Yang Gang Deputy Secretary of CPC Xinjiang Uygur Autonomous Region Committee and Vice Governor of Xinjiang Uygur Autonomous Region

Respected Guests and Friends,
Ladies and Gentlemen:

Good morning.

In the golden season of September, it is the first time that the Forum on Urumqi Trade Fair is held jointly by the Ministry of Commerce of PRC and Government of Xinjiang Uygur Autonomous Region. The Forum serves to promote the understanding of Xinjiang by the outside world, and it is also a platform whereby Xinjiang goes global. I would like to take this opportunity to talk about the economic cooperation of China Xinjiang with its surrounding countries. The subject of my speech is Promote Regional Economic Cooperation to Achieve the Mutual-Benefit and All-win Result.

Xinjiang is located in the hinterland of the Eurasian continent and serves as an important gate for China to open up to the outside world. It was an important section of ancient Silk Road and is now a hub for the second Eurasia railway. It has a border line of 5600 km, neighboring eight countries such as Mongolia, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, Afghanistan, Afghanistan and India. So, Xinjiang is a province of China holding important strategic position, with longest borderline and most opened ports.

I. Xinjiang enjoys advantage for regional economic cooperation:
Thanks to development efforts in the past 50-odd years, an economic structure has been built in Xinjiang, with agriculture as the basis, industry as the mainstay, and a regional economic situation has been shaped, relying on the economic belt along northern side of Tianshan Mountains, with railways and highways as its backbones and with regional economic central cities as supporters. Xinjiang has the following advantages:

The Chinese government attaches great importance to the development of Xinjiang in terms of development environment. Xinjiang is the top priority in the great program of western development. The central government of China adopted a number of policies in favor of the development of Xinjiang, greatly improving infrastructure in Xinjiang and laying a solid foundation for rapid and efficient development of local economy and society. Good opportunities for development are presented before us by the following facts: Shanghai Cooperation Organization or SCO accelerated economic cooperation process among its member states, new progress was achieved for the Sino-Kazakhstan Horgos International Border Cooperation Center, Central Asian countries represented by Kazakhstan are enjoying rapider economic growth, mutual confidence was strengthened between China and Russia, and Sino-Indian relations improved greatly.

Xinjiang borders eight countries. Trade with surrounding countries accounts for more than 80% of total foreign trade volume of Xinjiang, and economic and technological cooperation with surrounding countries has made up more than 80% of its total volume of economic and technological cooperation. Central Asian investments in China are concentrated in Xinjiang. It is the largest province in terms of border trade volume. In 2006, its border trade volume reached 6.48 billion USD, that is 71.2% of the total. We have 27 opened ports under Category A and B, three national development zones and 10 provincial development zones, 3 border economic cooperation zones, 1 export-processing zone and 1 international border cooperation center. A network of transport and communication has been built, stretching in all directions, composed of international highways, railways, civil air routes and telecommunication facilities. An all-directional opening up situation was formed. And our endeavor to build an international business center produced substantial results.

Xinjiang boasts rich natural resources, with large reserves of minerals complete in variety and bright in prospect for exploitation. So far, 138 minerals have been found, with 9 ones ranking the top in China in terms of reserves and 32 ones ranking the first in northwestern China. Some resources are abundant in reserves such as oil, gas, coal, gold, chrome, copper, nickel, rare metals, salt-type minerals and non-metal building materials. Xinjiang has an oil reserve of 20.86 billion tons, accounting for 30% of total oil reserve in China. It has a natural gas reserve of 10.3 trillion cubic meters, 34% of total reserve of China. There is a huge potential for exploitation of oil and gas in Xinjiang. It is estimated that Xinjiang has a coal reserve of 2.19 trillion tons, making up 40% of China’s total. Central Asia and Russia, neighbors of Xinjiang, are two areas rich in natural resources. Both sides enjoy bright prospect for their cooperation in resource exploitation, processing and trade.
Xinjiang is the only meeting place of the world’s four civilizations (Chinese civilization, Indian civilization, Persian civilization and Greek-Roman civilization). It is a multi-ethnic, multi-lingual and multi-cultural autonomous region where the culture has both regional and ethnic characteristics. Success has been achieved in application to UNESCO for China Xinjiang Uygur Muqam as human verbal and non-material heritage. Here you can see many historical sites and cultural relics. 47 ethnic groups live in Xinjiang, 13 ones of them are native and have bigger populations. At the end of 2006, Xinjiang has a total population of 20.5 million. People of different ethnic groups live in harmony. Xinjiang shares with its surrounding countries ethnic groups, languages and custom. This constitutes a favorable condition for Xinjiang to be a “bridge” between other parts of China and Central Asian countries in economic cooperation.
II. Promote Regional Economic Cooperation to Reach A Mutual-Benefit and All-win Situation
1. Starting with opening up westward, we shall unswervingly pursue the Strategy of All-directional Opening Up. Xinjiang is situated in northwestern China, far from market of inland China. With small market room, local products have be marketed outside Xinjiang. Consumption demand can play a limited role in boosting economic growth in Xinjiang. Local economic development is restricted by factors such as capital, human resources, technology and quality of workforce. However, we have our own favorable conditions. Xinjiang is a shortcut of China to surrounding countries and enjoys a geographic position for opening up westward, an advantage beyond the parallel of other provinces. Central Asian countries and Russia have large markets and rich energy and mineral resources. China and Central Asian countries and Russia complement one another in the field of economy. This is a good condition for economic cooperation among China Xinjiang, Central Asian countries and Russia. Therefore, it is not a makeshift to speed up industrialization, industrialized management of agriculture and urbanization process, and open up further to the outside world. Rather, it is a strategy which we must adhere to for a long time.

