The recent Leaders’ Summit of the Asia Pacific Economic Cooperation (APEC) on November 15, 2023 marked a watershed moment in Asia-Pacific cooperation. China's proactive stance, advocating strengthened collaboration, effective management of differences, and comprehensive economic and social development, resonates globally. Simultaneously, the operation of the Xinjiang Pilot Free Trade Zone (FTZ) has become a focal point, sparking discussions about its potential impact on regional and bilateral economic partnerships.

The Xinjiang FTZ: A Strategic Nexus for Global Trade

Xinjiang, with its strategic location and economic potential, emerges as a key player in the broader Asia-Pacific landscape.

The colossal wave of infrastructure development in Xinjiang goes beyond economic facilitation. It's a cultural bridge. Modern transport networks, logistics hubs and communication systems aim to fortify Xinjiang's role as a bridge between East and West, fostering cultural ties through enhanced connectivity.

Within the Xinjiang FTZ, a comprehensive suite of trade facilitation measures has been implemented, creating a business-friendly environment. These measures aim not only to attract diverse industries and investors, but also to foster cross-cultural business interactions to create a dynamic ecosystem.

China's Call for Cooperation

China's call for cooperation finds expression in APEC, fostering dialogue, negotiation and consensus-building. The organization serves as a platform for managing differences and fostering an environment conducive to economic and social development within the Asia-Pacific region.

China's call for cooperation within the Asia-Pacific region invites coordinated development strategies among nations. This shared vision is crucial for aligning diverse development plans toward common goals, promoting shared prosperity, and achieving sustainable growth.

In the context of global economic dynamics, the meeting between Chinese President Xi Jinping and U.S. President Joe Biden holds significant implications for China-U.S. relations. The discourse between these two global powers has far-reaching consequences for international trade, security, and collaborative efforts to address global challenges.

Prospects of Xinjiang FTZ in Light of Asia-Pacific Cooperation

As the Xinjiang FTZ gains momentum, the prospects for it evolving into a hub for multilateral trade agreements become increasingly promising. This multilateral approach can lead to a more integrated and dynamic economic landscape, fostering deeper global trade relations.

The Xinjiang FTZ aligns with China's commitment to sustainable development. Initiatives, such as green infrastructure and renewable energy projects, underscore the commitment to balancing economic growth with environmental stewardship, contributing significantly to global sustainability goals.

China-Pakistan Economic and Trade Cooperation: Navigating Opportunities in Xinjiang

Photo shows Adnan Hameed in the 13th China Digital Publishing Expo Opening Ceremony & Main Conference. (Photo courtesy of Adnan Hameed) 

At 5,000 meters above sea level, Khunjerab Pass is a major trade route between China and Pakistan, and an important gateway to South Asia and Europe. China mainly imports textiles, agricultural products and daily commodities, and exports plants and herbs.

The collaboration between China and Pakistan within the Xinjiang FTZ draws on historical ties and a shared vision for economic development. As trusted partners, both nations envision a future where economic cooperation is the linchpin for regional stability and prosperity.

Xinjiang's strategic location holds particular significance for China-Pakistan economic and trade cooperation. Enhanced connectivity facilitated by Xinjiang paves the way for the exploration of new trade avenues and cultural exchanges, further strengthening ties between the two nations. Xinjiang's evolving infrastructure not only facilitates existing trade routes but also opens new avenues for collaboration, providing impetus to Belt and Road cooperation. According to Pakistan’s planning ministry, Gwadar smart port city’s contribution to Pakistan’s gross domestic product would rise $200 billion to $300 billion by 2050. It said that the per capita income of the citizens of Gwadar would be around $2,000 in 2025 and around $4,000 by 2035.

The Xinjiang FTZ presents a myriad of investment opportunities that can fuel the economic engines of both China and Pakistan. The ease of doing business within Xinjiang, coupled with supportive policies, creates an environment conducive to cross-border investments and joint ventures, fostering economic growth in both nations. The APEC platform, with its emphasis on effective management of differences, creates a conducive environment for economic partnerships, influencing the trajectory of China-Pakistan economic and trade cooperation.

Cultural, Business and Tourism Opportunities in Xinjiang

Beyond its economic implications, the Xinjiang FTZ has the potential to become a cultural hub. The convergence of diverse cultures in Xinjiang can lead to vibrant cultural exchanges, creating an environment where businesses can leverage diverse perspectives and consumer preferences for mutual benefit. During the last visit of Pakistan’s prime minister to Xinjiang, he acknowledged that China and Pakistan will jointly work to identify the respective strengths of “Gilgit-Baltistan and Xinjiang and build on our synergies for improving the livelihoods of the people of our region.”

The Xinjiang initiative opens avenues for cross-cultural business collaborations. As industries converge within the FTZ, businesses have the opportunity to tap into new markets, understand diverse consumer needs, and foster innovation through cultural exchange, creating a dynamic business landscape.

This is a soft power dimension that enriches the overall relationship, promoting mutual understanding and collaboration. Initiatives, such as cultural festivals, educational exchanges and tourism, can contribute to building a robust foundation for enduring ties between the people of Xinjiang and Pakistan.

The rich cultural tapestry of Xinjiang, combined with its scenic landscapes, presents vast tourism opportunities. As infrastructure developments make Xinjiang more accessible, tourism can become a significant economic driver, bringing people from different parts of the world to explore its cultural heritage and natural beauty, further enhancing global cultural exchange.

The Xinjiang FTZ stands at the crossroads of economic, cultural and geopolitical transformations, embodying the spirit of Asia-Pacific cooperation. Its strategic objectives align seamlessly with the vision set forth in the APEC meeting, emphasizing the importance of unity in managing differences for the collective benefit of the Asia-Pacific region. As Xinjiang emerges as a nexus for global trade, cultural exchange and tourism, the collaborative efforts within the region, coupled with the potential for strengthened China-Pakistan economic and trade cooperation, herald a new era of economic possibilities. The interconnectedness of these initiatives underscores the need for continued dialogue, cooperation and innovative solutions to address the challenges and seize the opportunities that lie ahead in the dynamic landscape of international relations and trade.

(Adnan Hameed is a Program and Media Officer at China Cultural Center in Pakistan.)

Planner : Jie Wenjin

Reviewers : Hou Weili and Cheng Li