, and 10 satellite ground stations.  The region has also setup a digital data network, a conference TV system, a smart terminal and a multi-media network.  The number of data transmission users has risen to 105,000.

Wind Power More than 200 power-generating units are in operation at the wind power centre in Dabancheng.  The generating capacity of the center makes up one-third of the total installed wind power capacity in the country.

Gas Supply Under China's energy development strategy, a major gas pipeline running from the Tarim Basin to Shanghai with a total length of 4,167 kilometers will start construction in the last quarter of 2001.  The pipeline which runs through Gansu, Shaanxi, Shanxi, Henan, Anhui and Jiangsu and Ningxia Hui Autonomous Region, will be able to transmit 12 billion cubic metre of gas annually from the west to the east upon completion by end-2003.

 

Industries

 

In 2000, total added value of industrial output of the region was Rmb42.2 billion, increased by 9% over 1999.  Urumqi, Karamai, Korla and Tulufan are some of the major industrial production centres in the region.

Heavy industries like oil, petrochemicals and coal production formed a fundamental part of Xinjiangˇs industrial development, accounting for 69% of the regionˇs total industrial output in 1999.  Besides, the region has developed light industries like textiles and garments (especially wool and cashmere), leather processing, paper making, sugar refining and carpet weaving.  The Xinjiangˇs government targets to accelerate development of information, biotech, energy and environmental protection industries in the 10th Five-Year Plan period.

 

Tourism

 

Situated in the middle of the Silk Road, Xinjiang has abundant cultural and historical relics at Kashi, Gaochang, Jiaohe and Loulan.  Other famous touristic spots include Tianshan Mountain, Tianchi Lake, Bizaklik Thousand-Buddha Caves, Flaming Mountains, etc.

In 2000, about 240,000 overseas tourists and 7.6 million domestic tourists visited the region and generated total revenue of US$93 million (+10%) and Rmb6.4 billion (+14%) respectively.

 

Consumer Market

 

Retail sales of consumer goods in the whole region rose by 7.8% to Rmb37.5 billion in 2000.  In Urumqi, which is the largest consumer centre in the region, recorded Rmb10.7 billion retail sales of consumer goods in the first 11 months of 2000, an increase of 11.5% from the same period in 1999.

Major department stores and shopping centres in Xinjiang include Urumqi Tianshan Department Store, Urumqi Youhao Department Store, Xinjiang Department Store, Hongshan Shopping Arcade, Urumqi Dashizi Commercial Building, Tulufan Department Store, Hami Department Store and Xinjian Shengchan Jianshe Bingtuan Department Store.

 

Foreign Trade

 

Xinjiang's exports rose by 14.4% amounting to US$1.2 billion in 2000.  Major export items included canned food, cotton, garment, silk products, woolen yarn, etc.  In addition to the traditional export markets like Kirghizistan, Kazakhstan, Hong Kong, Japan and the US, the region has diversified into new export markets in Southeast Asia, Korea, Latin America and Africa.

Imports rose by 45.3% to US$1.4 billion in 2000.  Major import goods included aluminum and steel product, chemical fertilizer, paper and paper products, medical equipment, etc. Major import sources were Kazakhstan, Hong Kong, the US, Russia and Uzbekistan.

Xinjiang is the second largest border trade zone in China, after Heilongjiang Province.  Border trade reached US$1.3 billion in 2000 (+29%), accounting for 58.3% of the region's total trade.  There are 16 ports open for border trade with neighbouring countries.  Major export goods included foodstuff, textiles, chemical fibre cloth, garment, etc.  Major imports included raw materials, chemical fertilizer, etc. 

 

Foreign Investment

 

In 2000, the number of newly approved foreign-funded projects totalled 58 (+11.5%) with contractual and utilized foreign investment increased to US$92.1 million and US$19 million respectively.   By the end of 2000, investors from 36 countries had made a total of US$380 million investment in the region, of which Hong Kong, Macau and Taiwan accounted for 63%.  Most foreign capital was invested in oil/gas exploitation and manufacturing industries like foodstuff, textiles and pharmaceuticals.

The Urumqi Foreign Economic Relations and Trade Fair is a major annual event in Xinjiang to promote foreign trade and inward investment.  In the coming year, the region will focus on expanding its border trade, attract foreign funds in developing its petroleum and natural gas resources facilities in the Tarim, Turpan-Hami and Junggar basins as well as infrastructure facilities.  Besides, foreign investors are also encouraged to participate in agricultural, food processing, textiles, petrochemicals, mining, building materials, environmental protection and other industries using advanced technology.