2. With government as the leading, we will make every effort to improve investment environment. We will work hard to implement Outline on Multilateral Economic and Trade Cooperation among SCO Members, give full play to liaison and consultation mechanisms and working groups concerning economic and trade cooperation among China Xinjiang, Kazakhstan, Kyrgyzstan and Russia, address major issues in economic cooperation and facilitate trade and investment activities. By making use of our geographic position and resources, fostering favorable investment environment, we will open further market for resource and capital to attract capital, technology, and talents from home and abroad. We encourage and support strong enterprises at home and abroad to cooperate with local enterprises, make strong pillar industries with local characteristics. We will build export-oriented processing bases and modern logistics system meeting needs of international business center.

3. Taking implementation of policy as a key link, we will vigorously push forward the development of cooperation center. A good job will be done to implement preferential polities and funds granted for the cooperation center by central government of China. We will make planning, put coordinating efforts and make advertisement to publicize the center. Efforts will be concentrated on introducing high and new technology, advanced equipment and brand enterprises from home and abroad. Vigorous support will be given to enterprises to produce commodities for export to surrounding countries. And they are encouraged to import resources from surrounding countries and to process imported resources for domestic supply or for reexport. We will work with our Kazakhstan counterparts to press forward the development of infrastructure to lay a sound foundation for Sino-Kazakhstan Free Trade Zone and for the SCO economic integration. By doing so, a major breakthrough will be achieved in China’s opening up to the outside world.

4. Relying on key projects, we will work hard to deepen economic and trade cooperation. We will actively participate in cooperation in fields such as energy and transportation. Play will be exercised to the model role of Sino-Kazakhstan Oil Pipeline. We will give push to the energy cooperation of our country with Turkmenistan. Regional energy network and market system will be built. Further play will be given to the role of the second Eurasia Railway, and further communication and coordination will be conducted among the countries along the Railway. We will hold consultations with relevant countries concerning the issues with the Railway, and formulate related policies to address these issues so as to bring about smooth transportation through the Railway. Construction of transportation infrastructure will be intensified. Work will be done to exploit the potential of existing roads, railways and civil air routes. Work on network of telecommunication and information will be accelerated to set up SCO information highway system.
5. By cooperating with players at home and abroad, we will endeavor to establish banking service system. Full play will be given to the role of SCO Inter-bank Complex. More flexible approaches will be adopted to explore and address issues concerning financial service in cooperation. Capital will be introduced from international financial institutions such as Asian Development Bank and European Bank so that financing sources for major projects be widened. We will work to implement some major projects that attracted attention from various sides such as China-Kyrgyzstan-Uzbekistan Railway. We will carry out the strategy of brand to improve the core competitiveness of enterprises in Xinjiang. Vigorous efforts will be made to research and develop exports with competitive edge, and to support the export of goods of our own brands. Priority will be given to export of new and hi-tech products with independent intellectual right and brand so as to improve the added value and technology.

6. Working together to “facing to west”. We will make full use of the geographic position of Xinjiang, struggle to develop export-oriented economy and propel the industrialization process in Xinjiang. Converging point will be found between the industrialization process in Xinjiang and the market at home and abroad. Guild and support will be given to local strong enterprises to open international market. Foreign investments will be directed to industrialization projects to shape new export growth points. We speed up the implementation of the strategy of “going global” to help along the industrialized management of agriculture and industrialization in Xinjiang. Foreign cooperation will be strengthened in exploration, exploration and processing of energy sources and mineral resources. By implementing the strategy of “going global”, we will push forward the industrialization process in Xinjiang. We will study and formulate measures for agricultural cooperation with Central Asian countries in an effort to promote agricultural cooperation with foreign countries, and effectively combine state foreign aid projects, outbound investment, agricultural cooperation and commodity trade. We will support enterprises to export equipment and technology by giving play to the advantages in manufacture of agricultural machinery, water-efficient equipment, textile machinery, leather processing machines, food processing equipment, building materials, paper-making, plastics and daily goods.

During the Eleventh 5-year Plan period, we will take economic development as the central task and actively promote industrialization and opening up. Also, we will implement the strategy of turning rich resources into economic strength and the strategy of sustainable development. We will make overall arrangement for opening up inward and outward, adhere to guidelines for economic development, give full play to our advantages in geographic position, expand fields of cooperation, promote regional economic cooperation to achieve a mutual benefit and all-win result by making full use of markets and resources at home and abroad. Therefore, Xinjiang will become the gate and hub of China for opening up to countries west of China.