Doing Business in XPCC -- china.org.cn

I . Survey

(i) Geographical Location

Xinjiang Production and Construction Corps (XPCC for short), also called China Xinjian Group, is distributed within the boundaries of 67 counties of 13 prefectures in Xinjiang Uygur Autonomous Region. Xinjiang Uygur Autonomous Region is located in the northwestern part of China, 73°40’E -96°23’E, 34°25’N -49°10 ‘ N, with an area of 1,664,900 square kilometers, covering one sixth of China's total area. Xinjiang is situated in the hinterland of Eurasia, bordering 8 countries from northeast to southwest, namely, Mongolia, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, Afghanistan, Pakistan and India, with a border line of 5,600 kilometers. It is a region with the longest border line and the largest number of ports opening to the outside world in China. Once an important channel along the ancient Silk Road, it is now the second bridgehead of "Eurasian continental railway".

(ii) Climate

Xinjiang has a temperate continental climate, with long and severely cold winter, short and burning hot summer, greatly variable spring and autumn. Annual average temperature in South Xinjiang is 10℃, that in Junggar Basin, North Xinjiang, 5.0 -7. 5℃, that in Altay and Tacheng 2 . 5 -5.0℃. Xinjiang is an arid area , withinsufficientand uneven distributed precipitation of 150-200 millimeters in North Xinjiang and less than 1 0 0 millimeters in South Xinjiang.

In winter, it is often snowy in Xinjiang . In the plains i n North Xinjiang , thereis always snow with a depth of 20-30 centimeters, maximum 80 centimeters ; about 1 0 centimeters in South Xinjiang. In South Xinjiang, the frost-free period is 180-220 days, that in North Xinjiang is 140-185 days.

(iii) Population and Nationalities

At the end of 2005, XPCC had a total population of 2.5698 million, including an urban population of 673,400, farm population in farming and animal husbandry regiment of 1.8964 million, respectively covering 26.2% and 73.8% of the total population.

XPCC is a place where 38 nationalities gather, including Han, Uygur, Kazak, Hui, Mongolian, Sibo, Tadjik, Russian, Uzbek, Tatar and Manchu. At the end of 2005, XPCC Han population was 2.2573 million, that of Uygur 178,700, that of Kazak 43,100, that of Hui 65,200, that of Mongolian 6,500, that of other nationalities 18,900.

(iv) Infrastructure and Transportation

Aviation

Xinjiang has now 12 civil airports, 127 airlines including 82 domestic airlines and 45 international airlines, with an air route in use of 119,500 kilometers, forming an airline network structure with Urumqi Airport as regional hub and becoming international gateway in the western part of China. Xinjiang General Aviation Company under the jurisdiction of XPCC has 35 airplanes, mainly used in agricultural production, resisting against natural calamities and rushing to deal with emergencies.

Railways

North Xinjiang Railway, South Xinjiang Railway and Lanzhou-Xinjiang Railway pass through the entire area. With a business mileage of 2,925 kilometers, Xinjiang has greatly improved its railway transportation ability.

Highways

With a traffic mileage of 89,500 kilometers (including 31,700 kilometers under jurisdiction of XPCC), Xinjiang has formed a highway traffic transportation network consisting of Turpan-Urumgi- Dahuang High-grade Highway and Urumqi- Kuytun Expressway with Urumqi as center. 7 national highways function as primary skeleton, linking Gansu and Qinghai provinces in the east, various countries in Central Asia and West Asia in the west, Tibet in the south, and 68 provincial highways, which link prefectures and cities, counties (regiment farms) and townships (companies).

In 2005, XPCC had 251,830 vehicles of various kinds including 62,689 civil vehicles, 27,770 transport business vehicles, 41,665 employees engaged in transportation completed 76 graded passenger stations, 1 graded freight terminal and 4 logistic centers, with XPCC North Urumqi Logistic Center as an important part of Urumqi highway hub. There are 29 independent accounting transportation enterprises including 3 with foreign transportation management qualification. Xinjiang Passenger Transportation Group Company includes 12 passenger transportation enterprises, with class 2 qualification of national passenger transportation enterprise.

Telecommunication and Internet

Xinjiang has rapidly developed data communication network and multi-media network, completed ATM broadband networks covering various prefectures, divisions and cities, carried out construction of IP broadband network and metropolitan area network, initially formed an integrated modernized communication system consisting of stored program controlled switching, opticalfiberc ommunication, digital microwave, satellite communication and mobile communication. At the end of 2005, the entire region had 6.122 million fixed telephone users, 5.313 million mobile telephone users and 1.0578 million Internet users.

Finance

Xinjiang has hadsteady operation of finance. In 2005, it had a deposit balance of 35.817 billion Yuan, including enterprise deposit of 7.725 billion Yuan, residents�� saving deposit of 18.014 billion Yuan. Agriculture Bank of China XPCC Branch network is mainly distributed in cities such as Urumqi, Shihezi, Korla, Aksu, Kashi, Yining and Wujiaqu, and XPCC divisions and their farming and animal husbandry regiment farms. This branch administers 1 business office, 2 secondary branches, 7 directly affi liated subbranches, 24 county-level sub-branches and 264 basic business networks.

Insurance

Xinjiang has steadily expanded its insurance market. It now has 1,313 insurance organs at various levels, inc luding 3 7 subsidiary companies with their business spreading in 25 provinces, municipalities and autonomous regions. In 2005, the insurance business realized an income of 10.542 billion Yuan.

(v) International Fairs

Since 2002, XPCC Bureau of Commerce and Mechanical and Electrical Department of the Ministry of Commerce of People��s Republic of China jointly held China Mechanical and Electrical Products Exposition and China Commodity Trade Fair and Asia Commodity Trade Fair in Kazakhstan in succession. Asia Commodity Trade Fair is the largest fair for trade and investment in various countries in Central Asia and West Asia. Successful fairs have much influence in Central Asia, and have become an important platform for enterprises of China and Kazakhstan as well as peripheral Central Asian countries to carry out economic and trade cooperation and exchanges.

(vi) Higher Education and Scientifi c Research

In 2005, XPCC had 3 regular higher educational institutions, including 2 undergraduate universities and 1 college, 1 polytechnic, 1 independent school run by a regular university, 4 doctorate stations, 58 mastership stations. It has now 29,000 enrolled undergraduate students, 13,000 current PhD/MS students, 2,341 full-time regular university teachers.

School Survey:

Index	School quantity	Enrolled students quantity	Newly enrolled students	Teachers and employees	Full-time teachers	Graduated students
In total	6	42,949	14,779	4,961	2,893	12,817
Regular colleges and universities	4	30,663	9,428	4,023	2,341	6,136
Adult colleges and universities	2	12,286	5,351	938	552	668

XPCC Scientific Research

By 2005, XPCC had had 126,400 technical personnels of various professions, 5,383 personnels engaged in scientific and technologicals activities. XPCC and its divisions have 17 independent scientific research institutions, 15 technology development organizations of large and medium-sized industrial enterprises. XPCC has formed a contingent of scientists with strong research, development, application and promotion abilities.

