In the national race toward renewable energies, Ningxia has also been at the forefront, making pushes into wind and solar power. By the end of 2010, the region's on-grid wind and photovoltaic power capacity had doubled from a year ago. Moreover, the new energy fever has injected steam into a string of relevant manufacturing sectors, like wind turbines.

"Ningxia glitters with rich wind and solar resources," said Wu Yucai, deputy to the 11th NPC and Mayor of Wuzhong, Ningxia.

But more than 70 percent of power generators in Wuzhong are struggling to make ends meet due to relatively lower on-grid tariffs.

"There is therefore the growing need for the government to allow favorable tariffs and help stimulate the emerging sector," he said.

Meanwhile, the success with environmental protection has also given Ningxia a head start in the race toward a low-carbon economy. Its forest coverage rate was 11.4 percent in 2010, up from 7.79 percent in 2000. The region also put stringent controls on energy-guzzling and polluting industries including those that produce cement and iron.

"These measures may put a lid on growth rates, but it's well worth the effort given its far-reaching implications," said Yuan Jinlin, deputy to the 11th NPC and Director of Ningxia Development and Reform Commission. "Many coastal manufacturers are moving westward where lower land and labor costs will ensure profits. Ningxia, with resource advantages and transport network, is bound to benefit from that relocation."

Efforts are still needed to improve infrastructure, especially irrigation facilities, in the drought-stricken region. "It would also help add to Ningxia's attractiveness if the Central Government could hand out land and tax incentives," he said.

Trade with Arab nations is also a bright spot on Ningxia's economic landscape. In September 2010, Yinchuan, capital of Ningxia, successfully hosted the first Sino-Arab Economic and Trade Forum, providing a powerful catalyst for businesses between China and the Arab countries.

Wang said the forum is likely to be upgraded to a China-Arab Expo, covering a wider range of trade, investments and cooperation in finance and oil chemical sectors.

"Ningxia stands out as a link between China and the Arab world," Wang told Beijing Review. "Most importantly, it has deep cultural and religious connections with Arab nations since it is home to 2.17 million Muslims, over one third of Ningxia's total population.

"Our ambitions extend far beyond trade," he said. "Ningxia's long-term goal is to become a global production center, logistics center and exhibition center of Halal food and Muslim products."

Wang Rugui, deputy to the 11th NPC and Mayor of Yinchuan, said the industry is growing at a year-on-year growth rate of around 25 percent in Ningxia, but the region has still some way to go before catching up with domestic competitors.