It is from this year that the Xinjiang Production and Construction Corps is expected to realize a historical leap from an “agricultural economy” to an “industrial economy.” On the 29th, the Xinjiang Uygur Autonomous Region announced a new resolution that claimed the region will enhance the promotion of new types of industrialization. Local fiscal departments will make the actual 2005 tax payment as a base, and return the excess balance to the Corps in the future.
The Xinjiang Production and Construction Corps carries the important historical mission of opening up uncultivated land and defending the border. At the beginning of the establishment of the Corps, most farms were established at the desert’s edge – short of water, roads, and electricity. In the 1970s, in order to accelerate local development, it handed over emerging industries to the local government. Undoubtedly, the Corps has made great contributions to the stability, and economic and social development of Xinjiang. However, its industrial base was relatively weak. In 2006, the industrial added value of the Corps only accounted for 18.2% of its GDP – about 21.1 percentage points lower than that of Xinjiang Uygur Autonomous Region.
Therefore, accelerating the construction of an industrialized Corps is the only way toward economic leaps and development, which is of great importance for new industrialization. To this end, the autonomous region decided to create unique conditions for the Corps. In addition to the introduction of preferential tax policies, it also decided to break the shackles of institutional and regional boundaries to support the Corps to in exploring oil, natural gas, coal, non-ferrous metals and other resources. Through joint efforts, the Corps will experience major economic structural changes in 8 to 10 years.