Xinjiang, China’s largest northwestern region, has been strategically positioned to become a significant hub for both the Belt and Road Initiative (BRI) and China’s connectivity efforts with Central Asia, Europe and Pakistan. With its rich resources, advantageous geographical location and well-developed infrastructure, Xinjiang is increasingly playing a pivotal role in promoting regional trade, business and imports/exports, especially in facilitating the China-Pakistan Economic Corridor (CPEC) and connecting China with Europe.
Xinjiang is located at the crossroads of Asia, linking China with the Central Asian Republics and Pakistan. It is bordered by several countries, including Kazakhstan, Kyrgyzstan, Tajikistan and Pakistan, making it a vital bridge for China to access these neighbouring regions. As the gateway to China’s northwestern part, Xinjiang’s geographic positioning offers immense potential for trade, investment and logistics, which aligns perfectly with BRI. The region serves as an essential link between China and Central Asia, providing both land and rail connectivity to Europe.
Under the Belt and Road cooperation, China has been focusing on enhancing infrastructure, trade routes and connectivity across Asia, Europe and Africa. Xinjiang plays a central role in the development of these trade routes, particularly the China-Europe Railway Express and theCPEC.
One of the most significant projects linking China and Pakistan is the CPEC, a mega infrastructure initiative under the BRI that aims to connect the port of Gwadar in southern Pakistan with China’s Xinjiang region. Xinjiang, with its strategic location, is not only the starting point of CPEC but also an important component in facilitating the efficient movement of goods and services between the two countries.
The CPEC includes a network of roads, railways, pipelines and energy corridors that is enhancing trade, investment and connectivity. The region is poised to benefit from the development of infrastructure projects, such as the Khunjerab Pass, which connects Xinjiang with Pakistan’s Gilgit-Baltistan region. This direct land route helps reduce transportation time and costs for goods traveling between China and Pakistan, opening up vast opportunities for trade and export.
The Xinjiang-Pakistan connectivity is important for Pakistan as it allows the country to bypass traditional maritime trade routes and access the vast Chinese market more efficiently. The strong trade relationships established through CPEC are already seeing an increase in Chinese imports and exports to Pakistan, particularly in sectors such as machinery, electronics, textiles, and agriculture. In return, Pakistan exports goods like textiles, rice, and other agricultural products to China, reinforcing the economic interdependence between the two nations. Xinjiang is also a vital gateway for China to connect with Central Asian countries. These countries are collaborating with China for infrastructure development, trade, and investment, and Xinjiang serves as the conduit for these economic exchanges.
Through Xinjiang, China has established several road and rail links to Central Asia, facilitating the seamless movement of goods and services across the region. The Horgos port, located in Xinjiang, serves as a central land port for both Chinese and Central Asian trade. As part of the BRI, Horgos is the largest dry port in the world and plays a key role in facilitating the trade of goods between China and Central Asia. The port has seen an exponential increase in container traffic, with goods ranging from machinery to electronics being shipped to Central Asia and beyond.
Xinjiang’s role as a regional trade hub, along with the development of infrastructure, has been important in integrating Central Asia into the global economy.In addition to its connections to Central Asia and Pakistan, Xinjiang plays a vital role in China’s trade with Europe. The BRI has prioritized the creation of an efficient land-based transport network, and Xinjiang has become a vital link in the China-Europe freight train network. This rail network facilitates the movement of goods from China to Europe and vice versa, offering an alternative to traditional maritime shipping.
Xinjiang’s land ports, such as the Alashankou Port and Horgos, play a significant role in facilitating these rail connections. These ports are crucial transit points for freight trains traveling between China and Europe, significantly reducing shipping time and costs. The China-Europe freight trains, which have gained in popularity over the years, run along the ancient Silk Road route and now connect over 227 cities and 25 European countriesaround the globe, including major hubs like Chengdu, Xi’an, and Urumqi in Xinjiang.
The growth of the China-Europe rail network has been particularly significant for businesses in both China and Europe. The faster shipping time compared to sea transport has enabled businesses to reduce lead times, thereby improving supply chain efficiency. Goods such as electronics, textiles, machinery and consumer products are transported via these trains, helping to promote trade between China and Europe.
Xinjiang’s logistical infrastructure has been a key enabler in expanding the BRI’s connectivity between China and Europe, making it easier for businesses to access new markets and expand their export potential. Its growing role as a trade hub and regional centre for connectivity has unlocked significant business and import-export opportunities. The region is rich in natural resources, such as oil, gas, and minerals, as well as agricultural products like cotton, fruits, and grains. These resources provide ample export opportunities for Xinjiang and create a conducive environment for industrial growth.
China has been investing heavily in Xinjiang’s industrial infrastructure, focusing on sectors like manufacturing, renewable energy, agriculture, and logistics. With the development of industrial parks, advanced manufacturing facilities, and trade hubs, the region has become a key destination for foreign direct investment (FDI). Its strategic proximity to Central Asia, South Asia, and Europe enhances its role as a trade and manufacturing hub, while expanding rail and road networks has opened new trade routes, boosting Xinjiang’s import-export activities.
Xinjiang’s growing infrastructure and strategic location make it a critical component of China’s Belt and Road Initiative (BRI) and an essential link in both the CPEC and China-Europe connectivity. The region’s increasing importance as a trade hub offers significant opportunities for business and trade, particularly through key infrastructure such as land ports and rail networks. With its expanding connectivity to Central Asia, Pakistan, and Europe, Xinjiang is poised to become a central player in global trade, supporting China’s ambitious economic goals.
The writer is a senior journalist, based in Beijing ([email protected])