At present, XPCC has 7 key labs jointly established by province and ministry, 6 post-doctorate workstations, 2 state recognized technology centers of enterprise, 1 state-level agricultural scientific and technological garden, 3 XPCClevel agricultural scientific and technological gardens, 12 experiment and demonstration centers of various kinds.

Since 1978, XPCC has obtained 1,317 state-level, province and ministry level (including XPCC level) scientific and technological rewards (items/times), including 5 achievements, including�� China Merino (Xinjiang Corps Cultivation type) breeding system��, ��Polyethylene mulching film and mulching planting technology��, Development, making and promotion of mulching film cotton planting machinery��, obtaining fi rst Prize of National Science & Technology Advance (see attached table). In 2005, contribution ratio of advance of science and technology to XPCC agriculture reached 51%.

Awarded Achievement	Date and Level	Achieving Orgnization
Japonica rice heterosis utilization research	China Science Congress Prize in 1978	Xinjiang Agricultural Cultivation Bureau
Sugar beet fine variety�� Shitian No.1��	China Science Congress Prize in 1978	Shihezi Agricultural Science Institute
Breeding and improvement of Xinjiang fine fleece sheep for fleece and mutton	China Science Congress Prize in 1978	Shihezi No. 151 Regiment
Breeding of Xinjiang budge sheep	China Science Congress Prize in 1978	Shihezi No.150 Regiment
Improvement of heavy alkaline land	China Science Congress Prize in 1978	Xinjiang Bayinguolin Prefecture No.29 Regiment
Breeding of new variety of China merino	First Prize of National Science & Technology Advance Prize in 1987	Ziniquan Sheep Research Institute
Polyethylene mulching film and mulching planting technology	First Prize of National Science & Technology Advance Prize in 1987	XPCC
Imine method entire cotton stick papermaking technology	First Prize of National Spark Science & Technology Prize in 1988	No.147 Regiment of Agricultural No.8 Division of XPCC
Sheep cestodiasis prevention and control research	Third Prize of National Science & Technology Advance Prize in 1989	Xinjiang Agricultural Science Academy Husbandry Research Institute
Sheep Sperm Freeze technology study and promotion	Third Prize of National Science & Technology Advance Prize in 1989	Xinjiang Agricultural Science Academy Husbandry Research Institute
China Merino (Xinjiang Corps Cultivation type) breeding system	First Prize of National Science & Technology Advance Prize in 1991	Xinjiang Agricultural Science Academy Husbandry Research Institute
Research, making and promotion of mulching fi lm cotton planting machinery	First Prize of National Science & Technology Advance Prize in 1995	Agriculture Bureau of XPCC
Breeding selection of Altai fi ne fl eece sheep for mutton	Third Prize of National Science & Technology Advance Prize in 1996	Xinjiang Agricultural Science Academy Husbandry Research Institute
Liquid ammonia fertilization technology study and promotion	Third Prize of National Science & Technology Advance Prize in 1997	Agriculture Bureau of Agricultural No.8 Division of XPCC
Research and promotion of pipeless submersible pump	Third Prize of National Science & Technology Advance Prize in 1998	No.121 Regiment of No.8 Division of XPCC
Comprehensive prevention and curing research on popular severe sheep parasitic disease	Third Prize of National Science & Technology Advance Prize in 1999	Xinjiang Agricultural Science Academy Husbandry Research Institute
Research and demonstration of cotton under-fi lm drop irrigation comprehensive matching technology	Second Prize of National Science & Technology Advance Prize in 2004	Water Conservancy Bureau of XPCC Xinjiang Agricultural Science Academy

(vii) Tourism

Xinjiang is rich in natural and artificial tourist resources. According to resource classification of�� Criterion of General Investigation of Tourism Resources in China��, Xinjiang has 56 of China��s 68 kinds of tourist resources, ranking first in China. Xinjiang has unusual natural landscapes, with icy peaks and fire land coexistence, desert and oasis neighboring, rough natural views, unique landscape combination. The ancient Silk Road scenic spots and historic resorts, colorful ethical elegance and cultural arts attract numerous domestic and international tourists.

At the Central Entertainment Square of Shihezi Cith of Xinjiang, there is a series of sculptures, named No.1 Plough of XPCC. Dating back to 1950��s, the fi rst generation of XPCC, answering the call of CPC, decided to settle in Xinjiang, station troops to guard the frontier and cultivate the frontier areas, successfully turning the wilds into fertile land. In order to remember this history, the No.1 Plough of XPCC Sculptures series were established, which now becomes a renowned tourism site together with Sculpture of General Wangzhen and Sculpture of New Rhythm of Frontier Life.

North Lake Park

North Lake, 18 km away in the north of the Shihezi, is a bright pearl on Manasi River, which combines functions of tourism destination, aquatic breeding and irrigation as well. North Lake is located at the spring spill belt of alluvial fan of Tianshan��s north foot with ravine crisscrossing and the mouths of springs clustering around. Therefore, it was formerly called�� Great Spring ravine��. The current North Lake covers a wide water area of 11 km2 with blue waves rippling and boats dotting on the surface of the lake. Sweethearts walk along the causeway with weeping willow on the lakefront. The North Lake lives dozens of waterfowls such as swan and wide goose, as well as different kinds of fishes, shrimps and mussels. The North Lake, also known as�� south of the Changjiang River in the desert��occupies an area of 21 km2 with more than 20 scenic spots such as rockwork, Lansheng pavilion and Xiaoyao pavilion.

II . Economy

(i) GDP Data

In 2005, XPCC realized a total output value of 33.112 billion Yuan including an output value of primary industry of 13.064 billion Yuan, that of secondary industry of 8.335 billion Yuan, that of tertiary industry of 11.713 billion Yuan with the proportion of the three industries as 40:25:35, per capita total output value as 12,900 Yuan.

(ii) Natural Resources

Land Resources XPCC has a total acreage of 7.45627 million hectares, including land for agricultural use of 4.19264 million hectares, land for construction use of 0.20989 million hectares, unused land of 3.05374 million hectares. Land for agricultural use includes: farmland of 0.10465 million hectares, garden plot of 0.06358 million hectares, woodland of 0.14216 million hectares, pastures of 2.4269 million hectares, other land for agricultural use of 0.21935 million hectares.

Mineral Resources

Xinjiang has minerals of complete types and large reserves, broad development prospect. Out of the 171 known kinds of minerals in China, Xinjiang has discovered 138 kinds with verified resource reserves of 117 kinds, including 5 kinds of reserves ranking fi rst in China, 24 kinds in the first five places in China, 43 kinds in the first ten places in China, 23 kinds ranking first in the northwest. Xinjiang has rich reserves of petroleum, natural gas, coal, gold, chromium, copper, nickel, rare metals, salt minerals, bentonite, building materials and nonmetallic materials. According to forecast, Xinjiang has forecast coal stock size of 2.19 trillion billion tons, covering 40% of the total amount in China, ranking fi rst; that of oil 20.86 billion tons, covering 30% of the total land oil stock size in China, that of natural gas 10.3 trillion cubic meters, covering 34% of the total land natural gas stock size, and other famous resources since ancient times such as gold, gem and jade.

