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WORLD INVESTORS MAGAINE JULY 2010 12 COVER STORY Kashgar region includes 1 county-level city, 10 counties and 1 autonomous county "Here comes the spring of Kashgar" said people that once lived and worked together in Kashgar with great excitement. They lost no time in telling each other the news. T he central conference for the work in Xinjiang was held in Beijing. The government decided to concentrate the power of the whole country to build Xinjiang. After having been spread, the news that the government decided to implement the resources tax reform firstly in Xinjiang became a hot topic. Meanwhile, there are also news released indicating that Kashgar will become a special zone. Although the specific name and policy have not been confirmed, people have realized that Kashgar is about to face a historic opportunity for development. "Here comes the spring of Kashgar" said the people that once lived and worked together in Kashgar with great excitement. They lost no time in telling each other the news. Kashgar – more special than the “special zone” Kashgar, located in the western border of China, has become the favorite of the media and the focus of the country after the central conference for the work in Xinjiang. It was reported on May 19 that the 3-day-long central conference for the work in Xinjiang concluded in Beijing. The government decided to concentrate the power of the whole country to build Xinjian and implement the resources tax reform firstly in Xinjiang. Per capita GDP of the borough will reach the national average in 5 years. There is also news showing that Kashgar is planning to become a special zone. Recently, Wang Yongzhi, the Deputy Commissioner of Administrative Office in Kashgar confirmed to the media that Kashgar is seeking to become a "special economic development zone". But a lot of “Here comes the spring of Kashgar”?! By Staff Reporter Zhulangerile

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Kashgar region includes 1 county-level city, 10 counties and 1 autonomous county

"Here comes the spring of Kashgar" said people that once lived and worked together in Kashgar with great excitement. They lost no time in telling each other the news.

The central conference for the work in Xinjiang was held in Beijing. The government decided to

concentrate the power of the whole country to build Xinjiang. After having been spread, the news that the government decided to implement the resources tax reform firstly in Xinjiang became a hot topic. Meanwhile, there are also news released indicating that Kashgar will become a special zone. Although the specific name and policy have not been confirmed, people have realized that Kashgar is about to face a historic opportunity for development. "Here comes the spring of Kashgar" said the people that once lived and worked together in Kashgar with great excitement. They lost no time in telling each other the news.

Kashgar – more special than the “special zone”Kashgar, located in the western border of China, has become the favorite of the media and the focus of the country after the central conference for the work in Xinjiang. It was reported on May 19 that the 3-day-long central conference for the work in Xinjiang concluded in Beijing. The government decided to concentrate the power of the whole country to build Xinjian and implement the resources tax reform firstly in Xinjiang. Per capita GDP of the borough will reach the national average in 5 years. There is also news showing that Kashgar is planning to become a special zone.Recently, Wang Yongzhi, the Deputy Commissioner of Administrative Office in Kashgar confirmed to the media that Kashgar is seeking to become a "special economic development zone". But a lot of

“Here comes the spring of Kashgar”?!

By Staff Reporter Zhulangerile

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final decisions have not been made yet. According to the report of "South China City Newspaper", Wang Yongzhi said, the strategic framework and the concept of "special economic development zone" have been initially made. The current uncertainty is mainly in how many preferential policies could be given to Kashgar. Next move is to make further plan, which will involve a series of supporting policies, including the adjustment of institutional setup of the divisions. "Since it is a special economic development zone, what level of the authority should be given to it? Should it be provincial or prefectural? Those are the following moves." Before the approval, all variables still exist. Both the specific name for the special zone and the special preferential policies to be given still need to be further clarified.It is known that, at press time, the unified statement of the administrative office to the media is: a “special economic development zone” will be established in Kashgar and will be given special policies.Xia Yu, d i rector of the Bei j ing Off ice of the Administrative Office of Xinjiang Kashgar and deputy director of China Merchants of Xinjiang Kashgar said in an interview with our correspondents that the name of the special zone in Kashgar is now basically called Kashgar "Special Economic Development Zone". The country is going to make full effort to create a western star city opening to Central Asia, Southern Asia, Western Asia and European countries.It should noted that the Kashgar "Special Economic Development Zone" is an opening land port with socialistic nature, opening up, with Chinese characteristics, established in ethnic minority areas and opening up along the border. The Kashgar region includes the Kashgar City and 11 counties with a vast territory. The "Special Economic Development Zone" does not mean the entire region of Kashgar area but be established in the Kashgar city, located in north-western of Kashgar city. The initial ideal planning area is 8.5 square kilometers. According to the latest news, the initial planning area may be expanded to 20 square kilometers. Short-term goal is to be about 50 square kilometers and the further goal is expected to reach 120 square kilometers. The zone will not occupy land of the farmers. All land to be used will be land for non-agricultural use such as Gobi. The final scale and mode of the zone is still in research.Xia Yu said, Kashgar is going to build a "Industry Gathering Area", including not only Kashgar "Special Economic Development Zone", but also the development

