Retracing the Ancient Silk Road: Urumqi: Belt and Road Initiative opens up Central Asian market for companies

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Five years into the Belt and Road Initiative, Urumqi, the capital of China's Xinjiang Uygur Autonomous Region has become a hub for companies across the world to explore the vast Central Asian market. MARK FONTES has the story.

A car assembly plant in one of the world's most remote cities. Far away from its suppliers, this SAIC Volkswagen plant opened for business in Urumqi 5 years ago, first as a response to the Chinese government's call to develop the nation's far west. But soon, the automaker also saw the region's potential.

FU XUEJUN MANAGER OF SAIC VOLKSWAGEN (XINJIANG) AUTOMOTIVE "We built this factory to help develop China's vast west. But, we also believe the economy in this part of the country will boom. So we seized the bridgehead for the future."

Opportunity came sooner than expected. Coincidentally, just a few days after the factory was put into operation, the Belt and Road Initiative was launched by China, providing the company with smoother access to the Central Asian market.

FU XUEJUN MANAGER OF SAIC VOLKSWAGEN (XINJIANG) AUTOMOTIVE "Urumqi is closer to Central Asian countries than to other major Chinese cities. It saves logistics cost if we export our cars to Central Asia. After we get the green light from China and Germany, we'll be ready to export."

SAIC Volkswagen is not the only foreign company coming across the Belt and Road Initiative. The initiative requires massive infrastructure projects. Swiss company ABB is an active participant.

JIANG HAIBO SENIOR VICE PRESIDENT OF ABB CHINA "I think it's quite obvious that in the past 5 years, I really see a lot of business emerging in this area. A lot of business comes from infrastructure, energy and industry. In ABB it has already become one of our strategic focus. We put a lot of resources into this."

Corporate groups are using the Belt and Road Initiative as a springboard into Central Asia. But for locals in Urumqi, it means better jobs closer to home.

AKRAM MACHMUT EQUIPMENT MAINTENANCE ENGINEER SAIC VOLKSWAGEN (XINJIANG) AUTOMOTIVE "I studied mechanical engineering. The job here fits my expertise. It's also close to home. I can take care of my family because I don't have to leave for big cities to work. I have two kids. I've already bought a house and a car here in Urumqi."

Numerous developing countries are involved in the Belt and Road Initiative. It is expected that more opportunities in untapped markets will surface with the initiative in place. MARK FONTES, CGTN.