Water Resources

Xinjiang has annual surface water resources (utilization of surface water) of 8.9 billion cubic meters, exploitable ground water resources of 5.2 billion cubic meters, an effective irrigated area of 1 million hectares, and water-saving area of 53.9 hectares. By the end of 2005, XPCC had 114 reservoirs with a total storage capacity of 3.163 billion cubic meters, including 11 large-scale reservoirs with a storage capacity of 1.876 billion cubic meters, 27 mediumsized reservoirs with a storage capacity of 1.109 billion cubic meters, 76 small reservoirs with a storage capacity of 216 million cubic meters, irrigation canals with a total length of 99,400 kilometers including 26,700 kilometers under penetration protection, drainage channel with a total length of 42,600 kilometers, 102,400 channel buildings of various kinds, 10,600 electromechanical pump wells including 10,200 with support facilities and with a water furnishing ability of 299.03 cubic meters per second, a water lifting quantity of 1.45 billion cubic meters, 115 locations of 10,000-mu irrigation areas including 7 locations of 500,000-mu irrigation areas, 11 locations of 20,000-30,000-hectare irrigation areas. It has embankment with a total length of 2,107 kilometers, a population of 1.44 million under protection, farmland with an area of 0.3678 million hectares under protection. It constructed 90 sluices on the river including 3 large-scale sluices, 26 mediumsized sluices and 61 small sluices. XPCC has a total irrigated area of 1.17112 million hectares, water conservancy projects with an annual water supply of 13.06 billion cubic meters, including 11.755 billion cubic meters for agricultural water supply, 70 million cubic meters for industrial water supply, 148 million cubic meters for urban and rural domestic water and 87 million cubic meters for ecologic use.

Biological Resources

Situated at the communications center of Eurasia with combination of East and West animal and plant varieties, and diverse and unique physical geographic conditions, Xinjiang is extremely rich in biological resources.

Xinjiang has complete temperate zone crops, with wheat, corn, paddy rice as main crops. In most areas it is suitable to plant miscellaneous grains such as sorghum, barley, soybean, pea, mung bean, broad bean, millet, millet and sweet potato. The Ili River valley is always known as�� Xinjiang granary��.

��Tianshan snow�� rice is as clean as pearl bead, with fine texture and fragrant taste. Economic crops include cotton, beet, rape, sunflower, hops, aspic, flax, tobacco and medicinal materials. XPCC�� upland cotton, long-staple cotton and color cotton kapok, beet, oil-bearing crops, hops and ketchup ranking first in both output and quality in China��s agricultural cultivation, cotton yield of per unit area and per capita occupancy ranking fi rst in China.

Xinjiang is known as�� home-town of fruits and melons��. The common fruits and melons include: melon (Hami melon), watermelon, apple, bergamot pear, grape, apricot, peach, plum, red jujube, pomegranate, cherry, fig, walnut and almond, vegetable crops are quite rich, including cabbage, spinach, coriander, wild cabbage, yellow radish, green radish, potato, spring onions, kidney bean, tomato, onion, red pepper, eggplant, celery, Chinese chive, cucumber, bottle gourd, balsam pear, pumpkin, sponge gourd, wax gourd. Various temperate zone fruits, vegetables and melons can be seen everywhere.

Xinjiang is one of the five big pastoral areas with many animals with sheep ranking first in quantity, followed by horse, cattle, goat, donkey, camel, mule, pig and deer, fowls including chicken, duck and goose, Ili horse, Yiwu horse, Yanqi horse, Balikun horse, Shihezi land reclamation fine-wool sheep, Altay fatrumped sheep, Xinjiang brown cattle, Kuqa black budge sheep, and ili dairy and beef cattle quite famous. XPCC meat output ranks fi rst in output in China��s agricultural cultivation.

Xinjiang has 90 kinds of fish, including quite precious Buluntuo Lake and Erqis River sturgeon, salmon, River perch, Silver prussian carp, siberian roach, Pikeperch, Gold Crucian Carp, Leuciscus idus, Burbot, European bream, and loving Buluntuo Lake and Erqis River River perch, Culter, Bositeng Lake pipefi sh, Barbless carp, Ili River Carp and Perch.

In terms of wild plants, there are edible, medicinal, technical, sandfixation and appreciation plants of 132 species, 856 families, nearly 4,000 kinds, including over 1,000 kinds of economic and medicinal plants, over 100 kinds of rare plants, such as liquorice, Fritillary Bulb, Safflower, Snow Lotus, Desertliving Cistanche, Dwarf Lilyturf Tuber , Chinese Angelica, Tangshen Root, Chinese Asafoetida, Desertliving Cistanche, gentian, Ephedra Herb, Barbary Wolfberry Fruit and medlar. Xinjiang Uygur Autonomous Region has its licorice ranking first in terms of both area and yield in China��XPCC has a licorice area of 26,700 hectares.

Furthermore, Xinjiang has diversiformleaved poplar, narrow-leaved oleaster, wild apple, wild walnut, wild apricot, wild almond tree, wild Chinese hawthorn, shiny-leaved yellow-horn, wild rose, bluish dogbane, rubber grass, reed, splendid achnatherum and sacsaoul grass. Xinjiang��s diversiformleaved poplar area covers 95% that in China. XPCC administers a diversiform -leaved poplar area of 40,000 hectares.

Xinjiang has 580 kinds of wild animals including over 340 kinds of birds, over 130 kinds of mammals with over 80 kinds listed as rare animals under national protection. 20 kinds are of fi rst category animals under national protection, mainly including wild horse, wild yak, wild camel, Tibetan wild ass, Mongolian wild ass, Xinjiang tiger, snow leopard, Tibetan antelope, saiga, beaver, wolverine, white stork, black stork, white crane, black-necked crane, whiteshouldered vulture, spot-billed pelican, Tibetan snow cock, peregrine falcon and Horned Grebe .

Xinjiang has 67 kinds of animals under national second category protection, mainly including brown bear, sable, lynx, red deer, ibex, swan, jade belt sea vulture. In addition, there are many common wild animals such as Bositeng Lake and Tarim riverside muskrat, oasis and desert hare, Tianshan and Altay pasture marmot, Mongolian gazelle, wolf, fox, Huocheng Horsfield��s tortoise including red deer, muskrat, snow cock and mink, which are successfully tamed and reproduced in XPCC reclamation area and becoming important materials to earn foreign exchange through export.

