Province Introduction of China: Xinjiang

Published: 01 Apr 2009 19:38:45 PST

Key Information 
 

















































  
 
Introduction
Xinjiang, the largest autonomous region of China, is located in the furthermost northwestern part of the country. It borders the Gansu and Qinghai provinces to the southeast, and the Tibet Autonomous Region to the south. The region also shares a 5,000 km border with eight different countries.   
   
Home to 47 of China’s 56 ethnic groups, a diverse range of religions co-exist within Xinjiang. Lamaism (Tibetan Buddhism), Islam, Buddhism, Taoism, Christianity, Catholicism, Eastern Orthodoxy and Shamanism all thrive side by side in the country’s foremost multicultural melting pot.   

Economic Overview
Ever since the initiation of China’s opening-up and reform drive in 1979, the face of Xinjiang’s economy has been dramatically changed. In 2006, the region’s GDP reached RMB 301.9 billion – an 11% increment from its GDP the previous year. Within this figure, the value-added output of agriculture was RMB 53.3 billion (5.7% higher than in 2005), the value-added output of industry was RMB 143.8 billion (13.5% higher than in 2005) and the value-added output of services was RMB 104.8 billion (8.6% higher than 2005).  
 
Industry leads the province’s economy with a contribution of 47.60% to the GDP. The service sector also makes a substantial contribution at 34.70%. Agriculture contributes the remaining 17.70%.   
 

 
In 2006, the total fixed asset investment in the region amounted to RMB 156.7 billion, which marked a 17.6% increase from the previous year. Table 12.11.1 shows the fixed asset investment breakdown by industry. Mining and quarrying, and extraction of petroleum and natural gas have the highest fixed asset investment – over RMB 30 billion. 
  







 
Retail sales of consumer goods grew by 14.1% in 2006, amounting to RMB 72.7 billion. In addition, the annual per capita disposable income of urban households amounted to RMB 9120, which was 14.1% higher than in 2005. Table 12.11.2 shows the composition of per capita urban household expenditure. More than 35.5% of expenditure is spent on food.   
 










 
Urumqi, the capital city of Xinjiang, plays home to the region’s largest consumer center. Retail sales of consumer goods in the area accounted for 36% of Xinjiang’s total retail sales in 2006. Major department stores and shopping centers such as the Urumqi Tianshan Department Store, Urumqi Pacific Department Store and Urumqi Youhao Department Store are located here. The French international hypermarket chain, Carrefour, has also established outlets and its Northwest headquarters in the city.














Agriculture
Fruits such as the Yili apple, Korla pear, seedless white grape and Hami melon are famous both locally and abroad. The region is famed for its unique natural environment and resources that nurture the growth of specific fruits which cannot be easily farmed elsewhere. In 2006, the total output of fruit was 5.8 million tons (13.4% higher than in 2005).
 
Xinjiang is also China’s largest and fastest-growing base of cotton, hop and lavender. In 2006, the total output of cotton reached 2.2 million tons (an increase of 11.4% from 2005) while the total output of sugar beet was 5.5 million tons (up 32.6% from 2005).
 
Additionally, with the second largest pastureland in the country, the region is one of China’s major sheep farming areas and fine-wool production bases. In 2006, sheep yielded 89,600 tons of wool (a slight drop of 0.2% from 2005) and milk production reached 1.8 million tons (up 18.1% from 2005). 
 
Industry
Due to Xinjiang’s wealth of natural resources, its relatively well-developed industrial infrastructure focuses on a wide variety of industries such as raw and refined oil, iron and steel, metallurgy, machinery, chemicals and power generation. The region’s natural resources include coal, oil, iron, manganese, chromium, lead, molybdenum, zinc, beryllium, lithium, niobium, tantalum, cesium, white mica, asbestos and crystal.
  











Oil and petrochemicals, food and beverage, textiles, metallurgy, building materials and electric power, in particular, are the pillar industries of Xinjiang. In 2006, the region’s total value-added industrial output above designated size amounted to RMB 114.5 billion (15.0% higher than 2005). Table 12.11.3 shows the pillar industries’ total industrial output, weight and number of enterprises. 
  
Services
Telecommunications services in Xinjiang have enjoyed a robust growth. In 2006, the revenue generated by the total volume of telecommunications and posts amounted to RMB 22.8 billion – a dramatic increase of 32.4% from the previous year. Within this figure, the revenue from telecommunications alone reached RMB 21.9 billion (33.1% higher than 2005) while postal services stood at RMB 0.9 billion (16.8% higher than 2005).
   
