China-Kazakhstan free-trade center set to open
Zhao Shengnan, China Daily, Dec 3, 2011
YINING, Xinjiang -A planned China-Kazakhstan free-trade center along the border of the two countries will provide cross-border trade tariff exemptions for Chinese companies and allow for duty-free purchases for visitors, according to Chinese officials.
Vice-Premier Zhang Dejiang and his Kazakh counterpart Aset Isekeshev on Friday attended a launching ceremony for the Horgos International Border Cooperation Center, which is located near the village of Horgos in Xinjiang and is the first transnational free-trade cooperation center in central Asia.
The two officials also witnessed the connection of a railway linking the two countries.
The Chinese vice-premier said the center, which is expected to be completed in two years, will bring new opportunities to China and Kazakhstan.
Under an agreement signed between the two governments in September 2004, the center is to be a “free port” that will focus on trade and investment opportunities in industries including processing, manufacturing, trade, merchandise procurement, finance, tourism and entertainment.
The center, which rests on the China-Kazakhstan border and covers 3.43 square kilometers of land on the Chinese side and 1.85 sq km on the Kazakh side, will be a part of Horgos Port.
The commercial hub handled 3 million tons of cargo and received 550,000 inbound and outbound tourists in 2010.
According to Yang Jihong, a senior official of Horgos Port, upon its completion, Chinese companies will be exempt from cross-border trade tariffs and individuals visiting the center will be allowed to purchase up to 8,000 yuan ($1,237) in duty-free goods a day. In addition, visitors staying up to 30 days will be allowed visa-free entry into the center.
He added that a total of 880 million yuan has been spent so far on infrastructure construction on the Chinese side of the center.
Tuuerxun Yeermanhan, a 25-year-old Chinese merchant of Kazakh ethnicity, said he is considering purchasing stall space in the new center.
“The price will probably be high, but the opportunities far outweigh the cost,” he said.
Chinese Ambassador to Kazakhstan Zhou Li said the development of the center will definitely increase bilateral trade.
Thanks to the center and the improved railways, Horgos can be the hub and gateway connecting landlocked Kazakhstan to overseas markets, he said.
Favorable policies, such as those that brought about the center, will not only boost cross-border trade, but also diversify and deepen bilateral cooperation in the long run, said Zhang Yao, an expert on Central Asian studies from the Shanghai Institute for International Studies.
“In addition to the cross-border trade of daily commodities, both countries are seeking comprehensive cooperation in sectors including high-tech, energy and transportation,” he said.
China has been Kazakhstan’s second-largest trade partner since 2009 and its biggest export destination since 2010. Trade volume between the two countries increased from $1.29 billion in 2001 to $20.4 billion in 2010.
Qin Jize in Beijing contributed to this story.
China Daily