(iii) Animal Husbandry Development

XPCC has agriculture as its economic foundation and superiority, and agricultural modernization take lead in China. With farmland of 1.05 million hectares, sown area of 0.98 million hectares, gardening production area of 140,000 hectares. XPCC is China��s most important high quality cotton production center and biggest watersaving agricultural irrigation area, with a cotton output of 0.987 million tons, covering one sixth of China��s total cotton, export covering a half of China��s total cotton export. XPCC has its Jin Brand, Yinli Brand and Beijiang Brand cotton rank the first three places among China��s top ten brands, Xinnong Brand among the top ten best sellers at China��s cotton market. XPCC has had its cotton, grape, tomato, bergamot pear, red deer, dairy products and feed form specialized production, processing and industrialized production management, processing tomato productivity reach 600,000 tons ranking second in the same trade in the world and the products sell well in more than 40 countries and regions. grape wine productivity reached 120,000 tons, with alcohol brewing grape planting area of 150,000 mu ranking first in China and Asia. Its 6 pillar industries, namely, cotton industry, grain, oil and sugar processing industry, fruits and vegetables processing industry, livestock products, alcohol industry and seed industry rapidly developed.

In 2005, XPCC had a total agricultural output value of 27.352 billion Yuan, and continued to adjust crop planting structure. It had a sown area of 985,800 hectares, including grain sown area of 228,000 hectares, cotton sown area of 471,700 hectares, oil sown area of 46,500 hectares, beet sown area of 20,500 hectares. The output of main agricultural products such as grain, cotton, beet and fruits greatly increased, with cotton output creating a historical new record.

Main Agricultural Products Output:

Product Name	Absolute Number
Cereals	143.48
Wheat	65.78
Corn	46.28
Bean	5.00
Oil plants	9.53
Rapeseed	2.77
Sunflower seed	6.27
Cotton	98.68
Sugar beet	130.85
Fruit	45.90
Vegetables	284.52

Artificial afforestation area of 21,800 hectares completed, including 9,700 hectares returning land for farming to forestry.

Amount of livestock on hand at the end of the year: 7.8318 million, main livestock products such as meat, wool and milk with a comprehensive output increase.

Aquatic products output in 2005: 20,000 tons. Total power of agriculture machinery in 2005: 2.493 million KW.

Husbandry Production:

Unit: 10,000 pieces, 10,000 tons

Index	Number
Amount of livestock on hand at the end of the year	783.18
Cattle	42.38
Pig	88.13
Sheep	644.56
Amount of slaughtered livestock	569.44
Total meat output	22.89
Wool output	1.39
Poultry and egg output	3.79
Milk output	25.84

Agricultural Mechanization:

Index	Number
Large and intermediate agricultural tractor	2.12 pieces
Small tractor	3.43 pieces
Agricultural irrigation and drainage machinery	2.07 pieces
Farm electric power consumption	16.01 billion kWh
Effective irrigation area	1,164.5 million hectares

Animal Husbandry Center

High quality commodity cotton production center

XPCC��s various reclamation areas useable for cotton production have a typical temperate zone continental climate, long sunshine time, rich light resources, dry nature and few rainfall , centralized precipitation, which benefi ts growth of thermophilic crops such as cotton. For half a century, developing cotton through science and technology, XPCC has successively created a breakthrough of cotton planting forbidden area of latitude 44 N, and made miracles of large area high production of cotton in the Manas River basin; developed over 30 improved seeds such as Junmian 1, long-staple cotton Junhai 1, Xinluzao 1, summarized�� short, dense, drought and membrane�� comprehensiveand complete high yield technology, introduced and successfully promoted miracles of mechanical cotton picking technology, had cotton output covering one sixth of China��s total cotton, export covering a half of China�� s total cotton export, with first class cotton rate of above 85%. XPCC is China��s most important high quality commodity cotton production center.

Important grain and oil production center

XPCC adopts advanced precision agriculture planting technology, vigorously develops high quality special-purpose wheat, high quality paddy rice and oil-bearing crops and enhances market competitive force. It has its products such as�� Tianshan Snow��,��Yihe Double Six�� rice��, Dali��, Saimolin��, ��Chengmian��,�� Qiaoerma�� Teyi flour, ��Lingyangmai��,�� Jintun�� and cooking oil obtaining green food authentication.

Important livestock product center

XPCC has rapidly developed its animal husbandry and made it an important part of agricultural economy, constructed high quality livestock product center with high quality dairy cattle center, beef cattle center, mutton sheep center, fi ne-wool sheep center and red deer center as main and cultivated international leading fine-wool sheep new variety-China��s Merino sheep.

Licorice production center With a total area of more than 300,000 mu, including more than 60,000 mu for man-power planting, this center has formed industrialized production with licorice slice and licorice extract as main products.

Breeding of better stocks and characteristic fruits and melons

Breeding of better stocks

XPCC has vigorously selected breeds, introduced crop varieties including more than 700 from abroad, and more than 120 self-cultivated varieties. XPCC has constructed 2 state-level better stock breeding centers, 11 high quality better stock cotton breeding centers with a seedselecting working rate of 95% or more. Improved seed selective breeding has greatly promoted XPCC agricultural economic development.

The 3 enterprises of XPCC, namely, Xinjiang Kangdi Agricultural Science & Technology Development CO. Ltd., Tianhe Seeding Co. Ltd. and Jinbo Seeding Center, have become among China��s top 50 seeding enterprises.

Characteristic fruits and melons

Xinjiang is always praised as hometown of fruits and melons. XPCC�� has its centers of high quality characteristic fruits and melons spread north and south Tianshan. XPCC Agricultural No.2 Division has had its�� Elliman�� brand Korla bergamot pear win Gold Medal of the Second Agricultural Exposition, Famous Brand Product of China International Agriculture Exposition, China Green Food Kunming Exposition Best-selling Product Award, and obtain China Green Product Reasoning; No.143 Regiment of Agricultural No.8 Division has been appointed as�� hometown of flat peaches�� by organizational committee of recommendation and publicity activities of China Special Product Economic Commission and China Special Product Hometown, No.83 Regiment of Agricultural No.5 Division has been appointed by Economic Forestry Society of State Forestry Administration as�� hometown of Medlar��, Agricultural No.13 Division has been appointed by Economic Forestry Society of State Forestry Administration as�� hometown of China��s famous, excellent and special economic forests��.

Agricultural Industrialization

XPCC has 29 leading agricultural industrialized enterprises including 8 state-level enterprises.

Fast-rising red industry. Chalkis Tomato Product Co., Ltd. is a state-level leading agriculture industrialized enterprise with a tomato sown area of 36,300 hectares and an annual output of 2.69 million tons. XPCC has tomato products of more than 30 varieties and an annual ketchup and its product productivity of 600,000 tons, export covering 50% of China��s total export amount, has formed an industrial chain with vat ketchup as initial product, tomato cubes, peeled entire tomato, small package tomato products as middle product, lycopene and other products with high added value as terminal. XPCC has had its products passed 7 authentications, namely, ISO9002, ISO14001 and HACCP, Judaism, European Food Organization, non-transgene variety authentication and Islamic food authentication. The products sell well in more than 70 countries and regions.

