Riot-ravaged Xinjiang looks toward revival

• Source: Xinhua
• [17:39 July 22 2009]
• Comments

The riot would affect trade and economic exchange between Xinjiang and Central Asian countries because of foreign customers' safety concerns, said Wang Haiyan, a researcher at the Chinese Academy of Social Sciences of Xinjiang Uygur Autonomous Region.

However, it would have limited impact on the long-term trade and economic exchange between Xinjiang and Central Asian countries, Wang said. With the situation being stabilized, economic activities and trade should return to normal in Xinjiang soon.

As a major port for trade between China and neighboring Russia and Central Asian countries, Xinjiang reaped 22.2 billion U.S. dollars in foreign trade last year. It had set a target of 25-percent growth in 2009.

He Yiming, director of regional commerce department, said it was possible for Xinjiang to reach its trade target despite the global economic downturn and the riot.

"It's not easy, but we still have a chance to realize the foreign trade target of $27.8 billion this year," he said.

The tourism industry, which contributes 6 percent to 7 percent of Xinjiang's gross domestic product (GDP), has also been affected by the July 5 violence.

About 3,400 domestic and overseas tourist groups, comprising 200,000 travelers, had canceled tours to Xinjiang as of July 12, according to the tourism bureau of Xinjiang Uygur Autonomous Region.

Although not a major contributor to the regional GDP, the tourism industry was an important source for local residents to increase income, said Huang Pingchao, an official with regional bureau of commerce in Xinjiang.

To revive the industry, local tourism authority has sought a 5-million-yuan subsidy from the regional government to help travel agencies survive.

In addition, each traveler who visits Xinjiang before Aug. 31 would receive a 10-yuan subsidy per day, a move expected to attract 50,000 tourists during this period.

Despite the riot, investor confidence in Xinjiang's long-term economic development is not affected.

Multinational companies including the world's soft drink giant Coca Cola, Canada Fei Cui International Industrial Group Ltd. and retail giant Carrefour have all expressed confidence in the region's future.

"Coca-Cola still has a very optimistic outlook on Xinjiang's economy and consumer potential in the long term," said Chen Hongbing, general manager of the COFCO Coca-Cola Beverage (Xinjiang) Co., Ltd..

The Chinese government had responded quickly to restore order after the riot, he said. "The riot won't have any impact on our long-term marketing and investment here."

Thanks to decades of fast development, Xinjiang's economy has been on a fast track. Provincial GDP rose 14.8 percent annually on average from 1999 to 2007. It grew 11 percent last year from 2007 despite the adverse impacts of global financial crisis.

Nur Berkri, chairman of Xinjiang Uygur Autonomous Region, was confident that the regional economy would develop rapidly in the second half of this year. But he admitted the riot would add to the difficulties brought by the global financial crisis.

More measures would be taken to boost agricultural production, improve industrial output, stimulate private investment and expand consumers' demand in the second half, Berkri promised.