and construction of "state-level economic development zones" and "provincial economic development zones" that meets the requirements by several years’ development. The "Special Economic Development Zone" will enjoy the special policies given to the "Special Economic Development Zone" while enjoying the general policies given to the "Industry Gathering Area". Kashgar will be given more special policies than the "special zone" to strengthen the development of the western bridgehead Kashgar. Kashgar will be considered as the key areas for development and will be given priority to development with radial function to pull the development of Southern Region of China.

The way to “seek changes” of Kashgar“Seeking changes” in Kashgar has been planned for a long time and has always been working on. The reporter knew from the Beijing Office of the Administrative Office of Xinjiang Kashgar that the idea to develop Kashgar on national strategic altitude and to give special policies to Kashgar has been informed by the representive of Kashgar region in early NPC meetings.It is said that "Shenzhen in the south, Kashgar in the west", which has been the dream of special zone immersed by people in Kashgar for years. According to the report of "Qi Lu Evening News", the reference "Western Shenzhen" could be dated back to 1987, when a special report of Xinhua News Agency asserted that "Kashgar will become a western Shenzhen Kashi and will change the entire pattern of Western economic trade."The dream of "Western Shenzhen" in Kashgar got closer to reality in this year.It is understood that in February this year, Zhou Yongkang, standing committee of the CPC Central Committee Political Bureau went to Kashgar for research and said that the government is going to build Kashgar to a glamorous western pearl city that envied by the countries around and other countries and proposed to establish a "special economic zone" in Kashgar in the meeting with five principal leaders of 5 southern regions and states. According to the report of "South City Newspaper", during the two meeting this year, YAkebaier.Wupuer, commissioner of Administrative Office in Kashgar and representative of the National People's Congress suggested that the State to approve the establishment of special economic zones in Kashgar and make

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when a special report of Xinhua News Agency asserted that "Kashgar will become a western Shenzhen Kashi and will change the entire pattern of Western economic trade."

Kashgar has always been a gathering place for international business, foreign merchants and cultural exchanges between the East and the West

when a special

it enjoy special policies in the industry, taxation, banking, land, foreign trade and other fi elds to make Kashgar a exporting goods processing base, a goods transit distribution center, an international channel for importing energy and scarce mineral resources and the new Eurasian continental bridge for the development of energy resources and the international market.In addition, the report also mentioned that on April 10th this year, the "on the Progress of Work on Development of Western Region in 2009 and the Arrangement in 2010" approved by the second meeting of the State Council Leading Group for Western Region Development was forwarded to the provinces, autonomous regions, municipalities, Xinjiang Production and Construction Corps and the member units of the State Council Leading Group for Western Region Development. It is said that, "we should keep a good work in the implementation of state policies to support ethnic minorities and ethnic areas, planning of key economic zone and related guidance

opinions. We should also organize the preparation of key economic region development planning and start the early research on the development of contiguous areas with special difficulties. We should fully utilize the advantages of border edges to promote economic trade and cultural exchanges with neighboring countries. We should actively promote the construction of open test area in Dongxing Guangxi, Ruili Yunnan, Kashgar Xinjiang and Manchuria Inner Mongolia and prepare the planning of development and opening of the western region along the border." Relevant information suggested that, the national conference for counterpart support to Xinjiang ended at the end of March in Beijing sent the new signal that the center of the party decided to speed up the development of Xinjiang by a new round of aid plan and decided that the 19 provinces and cities, including Beijing, Tianjin, Shanghai, Guangdong, Liaoning, Shenzhen, etc. to bear the responsibility to support Xinjiang. According to the implementation of the planning in the national conference for counterpart support to Xinjiang and the actual situation in Xinjiang, Shanghai, Guangdong, Shandong and Shenzhen will be responsible to support Kashgar, which makes Kashgar a region with most support in Xinjiang.According to the report, the CPC Central Committee and the State Council held a work conference for Xinjiang from May 17th to 19th in Beijing. It was decided that the government will concentrate the power of the whole country to build Xinjian and implement the resources tax reform fi rstly in Xinjiang. Per capita GDP of the borough will reach the national average in 5 years and absolute poverty will be eliminated in 2020. The news about the establishment of special zone in Kashgar also began to emerge, some of which are understood that the establishment of "special economic zone" in Kashgar had been approved.The reporter learned that the name and related policies is still to be further defined. The establishment of "special economic development zone" in Kashgar was based on adequate research and hearing to the advice and recommendations of Xinjiang, especially of the local party committee and government. Over 20 ministries, in accordance with the spirit of the center of the party established relevant policies. "As for the content of the policy, it is not the right time to disclose right now" said the offi cer who took part in the work on establishment of "special economic zone" in Kashgar. The officer

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Better than before, the supporting work to Kashgar by other provinces began in 1997. Liu Xuejie, consultant of the government of Kashgar city concluded that it is “signifi cant” that the original supporting with single project and limited fi nancial assistance had changed now to the new supporting in full fi elds, with generous support and strategic intention.

explained that the relevant policies should be considered according to the offi cial documents issued by the central committee of the party and the ministries.