Vigorously developing brewing industry. Xinjiang is one of the high quality grape production areas in the world. Relying on the superior climatic characteristics of rich heat resources, long sunshine time, big diurnal amplitude and small precipitation north and south of Tianshan Mountains, XPCC vigorously develops grape planting and brewing center.

Suntime International Wine Co., Ltd. is a state-level leading agriculture industrialized enterprise, the largest monomer wine plant in Asia, with 6 wine plants and an annual high quality grape wine productivity of 120,000 tons, a daily filling ability of 200 tons, with its products selling well at domestic and international markets, constructed a 150,000-mu high quality winemaking grape center, the largest in Asia. Suntime series grape wine has obtained green food certificate and qualification of National Products Exempt from Inspection from National Green Food Development Center, in 2005 obtained China famous brand product certificate from General Administration of Quality Supervision, Inspection and Quarantine, won multiple gold and silver medals at the second, fourth and sixth international grape wine and liquor appraisal meeting and at Asian grape wine quality contest respectively.

Xinjiang Yilite Industry Co. Ltd. is a state-level leading agriculture industrialized enterprise, mainly producing Yili Tequ Liquor, Yili Lao Jiao Liquor, Yili Brand Liquor and other products of more than 100 varieties, in 9 series. The products sell well in many foreign countries such as Australia, Commonwealth of Independent States, Japan and Republic of Korea.�� Yili�� trademark has been evaluated by Administration for Industry & Commerce of People��s Republic of China as�� China famous trademark�� and the company has become among China��s top ten liquor enterprises.

China��s largest�� Tiancai�� color cotton production center; In 2005, it had an ordering purchase area of 70,000 mu. Forming agricultural industrialized scale, ��rainbow�� color cotton holds an important share at the international and domestic raw material market, and product varieties are complete.

XPCC has the center for production, processing, scientifi c research, international trade and breeding of hops, melons and vegetables of improved varieties, which has become the largest fragrant hops export center in China. The center enterprise has established hops planting, melon and vegetable breeding centers in 12 farming and animal husbandry regiments, 21 organs in south and north Xinjiang through methods such as order entrust production, land tenancy production and buying shares with land, with a hops planting area of 20,000 mu and an annual average hops processing capacity of 3,000 tons. Hops sell to Japan, Germany and other countries, melon and vegetable improved varieties sell to US, Holland, Japan, Republic of Korea, Chile and other countries.

XPCC dairy industry has formed an industrial structure of farmer plus center plus market, Yinqiao International (Kuytun, Xinjiang) Dairy Co., Ltd. has its first period construction scale as 300 t/d fresh milk processing, mainly produces full cream evaporated milk powder, full cream sweetened milk powder and formula milk powder.

(iv) Industrial Development

Having its industry take agricultural and subsidiary product processing as main body, energy and basic industry as matching, XPCC has constructed a resource-based industry structure system with textile, food, papermaking, leather, steel, electric power, coal, building materials, chemicals, machinebuilding and electronics as backbone, adapting to practical situation of Xinjiang and XPCC. In 2005, XPCC had an industrial added value of 5.65 billion Yuan, a gross value of industrial output of 17.564 billion Yuan including light industrial output value of 9.293 billion Yuan, heavy industry output value of 8.271 billion Yuan, realized an industrial sales output value of 16.89 billion Yuan, industrial product sales rate of 96.2%.

Chemical industry

XPCC enterprises fully used their rich mineral resources in Xinjiang such as coal, salt and limestone according to circular economic type constructed a new type industrial garden with an annual production of 360,000 tons of polyvinyl chlorides, 280,000 tons of caustic soda, 200,000-kilowatt matching self-supply power plant, 300,000 tons of calcium carbide, 300,000 tons of cement, and formed an interior organic circulation within the group from mineral resources to chemical products, from chemical products to watersaving equipment, from water-saving equipment to highly effective ecological agriculture.

XPCC has had its agricultural watersaving equipment production reach an annual capacity of 6 million mu, with its technical level, scale of production and market taking lead in the world.

Textile industry

XPCC has 0.95 million cotton textile spindles (ring spindle) with its products exported to various places in the world.

Electric power industry

In 2005, XPCC had an electric-power output of 3.609 billion kWh. Its Xinjiang Tianfu Thermoelectric Co., Ltd. is the first listed company of combined thermal power generation in the Northwest, with a total installed capacity of 263.55 megawatts, an annual electric-power output of 1.7 billion kWh, electricity supply capacity of 1.7 billion kWh, heat supply capacity of 10 million GJ, 31 110-kilovolt and 35-kilovolt transformer substations, 480-kilometer 110 kilovolt transmission lines, 440-kilometer 35 kilovolt transmission lines, a power supply radius of 150 kilometers, a heating radius of 8 kilometers, a heating area of 7 million square meters.

Architectural industry

In 2005, XPCC had an added value of architectural industry of 2.685 billion Yuan, a total output value of construction enterprise architecture industry of 9.858 billion yuan, a staff technical equipment rate of 5,928 yuan/person, a labor productivity of 89,748 yuan/person, a power equipment rate of 3.99 kilowatts/person.

XPCC possesses a 400,000 t/a coke center.

(v) Commercial Development

Foreign trade According to the customs, in 2005, XPCC had a total import and export amount of 3.105 billion US dollars with the increase ranking first in China. XPCC has already conducted trade with 135 countries and regions with over 3,000 varieties of import-export goods. XPCC has now 690 various enterprises with foreign trade rights. Various divisions and private enterprises rapidly increase their import and export trade, which is a bright attraction in the development of foreign trade. Foreign trade is growing in a proper way. XPCC has now 10 enterprises with an annual import and export amount of 100 million US dollars, 40 with an annual import and export amount of 10 million US dollars. Foreign trade enterprise sales income and total profit maintain a growth of two digits. 6 enterprises have successively become among China��s top 500 importexport enterprises.

Foreign capital introduction

In 2006, XPCC approved 17 foreign capital projects, had a contract foreign capital amount of 55 . 46 million US dollars, actually used a foreign capital of 43 million US dollars, three types of foreign-funded enterprises had an import and export amount over 13 million US dollars. The investment involved in textile, food, light industry and agriculture.

Foreign economic and technical cooperation

In 2005 , XPCC had its foreign contract projects complete a turnover of 29.19 million US dollars, and sent out 603 service personnel under foreign contracting projects, month-end number of service personnel abroad as 426. XPCC has had a foreign investment accumulative authorized amount of 15.30 million US dollars. XPCC has had its enterprises gain success in Cuba and Mexico in investment construction for agricultural comprehensive development project, making project countries �� demonstration project. XPCC has had its enterprises gain outstanding achievements in Algeria, Kyrgyzstan, Pakistan, Mongolia and The United Arab Emirates in housing, roads, hydroelectric power stations and post - disaster reconstruction . XPCC has its enterprises seek for agricultural comprehensive development in Volgograd State, Russia.

