Xinjiang Pilot FTZ: Opportunities for exchanges with Central Asia

Editor's note: Liu Chunsheng, a special commentator for CGTN, is an associate professor at the Beijing-based Central University of Finance and Economics. The article reflects the author's opinions and not necessarily the views of CGTN.

On November 1, 2023, the Xinjiang Pilot Free Trade Zone (FTZ) was officially launched in Urumqi, China's Xinjiang Uygur Autonomous Region, marking a significant milestone for China's inaugural FTZ in the northwestern frontier. This development embodies a major stride in China's ongoing efforts toward high-level opening-up and high-quality development. Strategically proposed by the Central Committee of the Communist Party of China and the State Council, the zone is envisioned to stimulate regional economic growth through the liberalization and facilitation of trade and investment.

Situated at the core of the Eurasian Continental Bridge and rich in resources, the Xinjiang FTZ is geared toward enhancing the region's economic energy and augmenting its international competitiveness. With Urumqi as its nucleus, the zone aims to attract foreign investors from Central Asia and foster a dynamic regional economic circle, exerting its influence on neighboring countries and regions.

The establishment of the Xinjiang Pilot FTZ opens unprecedented opportunities for regional development, significantly contributing to the creation of a China – Central Asia community with a shared future. The zone's favorable policies are expected to intensify economic and trade exchanges with Central Asian countries, particularly in sectors like energy resource development and agricultural product processing and sales, which promise substantial cooperation potential.

Beyond opening its gates to the world, the Xinjiang FTZ is dedicated to high-quality development. By leveraging local resources, the zone aims to develop key industries such as modern agriculture, high-end equipment manufacturing and information technology. This endeavor focuses on driving industrial transformation and upgrading through increased investments in research and development and collaborative efforts to address core technological challenges. The zone seeks to attract top-tier talent to engage in innovation and entrepreneurial activities, thus leading economic development through technological advancement.

Moreover, the zone is streamlining business procedures to attract and facilitate enterprise activities by improving governmental service efficiency, deepening financial reforms and reinforcing intellectual property rights, aiming to establish a favorable environment for both domestic and foreign businesses.

The zone also upholds principles of green development by adhering to strict environmental protection standards and promoting initiatives that focus on energy conservation and emission reduction, achieving a harmonious balance between economic growth and ecological preservation.

Cultural exchanges are anticipated to prosper through organized cultural festivals and educational exchange programs, which will enhance mutual understanding and trust between the regions. Meanwhile, infrastructure connectivity is set to accelerate with the development of cross-border railway and highway networks, alongside improved aviation routes, enhancing the region's collective response to natural disasters.

The strategic importance of the zone lies not only in its economic goals but also in its role as a cultural and geopolitical bridge. By fostering mutual understanding and cooperation through trade, culture and infrastructure, the zone is positioning itself as a linchpin in China's broader regional and global ambitions. This ambitious initiative embodies a vision of prosperity that transcends economic metrics, aiming for a future where economic vitality coexists with mutual respect and shared growth.

There are high hopes for the progressive advancement and continued success of the Xinjiang FTZ. With the nation's collective efforts, the zone is expected to significantly contribute to the development of socialism with Chinese characteristics in the new era. It is hoped that the zone will stand as a symbol of high-level opening-up and high-quality development, significantly aiding in the building of a closer China – Central Asia community with a shared future.

The Xinjiang FTZ represents a forward-thinking strategic effort by China to integrate into the global economy while simultaneously boosting regional development. By focusing on high-quality, sustainable growth and enhanced cooperation with Central Asian countries, the zone is not only expected to bring new economic opportunities to Xinjiang but also to play a crucial role in the regional landscape.

As it sets sail, the pilot FTZ carries with it the hopes of not just economic prosperity, but also of fostering a future where countries walk together on the path to sustainable and inclusive growth. It stands as a testament to the broader vision of China's economic policy and regional diplomacy, setting a new standard for international cooperation and development.

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