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Xinjiang Autonomous Region

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Xinjiang Autonomous Region OBOR OPPORTUNITIES Xinjiang Autonomous Region OBOR Opportunities Infrastructure Energy Population 23 million Logistics GDP £92.6 billion Finance and Professional grew 10% in 2014 Services GDP per capita £4,061 Disposable income per capita £1,510 Xinjiang has been designated as the “core The “three passageways” area” of the Silk Road Economic Belt. It is an important part of the old Silk Road and “three bases” and shares borders with eight countries: • Three passageways: northern, central Afghanistan, India, Kazakhstan, Kyrgyzstan, and southern passageways will link the Mongolia, Pakistan, Russia and Tajikistan. three economic circles on the east coast – the Bohai Bay (Beijing, Dalian, Tianjin), the Xinjiang aims to develop into a transport hub Yangtze River Delta (Shanghai) and the and a centre for financial, logistics, culture Pearl River Delta (Guangzhou, Hong Kong, and education. It is currently focused on the Shenzhen) – with Kazakhstan, Pakistan, development of three specific passageways Russia and Tajikistan via key cities in and three bases linking the cities of Hami, Xinjiang. Kashgar and Urumqi to the major economic centres in China. • Three bases: bases will be established focusing on oil and gas production and processing; coal, coal power and the coal chemicals industry; and wind power. Xinjiang aims to The China-Kazakhstan Horgos Frontier International Cooperation Centre is develop into a Xinjiang’s only cross-border free trade transport hub area and offers preferential policies by way of a bonded zone, reduced import and a centre duty and VAT, and free movement of for financial, people. It will be further developed to promote trade and connectivity between logistics, culture China and Kazakhstan and to expand and education” across central Asia, the Middle East and on to Europe. OBOR OPPORTUNITIES / Xinjiang Autonomous Region The China-Central Asia Natural Gas Pipeline will start in Turkmenistan and end in Xinjiang with a total investment of around £4 billion.” Infrastructure Energy To implement construction of the three Xinjiang is important nationally for its energy and passageways, work will focus on the China- mineral resources, especially as the resources have Kyrgyzstan-Uzbekistan Railway (which starts in not yet been fully exploited. One project is the construction of the China-Central Asia Natural Gas Kashgar), the China-Kazakhstan Road, the China- Pipeline (D Line), which starts in Turkmenistan and Tajikistan Road and the Urumqi Airport pilot project. ends in Xinjiang with a total investment of around £4 billion. Xinjiang will also strengthen the construction of a provincial network of roads and motorways and it is It is expected to create thousands of jobs for estimated that infrastructure investment in Xinjiang countries along the route. Xinjiang also plans to will exceed RMB 800 billion (£80 billion) in 2015 . speed up implementation of the West-to-East Gas Transmission Project (3rd, 4th and 5th Lines). Opportunities are foreseen for UK companies in design, cost management, project supervision and Opportunities will also be found in other projects, supply chain support. including the exploitation of hydropower resources, sewage treatment, and grading and quality-divided use of coal and natural gas. Logistics Financial & Professional Services Xinjiang will develop a number of international trade Xinjiang aims to become a major financial centre and distribution centres, cross-border markets and on the Silk Road Economic Belt, with Urumqi at the storage centres, and logistics parks in key cities centre with Kashgar as a sub-centre. The city of such as Urumqi, Kashgar and Yining. Horgos is also being planned as an offshore RMB settlement pilot zone. Xinjiang plans to establish This includes the construction of the Kashgar a platform for financing, and foreign exchange Economic Development Zone, Urumqi Economic transactions, and has already carried out cross- & Technological Development Zone (Touhetun border RMB settlement with over 60 countries. District) and Horgos Economic Development Zone to develop international multi-modal transport and More pilot financial services projects are being logistics hubs. encouraged in Kashgar Economic Development Zone and Horgos Economic Zone. UK companies experienced in the management of logistics and warehouses, the internet of things and The establishment of the Xinjiang Bank is also information technology may find opportunities here. expected to promote the development of a local financial market, and there are plans to initiate an international petroleum trading centre. OBOR OPPORTUNITIES Fujian Province OBOR Opportunities Transport Infrastructure and Logistics Marine and Fisheries Population 38.1million