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Xinjiang Horgos Investment Guide

Updated:2018-3-29 16:19:31    Source:www.tannet-group.comViews:396

Horgos is a Chinese city near the border with Kazakhstan. It is located in the Ili Kazakh Autonomous Prefecture of Xinjiang Autonomous Region. The city of Khorgas, once a staging post on the ancient Silk Road, is becoming a strategic land port on the border with Kazakhstan.

In September 2011, the State Council issued Several Opinions on Supporting the Building of the Kashgar and Horgos Economic Development Zones, which clearly spelled out the relevant supporting policies and established Horgos' special position in the opening up of Xinjiang, and indeed China, to the outside world. Horgos was officially established as a city in September 2014 and combines the characteristics of a border area, a customs checkpoint, a commercial city and an international city. It is positioned as a gateway for international trade "linking the east and the west" and a bridgehead for opening up to the west.

A Logistics Hub for Trade with Central Asia
Horgos, the westernmost port of China, is an important trading port between China and Kazakhstan as well as a node for the opening up of Xinjiang and China as a whole to the Silk Road Economic Belt and other countries and regions. An increase in Chinese exports to Central Asia in the past few years has attracted many logistics service suppliers to set up business in Khorgas. Apart from local firms, there are also logistics companies from other provinces.

These serve not just local enterprises in Ili and Xinjiang but also provide transportation, customs clearance and other logistical support to traders and manufacturers outside the northwestern region in their exports to Central Asia. According to reports, the number of companies providing foreign-related warehousing and logistics services in this city has increased from 13 in 2013 to 49 at present. The number of international freight forwarding agents has also increased to 100.

The International Border Cooperation Centre: A Frontline for “Opening Up”
The China-Kazakhstan Horgos International Border Cooperation Centre (hereafter referred to as the Centre) is the main focus for implementing the development strategy of building an international trade corridor connecting east and west. As a bridgehead for “opening up” to the west, the Centre - a cross-border economic and trade zone and investment cooperation centre - is a joint project undertaken by China and Kazakhstan. Its aim is to promote economic development in the border areas and reinforce China's economic and trade ties with Central Asian countries such as Kazakhstan.

Located in an area straddling the China-Kazakhstan border, the Centre has a total area of 5.28 km2 and is managed in a closed way. The Chinese section has an area of 3.43 km2, while the Kazakh section has an area of 1.85 km2. It is mainly for trade negotiations, exhibition and sales of products, warehousing and transportation. It has hotels and commercial and financial facilities and hosts all types of economic and trade fairs. With trade liberalisation, goods, people and vehicles may move freely across the border here.

The Centre and its support zone effectively upgrade Horgos’ trading functions, including foreign trade, product display and sales, warehousing, transportation, tourism and other commercial services. They also provide a key trading centre for China, offering processing, manufacturing, regional sourcing, and transit and transport, for companies to target Central Asian markets. By promoting the export of Chinese goods to Central Asia and the import of goods from Central Asia and even Europe, they merit the attentions of Hong Kong companies interested in tapping business opportunities in Central Asia.

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