Work on supporting to the construction has startedAlthough the name and related policies is still to be further defi ned, work on supporting to the construction by counterpart provinces has started.It is reported that the national counterpart supporting work in Xinjiang conference was held in Beijing at the end of March. A new round of supporting work to Xinjiang was given its prelude. This will set a new record on the supporting work in Xinjiang in the history of China for several decades. The supporting has the widest area, the most population involved, the largest investment and the most comprehensive fields. It is also a great mobilization at the national level in policies, funding, personnel and other factors, including 19 provinces and cities such as Beijing, Tianjin, Shanghai, Guangdong, Liaoning, Shenzhen, etc. that are responsible for the supporting work. According to the counterpart supporting plan, the 19 provinces and cities will be respectively responsible for the supporting of their counterparts covering 12 prefectures (states), Cities, 82 counties (cities) and 12 divisions of the Xinjiang Production and Construction Corps. Besides Urumqi and Karamay, the scope of the corresponding supporting basically covers the whole area of Xinjiang benefiting areas all around the Tianshan. As of April 27th, there had been 16 provinces and cities that had been decided to join the supporting plan. A new round of work had been put into the implementation phase. Guangdong Province (including Shenzhen), Shanghai and Shandong are responsible for the supporting work to Kashgar.Information indicated that: in early 2009, the central committee of the party decided to make a major breakthrough on the capital investment in the three prefectures like Kashgar in order to promote the development of these areas. According to the approved "Special Plan for the Project in the Three Southern Regions", from 2009 to 2013 the state will invest 50 billion Yuan in the three states to more than 13,000 large and small projects. In the next five years, Guangdong (including Shenzhen) will earmark funds to 9.6 billion to counterpart Kashgar for the construction of "2 cities and 3 counties." Recently, a large number of construction projects to

key counterparts cities have been intensively started.Public information indicated that, from April 16th to April 17th, the four pilot projects with a total investment of nearly 200 million Yuan by Shandong Province to Kashgar had been launched. Part of the funds used for the projects was given for free by Shandong Province; on May 16th, the construction of 18 primary schools and urban & rural social welfare supporting center by Shenzhen to Kashgar had been launched at the same time; on May 17th, the construction of Taxkorgan county people's livelihood – the Level 2 Class 1 hospital project, aided by the Shenzhen, with investment of 30 million Yuan, covering an area of 50 Mu, and with building area of 8,000 square meters started…Taking Guangdong Province as an example, according to the report of "Xinjiang Daily", a few days ago, Guangdong Province has decided to set up 100 million Yuan as the starting fund for the fi rst pilot project, to start projects on new rural seismic housing, reconstruction of dangerous shanty towns, small towns of agricultural infrastructure and facilities. The project started as a pilot, which will establish a comprehensive model to accumulate experience for the projects that opens in the next year.The volocity of the promotion of the supporting work begun to dramatically ignite the enthusiasm of the locals. According to the report, facing the support, Kashgar seems to have made full preparations. Better than before, the supporting work to Kashgar by other provinces began in 1997. Liu Xuejie, consultant of the government of Kashgar city concluded that it is “signifi cant” that the original supporting with single

Kashgar will face a new round of development by leaps and bounds.

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project and limited financial assistance had changed now to the new supporting in full fields, with generous support and strategic intention. According to the information published by the website of the National Tax Administration on June 12th, till now, the pilot projects of the four provinces, 21 projects and total investment of 390 million Yuanhave been launched in the Kashgar area. Kashgar local tax system will conscientiously implement the spirit of the central work conference in Xinjiang to provide efficient and convenient tax services to the corresponding construction projects by the counterparts’ provinces and cities.

