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UPDATED: August 24, 2012 NO.35 AUGUST 30, 2012
Taming the Wild West
Xinjiang embraces fast and far-reaching economic development
By Bai Shi
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RED HARVEST: Farmers load tomatoes onto a truck in a farm in Yanqi Hui Autonomous County, Xinjiang Uygur Autonomous Region, on August 9. Nearly 70,000 tons of tomatoes grown in the area were exported to Russia and other bordering countries this summer (DU BINGXUN) 

Compared with its traditional pillar industries including agriculture and animal husbandry, manufacturing in Xinjiang remained underdeveloped in past decades. However, the situation is changing as the region devotes more effort to develop secondary and tertiary industries.

The 2011 work report of the Xinjiang Regional Government announced the total GDP of the region reached 660 billion yuan ($104 billion) in 2011, a growth of 12 percent from 2010, with the secondary industry contributing to a greater portion of the total. According to the latest information published by the Xinjiang Statistics Bureau, primary, secondary and tertiary industries grew 1.02 percent, 53.3 percent and 45.79 percent respectively in the first half of this year. In particular, industrial added value reached 125 billion yuan ($20 billion) in the first six months, growing 11.2 percent over the same period of last year. Moreover, most industrial products saw a big rise in output, including automobiles at 47.7 percent, steel at 38.5 percent, and cement at 34.7 percent.

"It is expected that the growth for the latter half of this year will continue at a sound pace, as demand for energy and materials such as oil, coal and electrolytic aluminum will remain strong," said Wang Yue, Deputy Director of the Xinjiang Statistics Bureau.

Strengthening secondary and service industries is a priority in Xinjiang's development in accordance with its 12th Five-Year Plan (2011-15). According to statistics published in August by the Xinjiang Regional Development and Reform Commission, total fixed assets investment reached 115.25 billion yuan ($18 billion) in Xinjiang from January to July this year, covering 155 projects across the region. All of the projects have progressed smoothly. Investment in livelihood improvement, energy and manufacturing made up 86 percent of the total. Specifically, the investment in livelihood improvement was 31 billion yuan ($4.88 billion); in the energy sector, 43.3 billion yuan ($6.81 billion); and in manufacturing, 25.1 billion yuan ($3.95 billion).

Responding to the Central Government's calls to support Xinjiang's development, a large number of leading domestic companies have set foot in Xinjiang in recent years.

At a meeting in Urumqi last August, Wang Yong, Minister of the State-owned Assets Supervision and Administration Commission of the State Council, said that state-owned enterprises have adopted a positive attitude to investment in Xinjiang. In the 12th Five-Year Plan period, Wang estimated that state-owned enterprises would invest more than 1 trillion yuan ($157 billion) to drive Xinjiang's economic growth.

The promise is being fulfilled step by step. For example, the Shaanxi Automobile Group Co. Ltd. (SAG) opened its new subsidiary company in Urumqi in late 2011. Founded in 1968 in Xi'an, capital city of northwestern Shaanxi Province, SAG has grown into a large machinery and automobile maker in China. The company specializes in researching and manufacturing heavy trucks and other commercial vehicles.

The improving investment environment in Xinjiang encouraged SAG to sign an investment contract with the Urumqi Economic and Technological Development Zone on April 13, and construction of its new factory began shortly thereafter. At the end of July, the Urumqi assembly plant was completed and put into operation.

Tian Zhihua, head of the assembly plant of SAG's Xinjiang branch, said that the pace of SAG's development in Urumqi is on track despite of some difficulties.

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