The Xinjiang Production and Construction Corps (XPCC), established in 1954, assumes the duties of cultivating and guarding the frontier areas entrusted to it by the state. It is a special social organization, which handles its own administrative and judicial affairs within the reclamation areas under its administration, in accordance with the laws and regulations of the state and the Xinjiang Uygur Autonomous Region and with economic planning directly supervised by the state. It is subordinated to the dual leadership of the central government and the People's Government of the Xinjiang Uygur Autonomous Region. Also known as the China Xinjian Group, the XPCC has 14 divisions (reclamation areas), 174 regimental agricultural and stock breeding farms, 4,391 industrial, construction, transport and commercial enterprises, and well-run social undertakings covering scientific research, education, culture, health, sports, finance and insurance, as well as judiciary organs. The total population of the XPCC is 2,453,600,including 933,000 workers.
The XPCC was established against a special historical background. In 1949, Xinjiang was peacefully liberated. To consolidate border defense, accelerate Xinjiang's development, and reduce the economic burden on local governments and the local people of all ethnic groups, the People's Liberation Army units stationed in Xinjiang focused their efforts on production and construction, starting large-scale production and construction projects. By 1954, after making arduous pioneering and enterprising efforts, 34 farms and eight pastures had been constructed, with a total cultivated area of 77,200 ha. The farming and stockbreeding products gathered not only provided for the logistic needs of the troops stationed in Xinjiang, but the PLA units had also set up a number of modern industrial, mining and commercial enterprises, as well as schools, hospitals and other institutions.