Boiling Kashgar "Elements"Without doubt, Kashgar will face a new round of development by leaps and bounds. In such conditions, the whole city is now changing. "House prices rose, stock prices also rose, people are boiling up" said Xia Yu, director of the Beijing Office of the Administrative Office of Xinjiang Kashgar and deputy director of China Merchants of Xinjiang Kashgar. Many senior comrades that have lived and worked

together in Kashga called to congratulate. People said, "Here comes the spring of Kashgar!" People know that th is spr ing wi l l be sunny, prosperous and with the recovery of all things. The whole city was filled with feelings of excitement and desire… At the same time, they also feel the subtle changes taking place around them. Zhang, a local resident felt that the most obvious change is the soaring of the housing prices. According to his understanding, the beginning of the urban housing prices in Kashgar was nearly within 2,300 Yuan per square meter in the beginning of the year but now grew up to more than 3000 Yuan per square meter. Price of remote areas had also reached 2500-2600 Yuan per square meter. A director of the Kashgar housing authority office said in a telephone interview, average price of housing in Kashgar in 2009 was 1900 Yuan per square meter, reached an average price of 2600 Yuan per square meter in March this year and is expected to climb up to 3,000 Yuan per square

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Night of Kashgar

People know that this spring will be sunny, prosperous and with the recovery of all things. The whole city was fi lled with feelings of excitement and desire…

meter by the end of this year. Li Yonghong, manager of the real estate department of Aijia Real Estate Information Site told the reporter that after the spreading of the good news, the price of second-hand housing slightly rose. The price was floating around in 100-200 Yuan. The impact on the housing rental market has not yet appeared. Li Yonghong said that because the local real estate market is expected to be optimistic, her company is considering expanding the kinds of business. Of course, "Kashgar opportunity" also boosted private capital investment. Emerging of outer investors is also a scene that can not be ignored. On June 11th, an officer named Nie told the reporter that after the spreading of the good news, China Merchants hotline has been ringing all the time. Visiting people flocked to the office, sometimes seven or eight groups per day seeking for information. Intention of investment mainly focused on real estate, foreign trade, urban infrastructure construction and other fields. Kashgar region also held investment promotion exhibitions in Shanghai and Guangdong (including Shenzhen). In

addition, investment promotion exhibitions will be put into Shandong after the Kashgar Trading Conference.Offi cer of investment sector of Kashgar City Merchants introduced that they were out for investment in the past, but investors are now coming to them. Sometimes there could be dozens of guests and the hot line could be “too hot to touch”. Sometimes there were calls even at four or fi ve o'clock in the morning. After the spreading of good news, enterprises did move swiftly to Kashgar. But more companies and investors are waiting. On one hand, the relevant national and local policies are still remaining uncertain. On the other hand, they are waiting for the implementation of railway, route and visa. According to reports, a reporter of Kashgar Daily said that on the closing day of the forum, there were bosses fl ew to Kashgar and purchased a unit cell in the Fengcai zone near the press. The annual Trade Fair in Kashgar is an important economic activity. The Sixth China Xinjiang Kashgar-Central & Southern Asian Trade Fair on June 28th was held in the International Convention and Exhibition Center of Kashgar City, which is particularly unusual this year. Within half month till the opening of the fair, the reporter contacted the reception group of the fair. An officer name Zhou said that they never expected the fair could be so hot. They went out for investment in the past, but investors without invitations are now coming to them. Over 6,000 hotel beds in Kashgar region were sold out before two weeks of the opening of the Fair. Other appointment had to transfer to the cities and counties nearby. There were more than a thousand beds booked only in Shandong Province.According to previous reports of Tian Shan Net, the total exhibition area of the fair is 3.2 million square meters, including 1,000 indoor booths and 300 outdoor booths. The Fair of this year will focus on the projects of the "nine bases" and the "one central city", namely, the construction of textile industrial base in western China, southern metallurgical industrial base, important national petrochemical base, characteristic agricultural deep processing base in western China, export-oriented processing and manufacturing base to the countries around, halal food production and supply base for the majority of Muslim countries, important material base for the business logistics to the countries around and the destination for international tourists. Total construction area of the “Big Kashgar City” will be more than 100 square kilometers and the population hereof will be over one million.

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Kashgar – High land in advantages VS. Low land in capital

By Staff Reporter Zhulangerile

Unparalleled advantages provide Kashgar with huge potential in development. More and more of the capital began to flock to this hot spot.

Kashgar - the famous "Pearl of the Silk Road" of the motherland and the world. The word “Kashgar” means the "place where gems are concentrated" in Uygur language. Mostly like her name, Kashgar is a beautiful, fertile place with a long history, splendid culture, rich folklore and rich resources, which indicate the unique style of this famous western city. The city enjoys the good reputation of "you have never been to Xinjiang, if you have never been to Kashgar.”

