Xinjiang Investment Guide

Key Insights

Xinjiang Uygur Autonomous Region, located in northwestern China in the heart of the Eurasian continent, borders eight countries and covers an area of 1.66 million square kilometers. With a population of 25.87 million (as of the end of 2022), ethnic minorities account for 57.76% of the total population.

As China's western gateway, Xinjiang is actively building a golden Eurasian corridor and serving as a bridgehead for China's westward opening-up, with 18 ports of entry (including 3 aviation ports) and 23 national-level industrial parks, including the newly approved China (Xinjiang) Free Trade Zone.

Xinjiang: China's Resource-Rich Western Frontier

Xinjiang Uygur Autonomous Region is located in northwestern China, in the heart of the Eurasian continent. With a land area of 1.66 million square kilometers and a population of 25.87 million (as of the end of 2022), the region administers 14 prefectures (cities) with ethnic minorities accounting for 57.76% of the total population. In 2023, Xinjiang's gross regional product reached 1,912.59 billion yuan, a year-on-year increase of 6.8%.

Xinjiang's Strategic Positioning:

Western gateway for China's opening-up
Golden Eurasian corridor
Bridgehead for China's westward opening-up

Abundant Natural Resources

Xinjiang is exceptionally rich in energy and mineral resources:

Energy Resources

Petroleum: Estimated resources of 23 billion tons, accounting for 22% of China's onshore petroleum resources
Natural Gas: Estimated resources of 17.5 trillion cubic meters, accounting for 28% of China's onshore natural gas resources
Coal: Estimated resources of 2.19 trillion tons, accounting for 40% of China's estimated coal reserves

Renewable Energy

Wind Energy: Total reserves of 890 million kilowatts, accounting for 20% of China's total wind energy reserves, ranking second in the country
Solar Energy: Average annual solar radiation of 5,800 megajoules per square meter, ranking second in China for solar energy resources

Agricultural Advantages

Xinjiang boasts significant agricultural resources and production capabilities:

Land Resources: 106 million mu of cultivated land, 183 million mu of forest land, and 780 million mu of grassland (including the Xinjiang Production and Construction Corps), making it one of China's five major pastoral areas
Cotton Production: Accounts for 90.2% of China's total cotton output, with cotton area, unit yield, total production, and commercial volume ranking first in the country for 29 consecutive years

Tourism Resources

Xinjiang is endowed with rich tourism resources:

Scenic Spots: 640 national A-level scenic spots (including 17 5A-level spots)
Winter Tourism: Exceptional snow and ice resources with 101 ski resorts

Opening-Up Infrastructure

As China's western gateway, Xinjiang has developed significant infrastructure for opening-up:

Ports of Entry: 18 ports of entry (including 3 aviation ports)
Air Transportation: 25 airports with 286 international and domestic routes
Industrial Parks: 23 national-level industrial parks
Free Trade Zone: Newly approved China (Xinjiang) Free Trade Zone covering 179.66 square kilometers, encompassing three areas: Urumqi, Horgos, and Kashgar

Investment Attraction Policies

Xinjiang has established a comprehensive policy framework to attract and support investment, with regulations at the autonomous region level providing various incentives and support measures.

Key Policy Framework

Foreign Investment Environment Optimization (2024)

Several Measures of the Autonomous Region on Further Optimizing the Foreign Investment Environment and Increasing Foreign Investment Attraction
Document No.: Xin Zheng Ban Fa [2024] No. 9

Foreign Investment Stabilization (2021)

Notice on Issuing the Implementation Opinions on Stabilizing Foreign Investment in Xinjiang
Document No.: Xin Zheng Ban Fa [2021] No. 78

Foreign Trade and Investment Promotion (2022)

Several Measures on Promoting Stability and Quality Improvement in Foreign Trade and Stability and Optimization in Foreign Investment in the Autonomous Region
Document No.: Xin Zheng Ban Fa [2022] No. 44

Encouraged Foreign Investment Industries (2022)

Catalogue of Industries Encouraged for Foreign Investment (2022 Edition) - Xinjiang Section
Document No.: Order No. 52 of the National Development and Reform Commission and the Ministry of Commerce, 2022

Key Industries for Development

Xinjiang is focused on cultivating and strengthening characteristic advantageous industries, accelerating the creation of a modern industrial system supported by "eight major industrial clusters":

Energy and Resource Processing

Oil and Gas Production and Processing
Coal, Coal Power, and Coal Chemical Industry
Green Mining

Agricultural Products

Grain and Oil
Cotton and Textile Clothing
Green Organic Fruits and Vegetables
High-Quality Livestock Products

Strategic Emerging Industries

New Energy and New Materials Strategic Emerging Industrial Cluster

Xinjiang is actively developing new energy and new materials industries, leveraging its abundant renewable energy resources and mineral deposits to create a strategic emerging industrial cluster that complements its traditional energy and resource processing sectors.

Strategic Advantages for International Investors

Xinjiang offers unique advantages that make it an attractive destination for specific types of investment and business development:

Strategic Location: Bordering eight countries and serving as China's western gateway, Xinjiang offers unique access to Central Asian markets and is a key node on the Belt and Road Initiative.
Energy Resource Abundance: With significant reserves of oil, natural gas, coal, and renewable energy resources, Xinjiang presents exceptional opportunities in energy production, processing, and related industries.
Agricultural Leadership: As China's leading cotton producer and one of its major pastoral areas, Xinjiang offers advantages in agricultural processing, textile manufacturing, and livestock product development.
Tourism Potential: Rich in natural landscapes and cultural heritage with hundreds of national-level scenic spots and specialized winter tourism resources, Xinjiang presents opportunities in tourism development and related services.
Opening-Up Infrastructure: With 18 ports of entry, extensive air transportation networks, and 23 national-level industrial parks including the new Free Trade Zone, Xinjiang provides comprehensive infrastructure for international business operations.
Industrial Clustering: The focus on eight major industrial clusters creates opportunities for integration into established and developing value chains in energy, agriculture, and emerging sectors.
Policy Support: Multiple policies at the autonomous region level provide incentives and support for foreign investment, creating a favorable business environment.

Conclusion: Xinjiang as a Strategic Investment Destination

Xinjiang Uygur Autonomous Region represents a distinctive investment opportunity for businesses seeking to engage with China's westward opening-up strategy and the Belt and Road Initiative. As China's western gateway bordering eight countries, Xinjiang combines strategic location advantages, exceptional resource abundance, and focused industrial development with targeted investment policies.

The region's emphasis on eight major industrial clusters creates diverse opportunities across energy, mining, agriculture, and emerging sectors, with particular strengths in oil and gas processing, coal chemical industry, cotton and textile production, and new energy development.

With its positioning as an important node on the Belt and Road Initiative and the newly approved Free Trade Zone covering Urumqi, Horgos, and Kashgar, Xinjiang offers unique advantages for investors seeking opportunities in resource processing, specialized agriculture, and cross-border trade in China's rapidly developing western regions.

Ready to Explore Xinjiang's Opportunities?

Whether you're interested in energy resources, agricultural processing, textile manufacturing, or emerging industries, Xinjiang offers unique investment possibilities backed by supportive policies, abundant resources, and strategic location advantages as China's gateway to Central Asia and beyond.

Xinjiang Investment Guide: China's Western Gateway and Resource-Rich Frontier