During the ongoing session of the Ninth National People's Congress, Abulait Abudurexit, chairman of Xinjiang Uygur Autonomous Region, has been a popular figure among the press. On March 8, Abudurexit gave a small press conference in the office of the Xinjiang regional government in Beijing, briefing reporters on the economic development and social stability in Xinjiang, the northeast area of China that borders Mongolia in the northeast; Russia, Kazakhstan, Kirghiszstan, and Tadzhikistan in the west; and Afghanistan, Pakistan, and India in the southwest. The second in a two-part series, Abudrexit focuses on the development of West China.

West Development

The central government has increased investment in western regions, especially in the field of infrastructure, said Abulait Abudurexit, chairman of Xinjiang Uygur Autonomous Region who cited as an example a special fund of over 7 million yuan (US$845,411) appropriated for highway construction and ecological project construction in the Tarim River area.

"The strategy of developing west China has brought tremendous changes to Xinjiang," Abudurexit said.

Xinjiang -- the northwest region of China that covers one-sixth of the country's total area -- is rich in natural resources and has advantages in agricultural and pastoral industries. How to turn the advantages into the distinctive economy with local characteristics?

Agriculture should be the leading factor, Abudurexit said.

"We should explore ways to achieve high quality at low cost in the development of the main crops of the area. Some products, like carrots and tomatoes, have great potential for local economic development."

Abudurexit stressed that Xinjiang should also explore ways to create distinctive industries with local characteristics. "The fundamental direction forward for the area is through giving play to its advantages and developing a distinctive economic structure with local characteristics."

Inter-regional Cooperation

The state's strategy of developing the west has enhanced the cooperation between Xinjiang and other provinces and cities to an unprecedented degree, Abudurexit added.

Abudurexit said commercial activity between Hong Kong and Xinjiang has been very active recently, with merchants from Hong Kong gradually increasing their investment in Xinjiang. To date, the total overseas investment in Xinjiang stands at US$407 million of which half is from Hong Kong. Last year the foreign-trade turnover of the region hit US$1.77 billion, of which the trade volume with Hong Kong was US$150 million. In addition, since the campaign of developing the west was launched, Xinjiang has been visited frequently by inspection teams composed of Hong Kong merchants, whose investment interests focus on such industries as tourism and service.

Beginning with the trade of household wares before 1949, and later with cotton, materials and industrial products, the cooperation between Xinjiang and Shanghai has a long history, and the scale of the cooperation is becoming even greater. The project to transport gas from the west to the east has further strengthened their cooperation in many fields including economy and trade. The recent cooperative projects between Xinjiang and Shanghai include: An inspection tour of Xinjiang by the delegation composed of Shanghai enterprisers, exchanging and training of personnel, technological cooperation among processing corporations.

"Developing the west has brought in unprecedented opportunities for Xinjiang. Today's Xinjiang is undergoing amazing changes in many fields including in transportation, energy, communication and new technologies," said Abudurexit.

Challenges and Opportunities After WTO Entry

Abudurexit described China's entry into the World Trade Organization as essential for opening still wider, improving market economy and helping China get involved in economic activities of all fields. He pointed out the following three main challenges facing Xinjiang:

• Need for higher competitiveness and cost-effectiveness in local enterprises.

• Need for adjustment of government functions in regard to law and market regulation according to WTO rules.

• Need for more talented people and qualified personnel.

"It is the most importance task for Xinjiang to transform its resource advantages into economic advantages. The only way to enhance market competitive edge is to accelerate the development of agriculture and industry," Abudurexit said.

Goals Xinjiang has set for the coming four years include: Larger input in infrastructure construction, exploitation of oil and natural gas recourses, development of agriculture with Xinjiang characteristics, and promotion of science and education.

Relations With Neighboring Countries:

As everyone in China knows, Xinjiang borders on Kazakhstan. Speaking of the relationship between Xinjiang and Kazakhstan, Abulait Abudurexit said, Kazakhstan is the major trade partner of Xinjiang. Among the sixteen open ports of Xinjiang, Kazakhstan accounts for six. The trade value with Kazakhstan reached US$1.1billon last year.

A Kazak population of more than one million people live in Xinjiang Uygur Autonomous Region. They speak the same language as the people of Kazakhstan. The exchanges and trade cooperation between the two regions is therefore friendly and for the long term. Ili and Lisi rivers are shared by Xinjiang and Kazakhstan. With the development of the economy, the rational exploitation and utilization of these two rivers by Xinjiang will further improve the ecologic environment along the two rivers and bring benefits to people live downstream.

Speaking of the region's relations with middle-Asian countries, Abulait Abudurexit said, Xinjiang keeps good-neighborly and friendly relations with all neighboring countries. He also said that exchanges among the member countries of the Shanghai Cooperation Organization (SCO) will be conducive to fighting against terrorism and to promoting economic development as well social stability.

"We believe, this is in line with the basic interest of every country," said Abudurexit.

(By Yan Xinxia, china.org.cn staff reporter, March 13, 2002)