Published by: THE WORLD UYGHUR NETWORK NEWS November 20, 1997

10/29/97, Beijing Xinhua Domestic Service, FBIS Translated Text

"Many Taiwan businessmen are eyeing Xinjiang's good location and are prepared to turn it into a base for opening up the Central Asian markets.

Urumqi, 29 Oct (Xinhua) -- Situated along the northwestern border of the motherland, the Xinjiang Uygur Autonomous Region has in recent years taken local realities into consideration and brought out its resource and locality superiority to promote trade and economic activities with Taiwan, resulting in constant personnel exchanges between the two regions and more and more Taiwan businessmen showing keen interest in investing in Xinjiang.

According to relevant personages, both sides are now exploring new ways to promote economic and trade activities between hinterland border provinces and regions and Taiwan business people. Rich in natural and human resources, possessing the longest border lines in the country, sharing frontiers with the most number of neighboring nations, and having 15 open foreign trade posts, Xinjiang is gradually qualifying itself as the door for opening China to the west.

In recent years, its economy has been playing an increasingly important role in national economic development. Currently, Xinjiang is leading the nation in cotton, beet sugar, watermelon, and hop production and the top rice-exporting area among the five northwestern provinces and regions.

With vigorous support being extended by the state toward social and economic development in the central and western regions, Taiwan investment in the mainland motherland is moving from coastal areas to the hinterland and border areas, with Xinjiang's unique advantages being gradually recognized by the vast number of Taiwan businessmen, with the emergence of "Xinjiang fever" on the island at one time. Seizing the opportunity, relevant departments in Xinjiang have stepped up efforts to promote Taiwan-related economic and trade activities,

with encouraging results. Restrained by such objective conditions like geography and market, there was hardly a Taiwan investment in Xinjiang five years ago.

Since the adoption of "transforming the superiority and resources" by the autonomous regional party committee and government, the pace of opening to the outside world has been accelerated. A series of preferential policies applicable to foreign investment and economic cooperation, including Taiwan businessmen, were enacted to positively encourage economic and trade exchanges between Xinjiang and Taiwan.

Tomato sauce, hops, Chinese herbs, and other Xinjiang products have entered the Taiwan market. According to incomplete statistics released by the autonomous region's Taiwan's Affairs Office, compared to 1992 when the first Taiwan-funded enterprise was incorporated in Xinjiang, there were over 110 such enterprises by the end of September, of which one-third were solely owned by Taiwan businessmen, with total investment hitting $190 million, involving such production fields as petrochemical, textile, building materials, agricultural development, and other production fields -- a basically rational investment mix.

Interviewed by this reporter, Xu Yulin, director of the autonomous region's Taiwan Affairs Office, who was back from a recent business trip to Taiwan, said that over 120,000 Taiwan tourists and business people visited Xinjiang annually in recent years, showing the close relationship between the two regions. As both Xinjiang and Taiwan businesspeople have a strong desire to cooperate, relevant departments in Xinjiang are forming a "Taiwan-Funded Enterprise Quality Promotion Association" to create a better investment environment for Taiwan

investors.

The Taiwan Affairs Office director, who has engaged in Taiwan affairs for nearly 20 years, is highly upbeat over economic cooperation between the two regions, maintaining that, at the outset, there will be broad prospects for agricultural cooperation as Taiwan has vast experience in quality cultivation and relatively ample capital, whereas Xinjiang is such a big region that there are 760 million mu of grasslands, including 160 million mu of cultivable idle land.

As labor resources in Xinjiang are relatively abundant, there is great potential in agricultural and animal husbandry development. Many large enterprises in Taiwan have shown a keen interest in agricultural cooperation projects, with over 40 enterprises completing their study tour of Xinjiang as a group.

Renowned enterprises in the island, including the United Group, have started processing industries in Xinjiang. The Jingxing Livestock Farm, a Taiwan investment in northern Xinjiang, has obtained relatively good returns in cotton planting and livestock rearing. Cantaloupe and other fruit planting experimental projects jointly carried out by agricultural and scientific departments of the two regions also scored success.

Secondly, relevant industrial systems based on Xinjiang's rich natural resources, including oil, natural gas, coal, iron, solar energy, and wing power, have taken shape following years of opening and construction. There are also good chances of cooperation in the petrolchemical, coal, and iron and steel lines. Besides, many Taiwan businessmen are eyeing Xinjiang's good location and are prepared to turn it into a base for opening up the Central Asian markets.