To boost the development of the central and western regions in China, the State Council has granted further tax incentives to foreign-invested enterprises (FIEs) in China.  Beginning from January 2001, foreign-invested enterprises in the central and western regions would enjoy another three years of preferential tax rate at 15% on top of the existing preferential treatment (exemption of profit tax for the first two years and 50% reduction for three years thereafter).  The tax rate can be further reduced to 10% when an enterprise is proved to export more than 70% of its annual output in terms of value.  Besides, the regionˇs government also exempt the foreign investors from paying the 3% profit tax to the local government if the business has an operating period exceeds 10 years.

 

Economic Indicators of Major Cities (1999)

 

 

 

 

Population

GDP

Industrial Output

Retail Sales

Cities

('000)

(Rmb bn)

(Rmb bn)

(Rmb bn)

Urumqi       

1,589

24.9 (+7.9%)

22.0 (+8.1%)

11.1 (+8.4%)

Ili                 

3,858

18.2   (+7.0%)

7.4     (+10.7%)

5.2     (+7.0%)

Changji       

1,482

11.0   (+9.3%)

7.4   (11.1%)

2.8     (+7.3%)

Ba               

1,012

10.9   (+8.0%)

4.1*    (+16.9%)

3.0     (+5.0%)

Karamai     

269

10.2   (+7.5%)

16.9   (+4.1%)

1.2     (+6.2%)

Kashi          

3,342

6.9     (-3.2%)

1.38   (+5.6%)

1.7     (+7.6%)

Note: Figures in  (   ) represent year-on-year growth              * Added value of Industrial Output

Source: Xinjiang Statistical Yearbook

 

Major Economic & Technological Development Zones (ETDZs)

By the end of 2000, Xinjiang has 10 development zones of which 6 are state-level development zones and border cooperation zones.

1.                  Urumqi Economic and Technological Development Zone which mainly engages in chemical industry, textile, foodstuff, construction material, medicine and light industry.  An International Trade/Tourist Shopping Market was open in 1998 to attract more foreign investment.

 

2.                  Urumqi Hi-tech Development Zone which mainly engages in hi-tech and tertiary industries, medicine, machinery.  In 1999, the zone achieved Rmb702 million of industrial output and total trade US$71.8 million. 

3.                  Shihezi Economic and Technological Development Zone which mainly engages in light industry.  In 1999, there were 244 enterprises located in the zone, with its industrial output totalled Rmb571 million and its foreign trade reached US$13.6 million. 

4.                  Yining Border Economic Cooperation Zone, was approved by the State Council in June 1992 as an important base of agricultural products.

5.                  Bole City Border Economic Cooperation Zone, a state-level zone approved by the State Council in December 1992, mainly engages in export processing industry, machinery, high-grade science and technology, medicine processing and mining industry.

6.                  Tacheng City Border Economic Cooperation Zone, was approved by the State Council in December 1992. 

Other development zones in Xinjiang include :

7.                  Kuitun Economic and Technological Development Zone, located on the wasteland of the Gobi desert, is the third largest industrial production centre in Xinjiang.

 

Economic Indicators

 

 

 

 

1999

2000

Economic Indicators

Value

Growth

Value

Growth

 

 

 

 

(%, y-o-y)

 

 

(%, y-o-y)

Area (sq km)

1,650,000

--

1,660,400

-

Population (mn)

17.7

1.1

19.3

 

 

Gross Domestic Product (RMB bn)

116.9

7.1*

135.6

8.2*

Per Capita GDP (RMB)

6,653

3.4

7,433

 

 

Disposable Income Per Capita

 

 

 

 

 

 

 

 

  - urban (RMB)

5,320

6.4

5,870

8.1

  - rural (RMB)

1,473

-7.9

1,620

8.0

Fixed-assets Investment (RMB bn)

44.4

2.8

52.0

17.1

Added Value Output

 

 

 

 

 

 

 

 

  - primary industry (RMB bn)

27.2

-6.1

28.8

4.8

  - secondary industry (RMB bn)

46.1

5.3

58.7

9.0

  - tertiary industry (RMB bn)

43.8

13.1

49.0

10.4

Retail Sales (RMB bn)

34.7

3.1

37.5

7.8

Inflation (Consumer Price Index,%)

-2.6

 

 

-0.6

 

 

Exports (US$ bn)

1.0

53.2

1.2

14.4

  - by FIEs (US$ bn)

0.1

13.4

0.1

-5.4

Imports (US$ bn)

1.0

-4.4

1.4

45.3

  - by FIEs (US$ bn)

0.04

46.3

0.02

-45.5

Foreign Direct Investment

 

 

 

 

 

 

 

 

  - number of projects

52

13.0

58

11.5

  - contracted amount (US$ bn)

0.06

-55.5

0.09

49.8

  - utilized amount (US$ bn)

0.02

10.9

0.02

 

 

Notes:  * In Renminbi real terms                       

Sources: Xinjiang Statistical Yearbook and State Statistical Bureau, 2000 statistics are preliminary figures based on press reports.


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