Reviewing the history, holding the present, looking forward to the future, the land is now

saving the power for a breakthrough like a butterfly coming out of the cocoon to revive the glory of the city in "Modern Silk Road". Kashgar has become the focus of the industry. Businessmen are flooding to the city check on the environment for investment and seek their "Kashgar Opportunities". In an interview with our correspondents, Xia Yu, director of the Beijing Office of the Administrative Office of Xinjiang Kashgar and deputy director of China Merchants of Xinjiang Kashgar said that there are 6 advantages in Kashgar: location advantage, resource advantage, market advantages, policy advantage, institutional advantage and style advantage. We are going to interpret Kashgar's investment environment for the readers to provide references to Chinese and foreign investors.

Combination with location advantage and market advantage It is described in the invitation of the 6th Kashgar Trade Fair that "Kashgar, located in Xinjiang, is the bridgehead of our country to the west. It connects with 8 countries such as Pakistan, Tajikistan, Kyrgyzstan and India on the border or by adjacent. There are four Class-1 land boundaries, 1 new international air port and the Xinyifa Class-2 port that can be used. It has unique advantages in port and location of the '5 ports (banks) to eight countries, 1 road connects Europe with Asia'. The No. 32 document of the State Council pulled the idea that 'we are going to build Kashgar City to a Central city of regional business and tourism facing to Central Asia'. The positioning drew a great blueprint for Kashgar and provided a unique opportunity for Kashgar to revive the brilliance of the Pearl in the Silk Road."

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The saying that '5 ports (banks) to eight countries, 1 road connect Europe with Asia' tells the unique location advantage of Kashgar, which is not only unique in China but also extremely rare in the world. The ancient "Silk Road" merges here by South Road, North Road and Middle Road.

The saying that '5

Kashgar, located at the crossing of No.314 and No.315 National Highway, is an important entrance and bridgehead to Central Asia and Southern Asia. There are now the Khunjerab port, Turgart port, Irkeshtam port, Karasu ports, international airports, four Class-1 ports and the Class-2 Xinyifa port in the city. It is a great international channel for entering into Central Asia, South Asia, West Asia and Europe. Especially with the improved road network, opening of the air corridors, opening of the railway from Kashgar to Hotan, construction of the Shache airport, the future Kyrgyzstan-Uzbekistan Railway, construction of the railway from China to Pakistan, Kashi's strategic position will be even more prominent. The saying that '5 ports (banks) to eight countries, 1 road connect Europe with Asia' tells the unique location advantage of Kashgar, which is not only unique in China but also extremely rare in the world. The ancient "Silk Road" merges here by South Road, North Road and Middle Road. The rare geographical advantage also provided a fertile soil for the economic development of the local trade making Kashgar economic and trade cooperation point of China with Central Asia, Southern Asia and Western Asia. It was reported that Xu Guangyan, Deputy Secretary of Kashgar Prefecture Administrative Offi ce proudly said that "We have market of 1.3 billion people towards the east and the same towards the west". Officer Dai, chief of the trade office of the Trade Authority told the reporter that this particular location for the Kashgar market and resources provided Kashgar with markets and resources from both inland and abroad. The reporter learned from the Merchants that there is a huge consumer market that three countries has not been fully developed with a population of 1.3 billion in the five Central Asian countries and 3 Southern Asian countries. After 30 years’ reform and opening up in equipment, technology, management and funds, China now has strong advantages and higher development level than the surrounding country for 15 years -20 years, which could be the "golden period" for economic and trade exchanges with the surrounding countries. At present, the level of development of Central Asian and Southern Asian countries is gradually increasing with more favorable investment policies. Their investment environment had gradually improved, which is very conducive for

China to carry out trade and economic cooperation with them; China is a big country in exporting of light industrial products, textile, home appliances and other goods production, which could provide broad prospects for cooperation with neighboring countries. Neighboring countries are very rich in oil, gas and mineral resources, which are strongly complementary to us. Statistics showed that total imports and exports from the Kashgar region increased from over 65 million U.S. dollars in 2005 to 1.66 billion U.S. dollars in 2008, with an increase of nearly 25 times. Total value of imports and exports reached 1,013,730,470 U.S. dollars, with exports of 1,012,864,500 U.S. dollars and imports of 86.5971 million. Major exporting products are the apparels, footwears, general merchandise, textiles, etc.; major exporting countries are Kazakhstan, Kyrgyzstan, Pakistan, Uzbekistan, Tajikistan and other countries in Southern Asia. It is understood that relying on the location advantage and huge potential market around, Kashgar proposed the development strategy that "to build Kashgar as the center of economic circle of Central Asian and Southern Asian", implementing the plan that "trade goes first, industry follows". Kashgar is also going to build the two bases and one center, that is, "the distribution base for goods imported from the west and exported to the east and the processing base for goods connected to the east and exported to the west” and the “regional center for trade and tourism facing Central Asia” to promote the development of the industrial economy by promoting the development of trade.According to Mr. Dai’s analysis, Kashgar is going to face an increase by leap and bounce with the economic recovery and the supporting policies of the neighbor countries.

