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Beijing unveils incentives for Xinjiang SEZs

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Shi Jiangtao

Beijing has revealed details of its plan to fast-track special economic zones in two border cities in Xinjiang under its campaign of economic development to ease ethnic tensions in the far-western region.

The move to set up the zones in Khorgos, in Yining , and in Kashgar was announced last year as Beijing revised its policies on Xinjiang in the wake of increasingly violent unrest, especially deadly clashes in the regional capital, Urumqi, in 2009, between minority Uygurs and Han that left almost 200 people dead.

In a State Council document released yesterday by Xinhua, the government pledged to introduce preferential policies for businesses in the zones, including technological and personnel support, tax cuts and other incentives. It also vowed to open up the zones to the country's central and south Asian neighbours.

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Logistics, electronics, textiles, construction materials, metallurgy and renewable energy would be key industries in a 50 square kilometre development zone in Kashgar.

Khorgos, where a natural gas pipeline from Turkmenistan, a major infrastructure project, enters China, would focus on chemicals, farm products and pharmaceuticals. The 73 square kilometre zone will also become an import point for cars.

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'Infrastructure construction will be basically completed for the zones by 2015,' the plan said. 'By 2020, they would see a great leap in competitiveness in these industries and overall economic strength.'

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