Creative, Culture GDP and Tourism £240.6 billion grew 9.9% in 2014 GDP per capita £6,347 Disposable income per capita £2,333 Private (mainly diaspora) capital Overall GDP has tripled between 2005 investment has had a strong influence and 2012, exceeding RMB 2 trillion in Fujian’s Role on the on development in Fujian, accounting for 2013. However, owing to the spatial Maritime Silk Road 69% of the economy in 2013. The main distribution of industry – much of which sources of foreign investment come from is concentrated along the coastline Fujian Province is designated as overseas Chinese in Hong Kong, Taiwan opposite Taiwan where there is easy the “core area” of the 21st Century and South-East Asia. In 2013, foreign access to ports – the south-eastern part Maritime Silk Road, particularly with investment from Hong Kong and Taiwan of Fujian, which comprises the five cities amounted to US$9.875 billion, accounting and counties of Fuzhou, Putian, Quanzhou, a view to China’s cooperation with for 90.2% of the total contracted foreign Xiamen and Zhangzhou, is the economic ASEAN countries on transport links, investment in Fujian Province. In 2013, hub of Fujian, accounting for 76% of the trade and investment and the marine actual paid-in capital from Hong Kong and province’s GDP in 2012. Xiamen is the economy. Fuzhou, Quanzhou, Xiamen Taiwan was US$5.745 billion, accounting wealthiest city in Fujian (and also one and Zhangzhou are given as the key for 72.5% of the total provincial paid-in of the wealthiest in China) with GDP per cities in the province as regards the amounts. capita of US$13,279. By contrast, the development of OBOR. average figure in the rural, mountainous In terms of the future, the government’s inland area is below US$2,000. There are three large projects under current economic development plans way, all sponsored by the China-ASEAN (set out in the 12th Five-Year Plan) centre Maritime Cooperation Fund: the China- on the development of inland areas through urbanisation, industrialisation Xiamen is the ASEAN Marine Product Exchange and agricultural technology. Another wealthiest city (headquartered in Fuzhou with branches important factor in Fujian’s current in Indonesia and Thailand); Xiamen phase of development is the Taiwan in Fujian (and University’s Malaysian campus; and fishing Straits Economic Zone, which aims to also one of the industry cooperation between China and strengthen economic cooperation with Indonesia. Fujian has also established Taiwan by developing more advanced wealthiest in economic and trade cooperation zones in manufacturing, and the service sector, as China) with GDP Cambodia and Kenya, and it plans to build well as the wider integration of transport more along the trade route, including in and infrastructure designed to boost per capita of Laos and Sri Lanka. cross-strait trade flows. US$13,279” OBOR OPPORTUNITIES / Fujian Province Marine and Fisheries By 2020, Fujian will have 850 oceangoing fishing boats, with an annual production output of 750,000 tonnes and a value of RMB 10 billion (£1 billion). There are plans to build up to 15 overseas aquaculture bases, eight pelagic fishery bases in the province, and 15 fishery bases offshore. Cooperation with OBOR-related countries such as Indonesia, Madagascar, Myanmar and Tanzania will be stepped up in areas from overseas fishery bases to marine tourism, marine biomedicine, deep-sea fishing and the processing and distribution of aquatic products. The development of the Fujian Fujian Free Trade Zone (FTZ) Cross-Straits Blue Economic Experimental Zone is to be accelerated and a China-ASEAN maritime The pilot free trade zone aims to develop new cooperation centre established. industries in the region to strengthen economic cooperation in particular with Taiwan. The zone was UK companies can cooperate with Chinese launched in March 2015 and comprises three areas counterparts in R&D, fishing technologies and in or near the capital city Fuzhou and the coastal environmental protection, contributing to the cities of Pingtan and Xiamen. The impact of this can construction of economic demonstration zones, already be seen in recent Taiwanese investments marine technology parks and training bases. in commercial banks in Xiamen and infrastructure Opportunities also arise in shipbuilding, where UK investment in Pingtan Economic Zone, as well as companies are well placed to provide advanced closer manufacturing and transport links which technical and design-related support. will boost cross-strait trade flows. From Taiwan’s perspective, the imperative to boost its own economy and existing close economic ties mean Fujian is a natural choice for investors. Creative, Culture and Tourism Fujian places importance on cultural exchange with countries along the Maritime Silk Road. Besides Transport and
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