China approves Xinjiang Pilot Free Trade Zone

China recently approved setting up the China (Xinjiang) Pilot Free Trade Zone. A State Council circular issued on October 31 called for efforts to build the zone into a demonstration model of high-quality development for central and western regions.

The zone will serve the construction of core areas of the Belt and Road Initiative, support the golden channel between Asia and Europe, lead the opening-up of the western regions, and contribute to the China-Central Asia shared community, the circular said.

The zone will witness significant progress in business environment, convenient investment and trade, and industrial clusters with shared resources after three to five years, a state-controlled media outlet reported.

Comprising parts of Urumqi, Kashgar and Khorgos, the zone covers 179.66 sq km and will focus on emerging, labour-intensive and modern service industries.

The Xinjiang Uyghur autonomous region and the Xinjiang Production and Construction Corps will delegate dual economic and social management authorities to the zone.

Apart from deepening reforms in investment, measures will be taken to facilitate investment and enhance the level of overseas investment and cooperation, the circular said.

The zone will promote upgradation of the manufacturing industry and innovative growth of the digital economy.

With strengthened financial services, cross-border use of RMB will be expanded in the zone, with a risk control and prevention system.

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