Circulation of commodities

Domestic trade in 2005, XPCC had social consumable total volume of retail sales of 9.338 billion Yuan, wholesale and retail sales trade retail turnover of 7.303 billion Yuan, food and beverage retail turnover of 1.242 billion Yuan, annual entire social commodity purchase total amount of 35.824 billion Yuan, commodity total sales of 36.931 billion Yuan including above quota wholesale and retail trade commodity purchase total amount of 28.258 billion Yuan, commodity total sales of 28.82 billion Yuan. The consumption structure unceasingly improves, expenditure diverse tendency is obvious.

Construction of commodity market system

XPCC has formed commodity trade and exchange market system with comprehensive market as main, specialized market as auxiliary. XPCC has now 232 commodity markets of various kinds, including 190 comprehensive free markets of agricultural products, 28 industrial consumable markets, 7 vegetable and agricultural and subsidiary product wholesale markets, 7 markets of other kinds, 11 commodity trade markets each with an annual wholesale amount of over 100 million yuan. Department stores, supermarkets, large-scale comprehensive supermarkets, shopping centers and stores in a storehouse, specialized shops and groceries, and other commercial facilities develop in good order.

III . Investment

(i)Policy and Administrative Rules

Catalogue of Related Laws :

Foreign Trade Law of the People��s Republic of China

Customs Law of the People��s Republic of China

Law of the People��s Republic of China on Import and Export Commodity Inspection

Law of the People��s Republic of China on Chinese-Foreign Equity Joint Ventures

Law of the People��s Republic of China on Chinese-Foreign Contractual Joint Ventures

Law of the People��s Republic of China on Foreign-Capital Enterprises

Company Law of the People��s Republic of China��

Law of the People��s Republic of China on the Entry and Exit Animal and Plant Quarantine

Law of the People��s Republic of China on Control of the Entry and Exit of Aliens

Law of the People��s Republic of China on the Control of the Exit and Entry of Citizens

Securities Law of the People��s Republic of China

Income Tax Law of the People��s Republic of China for Enterprises with Foreign Investment and Foreign Enterprises

Individual Income Tax Law of the People��s Republic of China

Law of the People��s Republic of China on the Administration of Tax Collection

Environmental Protection Law of the People��s Republic of China

Law of the People��s Republic of China on Evaluation of Environmental Effects

Law of the People��s Republic of China on Promotion of Cleaner Production

Law of the People��s Republic of China on Prevention and Control of Desertifi cation

Marine Environment Protection Law of the People��s Republic of China

Law of the People��s Republic of China on the Prevention and Control of Atmospheric Pollution

Law of the People��s Republic of China on Prevention and Control of Environmental Pollution by Solid Waste

Law of the People��s Republic of China on Prevention and Control of Water Pollution

Law of the People��s Republic of China on Prevention and Control of Environmental Noise Pollution

Law of the People��s Republic of China on Prevention and Control of Radioactive Pollution

Frontier Health and Quarantine Law of the People��s Republic of China

Labour Law of the People��s Republic of China

Trade Union Law of the People��s Republic of China

Searching Website for the Related Laws:

1 . Searching System of Laws and Regulations of China (website of National People��s Congress of China)

http://law.npc.gov.cn:87/home/begin1. cbs

2. China Legislative Information Network Systemhttp://www.chinalaw.gov.cn/jsp/jalor/ index.jsp

3. Ministry of Commerce http://www.mofcom.gov.cn The above-mentioned websites are for reference only.

Industries encouraged for investment:

1. High quality tomato and medlar planting and fi ne processing;

2. Returning land for farming to forestry and grass, natural forest protection and other national key ecological engineering follow-up industrial development;

3. Development and application of water-saving irrigation technology;

4. Beet sugar processing and sideline product comprehensive utilization;

5. Natural spices and edible fungus planting and processing;

6. High quality wine-making grape center construction and high quality grape wine brewing;

7. Cotton seeds, sunfl ower, saffl ower fat fi ne processing;

8. Flax planting and product production;

9. High-grade cotton wool product upgrading transformation;

10. Copper, lead, zinc, nickel and other non-ferrous metal ore exploration and development;

11. Vermiculites, soda nitrate, mica, asbestos, bentonite and other non-metallic mineral comprehensive utilization;

12. Coal processing application technology development and product production;

13. High-grade leather product manufacture;

14. Ethylene downstream fi ne processing product and fi ne chemical product production;

15. Natural gas downstream chemical industrial product production and development;

16. Uygur ethical characteristic medicinal plant processing and drug manufacture new technology development;

17. Development and application of biological drugs with cattle and sheep internal organs as raw materials;

18. Ethical special required products, arts and crafts, packing vessel material and daily use glass product production;

19. Urban gas and heat supply, water supply and draining pipeline construction and management (in case of big or media-sized city, the Chinese party holds stock);

20. Scenic spots (attractions) development and matching facility construction, protection and management;

21. Highway passenger transportation.

(ii) Procedure of setting up enterprise

Condition for setting:

To set up a foreign investment enterprise, it is necessary to submit the following materials:

1. Report of application for establishment of foreign investment enterprise;

2. Approval document of foreign investment project;

3. Contract and rules of foreign investment enterprise;

4. Name list of foreign investment enterprise legal representative (or candidates of board of directors);

5. Appointment letter and resume of member of board of directors of the enterprise to be established;

6. Foreign investor��s legal documents (business license and ID) and credit certifi cation;

7. Name prior approval registration;

8. List of materials and equipment to be imported;

9. Workshop rent or purchase contract;

10. List of equipment and materials to be imported by the enterprise;

11. Environmental protection appraisal certifi cate;

12. Other supplement materials required by examination and approval authorities.

(iii) Residential environment

Entry-Exit rules:

If a foreigner enters China, he must apply to China��s diplomatic representative institution, consul institution or other institutions stationed abroad authorized by the Ministry of Foreign Affairs for entry visa. The foreigner holding invitation letter from China��s domestic authorized organization, and ordinary passport issued by a country with diplomatic relation or offi cial trade with China, because of the following matters: temporarily invited by the Chinese party to trade fair, to participate in the bid or official economic and trade contract signing, to supervise loading for export, import commodity inspection or participate in contract approval according to agreement, participate in equipment installation or project emergency repair, requested by the Chinese party to solve claim problem, to provide technical consultation and other reasons making him have to come to China without time to apply to the above Chinese institutions for entry visa, may apply to port visa institution authorized by the Ministry of Public Security for entry visa.

If a foreigner holding connected international flights and having his seat confirmed to take an international flight to transit directly from China, he can stay at the transit city for not more than 24 hours, and does not need to apply for transit visa if he does not leave the airport, and needs to apply to the frontier inspection station for temporary stay permit if he intends to leave the airport.

In case that a foreigner leaves China, he must submit effective passport or other valid identifi cations for examination, as well as visa or residence credential permitting his stay in China.