Rich resources promoted economic prosperity As its name, "a place where gems concentrated", according to tectonic and metallogenic condition analysis, one of the three biggest metallogenic belts goes through the western Kunlun Mountains. Therefore, Kashgar City should be a rich region of mineral resources with broad prospect of development and utilization. There have been 67 kinds of minerals and 224 mines found. There are 12 big mines among them. Gypsum and serpentine

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Kashgar has a vast territory and rich resources.

reservation ranks first in China. The reservation of oil, natural gas, iron, copper, lead, zinc, jade, limestone, quartz and silicon is also rich. The grade of mineral resources is very high. The rate of iron ore content is up to 60 -70%. The reservation of mineral resources of countries around Kashgar such as Pakistan, Afghanistan, Kyrgyzstan and Tajikistan is also rich and has attracted large domestic exploration and development companies, such as the China Metallurgical Group that had won the bid for a world-class copper and gold mine in Afghanistan. Daye Group is now developing the copper and gold mines in the Kyrgyzstan Gukesu Valley of the Chon-Alay Osh region. I t is reported that, in recent years, Kashgar vigorously implement the advantageous resources transformation strategy and introduced robust domestic large enterprises for mineral development. Mining projects by large enterprises such as Yecheng Xingzuo, Zepu Kunpeng Chemicals, Jiashi Xinhui Copper, Shache Hengchang smelting have been under construction or finished. Pakistan Chu Yarkand vanadium and titanium magnetite smelter and a number of large-scale mineral development projects in production or under construction has been completed to Yecheng, Tower County in the Kunlun Mountains iron ore development to Bachu, Jiashi as the center of South Tianshan vanadium iron ore, copper development and smelting, to Shache, lead and zinc smelting Yingjisha centered and to Yecheng, ZIP boron chemical industry for the center area shape. Such chemical industrial zone has been

formed."At present, the proven reserves of mineral resources only account for about 25% of minerals that have been found. Our region is still in unclear situation of mineral resources." The reporters knew from the Kashgar Prefecture Bureau of Land and Resources that the development and utilization of mineral resources of Kashgar are still in the initial stage. Till 2009, the developed reserves of mineral resources only account for about 25% of minerals that have been found. In the established mining enterprises, except for a few enterprises on minerals such as iron, coal with a certain scale, the vast majority are small mines with low economic benefit. Kashgar is the prestigious "homeland of melons and fruits" and "homeland of cotton". The grain and cotton, fruit trees, livestock, natural resources have to be talked about while mentioning the rich resources of Kashgar. Special geographical and climatic conditions provide the unique development environment for Kashgar’s grain and cotton industry. Because of its high lint percentage, fiber length, good quality and large area Kashgar has become an important production base for cotton goods; as sunny climate fitness, a wide variety of fruit, fine texture and rich nutrition, Kashgar is one of the world's six major bases in the green fruit, dry and fresh fruit production. All year round, there are always fruit fragrance in the market, such as pomegranates, grapes, fig, almond , apricot, mulberry, peach, pear, pistachio, walnuts, sea buckthorn, muskmelon, etc.; livestock industry is the dominant industry in Southern Xinjiang. According to "two big and one special" development strategy and industrial structure, southern parts of the state proposed and implemented a series of measures to promote livestock development strategy to make livestock farming as the main channel of the increasing of the famers’ income. There are 7.8 million livestock in Kashgar region with output of 300,000 tons of meat. The livestock numbers and meat production account for one-sixth of the total amount of Xinjiang. As indicated in the Statistics "Economic and Social Development Statistical Communique of Kashgar in 2009" released by the Statistics Bureau of Kashgar Prefecture that in the year 2009, Kashgar has 2.5886 million ton of grain products, 306,800 ton of cotton products, 2,487,700 ton of vegetables output, 2.845 million ton of melon products, 1,391,800 ton of fruit

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Kashgar is a famous "hometown of cotton" and "hometown of melons and fruits" (provided by Merchants Kashgar).

"You have never been to Xinjiang, if you have never been to Kashgar.” The charm of Kashgar is more in its cultural value that it is a short form of thousand years’ brilliant civilization. Kashgar has much of cultural sceneries and with rich ethnic customs.

"You have never

products; there were livestock herds of 7,996,500 (only), the annual livestock slaughtered is about 7,196,700 (only), total output of 327,300 ton of meat products, 173,200 ton of milk products, 6.15 ton of egg products, 8.4 thousand ton of aquatic products. According to the introduction of the staff of the Agricultural Bureau of Kashgar, Kashgar is a large agricultural area in southern Xinjiang. Agricultural population accounts for 80% of regional population, but the development of the industry chain is still imperfect. Taking the production of cotton for an example, cotton is the most important local planting crops, of which yield is about one-third of Xinjiang's cotton production. But the advantages of raw materials have not been fully utilized and most enterprises are on simple processing of downstream products. The enterprises are mainly the medium and small enterprises. Lack of large enterprises could be a huge market space.

