Kashgar economic zone, putting Xinjiang a forward position of energy geopolitics

Summary

China declared at a high-profile summit the establishment of Kashgar Special Economic Zone in Xinjiang Uighur Autonomous Region, introducing preferential investment and taxation policies favorable to local governments and players.

Significance of the new strategy of speeding up development of Xijiang goes beyond maintaining political stability of the region, lying in broader geopolitical indications in Central Asia.

Analysis

The Party's Central Committee and the State Council of China have recently held a high-profile summit meeting, declaring the establishment of the Kashgar Special Economic Zone in Xinjiang Uighur Autonomous Region.
Xinjiang is a region well-known in its rich resources particularly energy including coal oil and gas, and potential political instability. Its economy is heavily resource-prone and dominated by state companies. To allow more local economic development, central government will introduce preferential investment and taxation policies, favorable to local governments and players.
Significance of the new strategy of speeding up development of Xijiang goes beyond maintaining political stability of the region, lying in broader geopolitical indications. Xinjiang borders a few geopolitically influential countries such as Russia, Kazakhstan, Afghanistan, Pakistan, India and Mongolia. With the establishment of the new economic zone, Xinjiang would be developing into a major trading and logistic bridge and platform and more energy, economic and political integration with Russia, Central and South Asia.

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