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Support for new economic zones in Xinjiang
Date:2011/10/9      View:1576
The State Council, or China's Cabinet, announced plans to use subsidies and tax incentives yesterday to support the construction of two new economic development zones in the Xinjiang Uygur Autonomous Region.

According to guidelines released on the central government's website, the State Council will provide subsidies and tax preferences to facilitate the construction of the Kashgar and Korgas economic development zones in western and southern Xinjiang.

The central government will work to develop the zones into new sources of economic growth in Xinjiang. The government envisions the cities of Kashgar and Yining as regional economic hubs for central, southern and western Asian countries, as well as eastern Europe.

According to the guidelines, the central government will offer subsidies from 2011 to 2015, exempt qualified enterprises from business income tax for five years, subsidize fixed-asset investment and offer loans at discounted rates.

The government will also boost investment to construct major infrastructure in the two zones.
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