Historical and cultural city promoted tourism Unusual natural scenery, decorating Kashgar earth, makes Kashgar so splendid. The vicissitudes of geologic time make Kashgar contain the world's unique mountains, rivers, deserts, oases, grasslands and forests. The terrain slopes from southwest to northeast. Landscape contour is formed by the stable Tarim, Kunlun Mountain and the Tianshan geosyncline folding belts. Three sides of Kashgar are round by mountains and one side opening. There are south Tianshan vein lying in the north, Karakorum Mountain stretching from the east to the west in south, Pamirs highland in the west and the vast expanse of the Taklimakan Desert in the East. The Yarkand River and Kashgar River alluvial plain around by the mountains and deserts look like a

green gem surrounded. Humid air of the Indian Ocean could hardly reach. Cold Arctic air is also difficult to penetrate. Such conditions give the warm, dry and hot weather to Kashgar region with desert landscape. Mountain snow melted water create the conditions for the development of the two famous oasis to form a more concentrated Kashgar and Yarkand River… There are Pamirs highland called roof of the world's, long and winding Yarkand River, a year-round crystal "Father of the iceberg"- Muztagata iceberg, world's second highest peak - qogir peak, bright and beautiful mountain lakes - Kara Kul, the "sea of death"- the Taklimakan Desert, the millennium original populus euphratica called "lives for a thousand years, dies for a thousand years and stays immortal after death for a thousand years” and the vast expanse of desert & Gobi… "You have never been to Xinjiang, if you have never been to Kashgar.” The charm of Kashgar is more in its cultural value that it is a short form of thousand years’ brilliant civilization. Kashgar has much of cultural sceneries and with rich ethnic customs. The changes of historical period make Kashgar the crossroad of the world's four major ancient civilizations. It has a long history and splendid culture of the Silk Road. Kashgar is one of the earliest place to accept Buddhism, but also a place where the earliest to accept Islam. The famous tomb of Aparkhuja (the tomb of Xiangfei), Id Kah Mosque, Ban Chao Memorial Park, the tomb of Yusup Haas Haji Fu, the Yarkand Khanate ruins, the tomb of Mohammed Kashi Karma, the high-profi le residencel, Tower of Moerfo, City of the King of Tang, ruins of Stone City and other historical sites are describing the passing of time, detailed telling the former

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Kashgar is a national historical and cultural city. The ancient cultural landscape and unique natural landscape merges here (provided by Merchants Kashgar).

glory, which is a good place to trace the changes of Western history and culture. Zhou Tao, a Xinjiang writer in the "wake-up order" said that: "You can look through the internal organs of many cities, but you cannot see through the misty eyes of Kashgar." Kashgar left mysterious, calm, far away and unfamiliar impression and great joy to people. Uygur folk customs, arts and culture, architectural style and the characteristics and the essence of the traditional economy blend in here. Not to mention passionate Maximilla playing and singing; not to mention the famous customs of Id al-Adha, Rouzi Jie and Diaoyang; not to mention the bustling and filling Kashgar Bazaar; not to mention the Uygur girls wearing embroidered caps, colored scarves and flowing skirts… just the common urban scene with Uygur old men driving a donkey cart on the street and the waiter with the special accent is enough to affect the visitors. Kashgar has six name cards: national historical and cultural city, excellent tourism city, the hometown of song and dance, the hometown of melons and fruits, the hometown of Bazaar, the hometown of halal snacks. Kashgar's wonderfulness makes many people stop their steps. Kashgar's style makes many people stay. It is also a photographer's paradise. Every year photographers carried "Guns and Rifles" to gather in here and spread out the impression of Kashgar. Ancient cultural landscape and unique natural beautiful picture also stimulated the development

for local tourism, constituting the most promising tourism in China. It has become a great development point of tourism in the 21st century. As indicated in the "Economic and Social Development Statistical Communique of Kashgar in 2009" released by the Statistics Bureau of Kashgar Prefecture that there were about 1.53 million tourist arrivals in Kashgar in 2009 and the total tourism income was 680 million Yuan. Kashgar received 1.495 million domestic tourists 30200 tourists abroad.