Work and residence permission

In case that an employer hires a foreigner, the employer must apply for employment permission for the foreigner, the employer is not allowed to hire the foreigner until the foreigner is approved and obtains ��People��s Republic of China Foreigner to Get Employed Permission Certificate��. A foreigner employed in Xinjiang should enter China holding occupation visa (in case of agreement on mutual exemption of visa, observe the agreement), and should not be employed in Xinjiang until he obtains ��Foreigner Work Permit�� and foreigner residence credential. Any foreigner without residence credential (i.e. F, L, C or G visa holder), studying in Xinjiang, cadet or occupation visa holder��s retinue family members should not get employed in Xinjiang.

A foreigner conforming to any of the following conditions may be exempted from applying for employment permission and work permit: (1) foreign specialized technical and management personnel directly engaged and funded by our government, or by state organs and institutions, with senior technical title or special skill credentials confirmed by his country or international authoritative technical management organ or professional association, and foreigner with certifi cate of foreign experts issued by State Administration of Foreign Experts Affairs; (2) Foreigners conducting business literary performance in Xinjiang holding�� license for temporary business performances�� and approved by the Ministry of Culture, China.

A foreigner conforming to any of the following conditions may be exempted from applying for employment permission, and directly apply for work permit with occupation visa and related certificates after entry: (1) engaged to work in China according to agreement between Chinese and foreign governments, international organizations, to carry out Chinese-foreign cooperation or exchange project; (2) Chief representative or representative of China offi ce of a foreign enterprise.

In case that a foreigner gets employed in Xinjiang, he must meet the following requirements: (1) 18 years old, healthy; (2) with specialized skill and corresponding experience; (3) Clearance; (4) with specifi c employer; (5) with effective passport or other international travel credential which can substitute passport.

In case that a foreigner travels, does business or works in Xinjiang and applies for visa, he must provide: (1) effective passport and copy; (2) evidentiary materials related with visa application; (3) fi ll in�� Visa and Residence Permit Application Form��, provide a 2-inch half-length positive bareheaded photo.

In case that a foreigner travels, does business or works in Xinjiang and applies for residence permission, he must provide: (1) effective passport and copy ; ( 2 ) evidentiary materials related with residence permission application; (3) fill in�� Visa and Residence Permit Application Form��, provide a 2-inch half-length positive bareheaded photo; (4) medical certificate; (5) Foreigner work permit or foreign expert certificate or approved document from the Ministry of Culture, Department of Culture of the Autonomous Region for performance and official letter from the employer; (6) students in China must provide official letter indicating study term and�� Admission Notice�� from the college or university.

A foreigner making investment in Xinjiang or conducting economic, scientifi c and technological, and cultural cooperation with enterprises and undertakings in Xinjiang, and needing to stay for a long time in Xinjiang for any other reasons according to Chinese law, can get 1-5-year permanent residence qualification credential from the public security organ, and can get permanent residence qualifications credential from the public security organ if he has made outstanding achievements.

A foreigner settling down in Xinjiang must provide the local police station with residence permit for examination once a year at a designated time.

Urban living environment

XPCC has very good social order and exquisite residential environment, has its urbanization rate increased from 32% in 2000 to 40.8% in 2005, had a per capita public green space area of 6.2 square meters, running water diffusion rate of 92%, industrial waste emissions qualification rate of 61%, industry redundant water rate of 65% in 2005. Exquisite Shihezi is national park city and China excellent comprehensively managed city, has obtained UN Human Habitat Model Award, with an afforested coverage of 40%, and other cities with an afforested coverage of 32%.

Xinjiang has constructed 28 nature reserves of various kinds, including 8 state-level nature reserves (respectively as Kanas, Peak Pobeda, West Tianshan, Tarim diversiform-leaved poplar, Swan Lake in Bayinbuluke, Ganjiahu saxoul forest, Lop Nor wild camel and Mt. Altun), with a total area of 218,300 square kilometers, covering 13 . 1 % of the total area of Xinjiang, 8 authorized state-level ecological demonstration zones with a total area of 127,600 square kilometers, 2 state-level ecological function reserves with an area of 180,900 square kilometers.

Medical Care

XPCC has now 673 medical institutions of various levels, 24,332 medical personnel of various professions including 225 hospitals with 16,654 beds, 80 third-class disease prevention and control institutions and 20 sanitary supervision organs.

Driving license

According to�� Law of the People��s Republic of China on Road Traffi c Safety�� and�� Regulations for Vehicle Driving License Application and Use�� and other related law and regulations, the traffi c control department of the public security organ releases vehicle driving license to foreigners working in embassies and consulates to China and international organization offices in China upon applied according to diplomatic principle of reciprocity. Foreigners should apply for vehicle driving license in the place of residence.

In case that a foreigner holding overseas vehicle driving license applies for vehicle driving license, he must fill in�� Vehicle Driving License Application Form�� and submit the following certifi cates: (1) applicant��s identification; (2) physical condition provided by a medical institution at county level or above; (3) vehicle driving license held. In case that the certifi cates are not written in Chinese, it is necessary to submit Chinese translation. In case that foreigners working in embassies and consulates to China and international organization offices in China holding overseas vehicle driving license apply for vehicle driving license, they must fill in�� Vehicle Driving License Application Form�� and submit the following certifi cates: (1) applicant��s identification; (2) vehicle driving license held. In case that the certificates are not written in Chinese, it is necessary to submit Chinese translation.

In case that a foreigner holding overseas vehicle driving license applies for vehicle driving license, he should take a test of subject 1, and subject 3 if he applies for a license driving large passenger bus, trailer, minibus or heavy lorry. In case a foreigner of temporary entry intends to drive any vehicle, he must apply to his initial entry or original vehicles control department of the public security organ for temporary driving license of the People��s Republic of China.

(iv)Reference Prices of Basic Elements

Price list of water and electricity in some cities:

City	Power supply (Yuan/kWh)		Water supply (Yuan/m3)
City	Industry	Business	Industry	Business	Life
Alaer	0.28-0.4 (within 5 years after production)	0.75	0.98	1.50	0.90
Wujiaqu City	0.172-0.46	0.667-0.677	2.6	2.6-6	1
Shihezi Development Zone	average 0.3338	0��819	1.78	3.

City	Price level	Executive	Manufacturing	Construction	Textile	Transportation	Meal	Property management
Shihezi City	High price	1,600-6,600	1,000-2,000	900-2,450	960-1,250	700-2,200	700-2,300	1,000-1,600
	Intermediate price	900-3,500	820-1,460	800-1,800	810-1,000	630-2,000	600-1,500	880-1,300
	Low price	600-2,100	610-920	680-980	590-900	560-1,800	560-860	760-1,000
Wujiaqu City	High price	1,300-3,400	800-950	900-1,500	��	��	700-1,530	920
	Intermediate price	880-2,010	630-750	800-1,200	750-800	600-830	600-1,200	600-850
	Low price	640-1,500	540-650	640-880	680-700	530-700	530-830	530-750

IV . Development Zones

(i) State-level development Zone - Shihezi Economic Development Zone

Established with the approval from the People��s Government of Xinjiang Uygur Autonomous Region in 1992, established as a state-level development zone with the approval from the State Council in 2000, Shihezi Economic Development Zone is an important zone supported by the autonomous region and XPCC, hosting many famous brand enterprises such as Taiwan Master Kong instant food, Tingjin Drinks, Bingxin Paper, Wang Wang Food, Wahaha drink, Xiongfeng Cotton Textile, Hisun Weaving, Jiangsu Yurun Meat Products, Xinjiang Tianye Group. It is one of the development zones developing at the highest speed, attracting the largest amount of foreign capital, gathering the largest group of famous domestic and international enterprises in Xinjiang.