Xinjiang has an abundance of valuable tourism resources and the region is notably famous for the ancient Silk Road. It is also home to 256 ancient cultural sites, tombs, ruins, Buddhist caves, stone sculptures and numerous contemporary monuments. Approximately 154 of the sites are under state protection. Popular scenic and historical attractions include Heavenly Lake, Bosteng Lake, Gaochang Ancient City and the ruins of Loulan. Table 12.11.4 shows the key statistics for both domestic and overseas tourism. As can be seen, the tourism industry is growing rapidly, with revenue growths of 14.2% and 28.0% for domestic and overseas tourism respectively.
   
  






 
Education
The region’s higher education sector saw moderate developments in 2006. 42,000 students graduated from institutes of higher education that year (up 19.9% from 2005). Xinjiang has 13 universities, the oldest of which is Xinjiang University. Located in the city of Urumqi, the university was founded in 1924. 
 
Foreign Trade and Foreign Investment
In 2006, the total foreign trade revenue reached US$9.1 billion (up 14.6% from 2005). Border trade revenue reached US$6.5 billion in 2006, accounting for 71.4% of the region’s total trade. Major imports in the region include rolled steel, medical equipment, crude oil, oil products, fertilizers, etc.
 
Due to its sparse population and underdeveloped transport network, FDI in Xinjiang remains relatively low. However, in recent years, growth of FDI has increased dramatically. In 2006, actual utilized FDI hit US$100 million (up 120% from the previous year). The top 3 sectors that utilized the most foreign capital were: manufacturing, mining and quarrying, and the production and distribution of electricity, gas and water.  
 
Figure 12.11.2 shows the major sources of FDI. Denmark has injected the most amount of FDI into Xinjiang (22.10%). Other key sources are Australia, Hong Kong and Singapore.   
 














 
Major Development Zones
The Urumqi Economic and Development Zone was approved by the state council in 1994. With an area spanning 36.3 sq km, the development zone focuses on machinery manufacturing, new building materials, molds, furniture, food and beverages, pharmaceuticals, modern logistics, and export processing. In 2006, the total industrial output reached RMB 6.9 billion - an increase of 37.3% from the previous year.Another state-level development zone in Xinjiang is the Shihezi Economic and Technological Development Zone that develops textiles, green food and chemicals. In 2006, its industrial value-added achieved RMB 1.8 billion, accounting for 73.5% of Shihezi City’s total industrial value-added. 
 
Major Areas in Xinjiang
There are 14 areas in Xinjiang province, made up of cities, prefectures, counties and administrative regions. Table 12.11.5 shows each area’s GDP, land area and population.   
 



















As can be seen from the table, Urumqi city, the capital of Xinjiang is the most economically advanced area in the province, with a GDP of RMB 65.4 billion. The following section presents a brief overview of Urumqi.

Urumqi 
 




















Introduction
Urumqi is the capital of Xinjiang and is located in the middle of the region - north of the Tianshan mountain range and south of the Zhunger Basins. The northern route of the historic Silk Road passes through Urumqi.
 
It is a multi-national city with 43 ethnic groups such as the Han, the Uyghur, the Kazakhs, the Hui, the Mongols, etc.
 
Investment Climate
Suburban agriculture is a prominent characteristic of Urumqi. The city has focused its efforts on farming vegetables, fruit, meat, aquatic products, milk, eggs and poultry. In 2006, annual grain output reached 73,300 tons (33% higher than 2005) while vegetable yielded 852,400 tons (8.1% higher than 2005).  
 
State-owned industrial enterprises in Urumqi also play a crucial role in its economic development. As a result, in 2006, its industrial output value above designated size increased by 16.0% to RMB 18.9 billion. Within this figure, the output of coal reached 11.4 million tons (up 19.3% from 2005) and steel products totalled 3.8 million tons (26.9% higher than 2005).
 
Investment in real estate grew rapidly in 2006. During that year, the city’s real estate investments amounted to RMB 5.3 billion (up 51.6% from the previous year). In particular, annual commercial housing sales hit RMB 8.5 billion – a sharp increase of 68.2% from 2005.
 
Foreign Trade and Foreign Investment
In 2006, Urumqi’s total foreign trade revenue reached US$ 4.5 billion (15% higher than 2005). Main exports included apparel, fashion accessories, footwear, machinery, electronic products, furniture and parts. Its main imports consisted of mechanical and electrical products, cotton, steel and refined oil amongst others.
 
Important Travel information
From Urumqi Airport to:
- Beijing
- Shanghai
- Guangzhou
- Moscow  3hours 20 mins
4 hours 15 mins
5hours 20 mins
5 hours 30 mins