The most massive policy tilting and the institutional superiority The present v i ta l i ty o f Kashgar can not be realized without policy support and is an important manifestat ion of the inst i tut ional superior i ty. Information available to the press by Merchants of Kashgar shows that the Central Committee of the Party has been considered the opening to the west, strengthening Merchants of Kashgar with Central Asia and Southern Asia as an important component of foreign policy. The legal framework for bilateral economic and trade of the members of "Shanghai Cooperation Organization" has been shaped and improving. Bilateral practical cooperation is putting to higher level, which has created a good international envi ronment for economic cooperat ion wi th neighboring countries by Kashgar. "To implement the western development strategy, there has been the implementation of appropriate

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Notes: Photos without specific notes are provided by Yan Xuguang, Adilijiang. Abudukadeer and Jia Weidong.

aid for more than 10 years since the eastern coastal provinces and cities began to aid Xinjiang in 1997. In 2000, the State Council formulated the "Notice on the implementation of a number of western development policies and measures by the State Council"(GF [2000] No.33) and a series of policy measures; in 2007, the State Council document No. 32, specifi cally made a major strategic plan for the development and stability of Xinjiang, confirmed the most important strategic position of Xinjiang and proposed to build Kashgar as an international trade and tourist center facing the Central Asia." The central work conference in Xinjiang held in May this year is unusual to the people of Kashgar, because the meeting provided a rare historical opportunity to the rapid economic and social development of Xinjiang, especially of Kashgar.The meeting proposed tasks and specific measures to speed up the development of various undertakings in Xinjiang's economic and social affairs and issued a series of favorable policies for the development of Xinjiang Kashgar: First, the establishment of the State Council in Kashgar special economic zone is confirmed. The establishment of special customs supervision areas businesses in the region will enjoy a special customs supervision policy (bonded, tax-free value-added tax and consumption tax); Second, new enterprises in Kashgar will enjoy enterprise income tax of the "three-free two-half" policy; Third, the government will increase financial supporting efforts. The investment in fixed assets in Xinjiang during the "Twelfth Five-Year" will be more than double than the ones during the "Eleventh Five-Year"; fourth, the government set a series of functional policies for Xinjiang only. The government has decided to take the lead in Xinjiang resource tax fee reform and changed the price of the crude oil and natural gas by quantity to by price; the government will encourage all kinds of banking institutions in remote areas of the service network, joint-stock commercial banks and foreign banks to establish branches in Xinjiang; the government will appropriately increase in the scale of construction land and the new construction land occupied by unused land targets; the government will appropriately loose the limitation for entering restricted fi elds in Xinjiang; the government will gradually relax the policy of utilization of natural gas and increase the scale of the local use of natural gas. "Gathering united power of the whole country to

support the construction of Kashgar in Xinjiang, especially the accelerated development of social undertakings and benefi t the people of all nationalities are the things that cannot be done by other countries. This is the most realistic and most concentrated expression of the superiority of the socialistic system with Chinese characteristics. Leaders and people of all ethnic groups in Kashi of Xinjiang have no reason for the work racing against time. We will do a solid job till death to thank the Party, the socialistic system and the great motherland." said Xia Yu, director of the Beijing Offi ce of the Administrative Offi ce of Xinjiang Kashgar and deputy director of China Merchants of Xinjiang Kashgar.Some said that Kashgar is about to enter a new era of the best and fastest development. According to reports, the blueprint of Kashgar prefectural administrative offi ce is: by 2020, the GDP of Kashgar will reach 154 billion Yuan, achieving more than quadruple goal than 2010; the per capita GDP will reach 30,000 Yuan; farmers and per capita net income of farmers will be more than 10,000 Yuan; the per capita income of urban residents will be over 30,000 Yuan. Kashgar has the history of the spirit of hard work, solid work and time saving. "We are confident and capable of facing the great development opportunities. We believe that under the support of national policy, with the help of counterparts’ provinces and cities, the face of Kashgar will be changed and the living standards of people of all nationalities will be improved." said Shi Dagang, the secretary of the Prefectural Party Committee of Kashgar in an interview. "You invest, I will pave the way; you operate, I will serve; you are in trouble, I will help; you make money, I will protect". It is understood that the investment sectors of Kashgar has been committed to improving the investment environment and strive to create the social atmosphere that is kind, secure, supporting and profi table for business to optimize the soft environment for investment and issued a series of preferential policies. In the investment and other specific services, the government has also been working hard and committed to provide investors with "one-stop-style" of quality, dedicated and attentive service. The government will increase the strength of service and implement the leaders’ responsibility system for major investment projects that could make great force to the industry.

by 2020, the GDP of Kashgar will reach 154 billion Yuan, achieving more than quadruple goal than 2010; the per capita GDP will reach 30,000 Yuan; farmers and per capita net income of farmers will be more than 10,000 Yuan; the per capita income of urban residents will be over 30,000 Yuan.