In 2005, this zone had a total output value of 2.05 billion yuan; in-place funds through foreign investment promotion and capital attraction of 2 billion yuan. At present this zone hosts 550 domestic and international enterprises including 60 key industrial enterprises, each of which has an annual production of 5 million yuan or more, 17 enterprises of which has an annual productivity of over 100 million Yuan, 24 enterprises of which has an annual productivity of over 10 million yuan, initially forming an industrial group with high interrelatedness and strong matching ability.

In the new development, Shihezi Development Zone will depend on resource superiorities, vigorously expand and develop the four important industries of cotton textile, green food, modern agricultural equipment and heavy chemicals, develop new & high-tech industry and high added value service industry, build itself into a technologically advanced environmentally fi ne comprehensive industrial zone.

(ii) Newly Built Cities

Shihezi City

Established in February 1950, with a total area of 7,529 square kilometers, a total population of 569,600, Shihezi City has an urban area of 460 square kilometers, an urban population of 250,000. During the past 56 years, Shihezi Reclamation Area has become a new type oasis taking the modernized agriculture as foundation, the light industry as main body, combination of industry and agriculture, urban area and rural area, comprehensive operation of agriculture, industry, commerce, trade and garment, coordinated development of science, technology, education, culture, health and sports. Premier Zhou Enlai Memorial Hall, Army Wasteland Reclamation Museum and Ai Qing Poetry Hall have made it famous land reclamation city. Shihezi City has transport facilities, advanced communication, with Eurasia continent bridge and No.312 National Highway crossing from it respectively in the north and south. In the 21st century, Shihezi City will keep its great reputation, and make more achievements in various circles.

Alaer City

Located at the source of the Tarim River, intersection of juncture of the Hotan River, the Yeerqiang River and the Aksu River, on the south foot of Tianshan Mountain, with an urban area of 4,196 square kilometers, constructed urban area of 33 square kilometers, and a total population of 240,000, Alaer is especially famous for cotton with an annual production of ginned cotton of 230,000 tons, long-staple cotton export amount covering 70% of the total amount of China, hosts the 3 listed companies of Xinjiang Tarim Agricultural Comprehensive Development Co., Ltd., Xinjiang Qingsong Building Materials and Chemicals (Group) Co., Ltd. and Xinjiang Tarim River Seeding Co., Ltd., China��s only long-staple cotton breeding center and agricultural science research institute, and China��s largest long-staple cotton production center as well as transformation and valueadding demonstration center of Xinjiang characteristic agricultural and subsidiary products.

City positioning: cotton textile city, agricultural and subsidiary product production and processing collection and distribution city, green ecological sightseeing city, wasteland reclamation cultural city, South Xinjiang petrochemical processing city.

Tumshuq City

Located at the northwestern edge of Tarim Basin, Xinjiang, with a total area of 1,901 square kilometers, an urban planned area of 92.7 square kilometers, a total population of 150,000. It has now a cultivated area of 1,100,000 mu, land resources to be used of 750,000 mu, rich primary diversiform-leaved poplar forests, Xinjiang poplar, natural pastures, wild licorice, bluish dogbane and bitter bean of 1,200,000 mu of very high economic development value.

Tumshuq City has the largest plain reservoir in the Northwest , namely, Xiaohaizi Reservoir, and Yonganba Reservoir with a storage capacity of 700 million cubic meters, useable water surface of 155 square kilometers. Tumshuq City borders Kyrgyzstan, Tajikistan, Uzbekistan, Pakistan and Afghanistan, has 4 first or second category trading ports, Kashi International Airport, South Xinjiang Railway, No.314 National Highway and other channels, enjoying transport facilities. Key industrial development orientation: cottontextile, food, building materials, electric power energy, tourism and other industries.

Wujiaqu City

Located at northern suburbs of Urumqi City, borders Changji City, Miquan City, Fukang City, with an urban area of 710 square kilometers and a population of 116,000. It has now a cultivated area of 2,580,000 mu, pastures of 5,490,000 mu, forest land of 300,000 mu, waters of 410,000 mu, 17 reservoirs or lakes, adoptable ground water amount of 540 million cubic meters.

Wujiaqu City has a bright mineral resource development prospect, 15 coal mines with a total reserve of 295 million tons, out of which the coal and coke center of Dahuangshan Coal Mine has an annual coal and coke production of 3 million tons and 700,000 tons respectively, salt pond geological reserve of 9,828,000 tons, mirabilite reserves of 2.62 million tons, pyrophyllite reserve of 1.5 million tons, and other minerals such as chromite, quartz sand and pearlite. It has Qingeda Lake Scenic Spot, Xiaxing Lake, Fengqi Lake, Aquatic Paradise and other tourist resources, with lake and mountain scenery complementing wild animals and plants and forming unique oasis scenery.

(iii) Related Organs Entry-Exit management organs (including port management organs)

[Urumqi Customs ] Entry-exit supervision and administration organ of the state established in Xinjiang, has 11 customs in Xinjiang such as Alashankou Customs, Kashi Customs, Horgos Customs, Tuergate Customs, Kunjirap Customs and Yining Customs.

[Xinjiang Entry-Exit Inspection and Quarantine Bureau] comprehensively undertakes Xinjiang entry-exit quarantine, quarantine of animals and plants, commodity inspection, appraisal, authentication and supervision management has 14 inspection and quarantine branch offi ces in Xinjiang.

[Xinjiang Public Security Frontier Detachment] administers 12 frontier inspection stations and 12 frontier brigades, observes national entry-exit law and regulations and implements the following responsibilities: 1. Conductfrontier inspection of entry-exit personnel and their articles of luggage, transportation tools and shipped cargo. 2. Carry out supervision over entry-exit transportation tools according to relevant national stipulations. 3. Carry out security for defi ned port area, maintain entryexit order. 4. Carry out other responsibilities entrusted by competent departments and stipulated by rules and regulations.

[Port Office of Xinjiang Uygur Autonomous Region] permanent organ of the port leading group of the autonomous region, specifically responsible for port comprehensive coordination and supervision of the autonomous region. [Port Transportation Administration Office of Xinjiang Uygur Autonomous Region] established in March 1990, a department-level organ under Communications Department of the Autonomous Region, works together with Highway Transport Administration of the Autonomous Region, has set up port transportation management station in various open ports specially responsible for port entry-exit motor transport on-spot organization, supervision and management.

(Ministry of Commerce)