(i) Geographical Location

Xinjiang Production and Construction Corps (XPCC for short), also called China Xinjian Group, is distributed within the boundaries of 67 counties of 13 prefectures in Xinjiang Uygur Autonomous Region. Xinjiang Uygur Autonomous Region is located in the northwestern part of China, 73°40’E -96°23’E, 34°25’N -49°10 ‘ N , with an area of 1,664,900 square kilometers, covering one sixth of China’s total area. Xinjiang is situated in the hinterland of Eurasia, bordering 8 countries from northeast to southwest, namely, Mongolia, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, Afghanistan, Pakistan and India, with a border line of 5,600 kilometers. It is a region with the longest border line and the largest number of ports opening to the outside world in China. Once an important channel along the ancient Silk Road, it is now the second bridgehead of “Eurasian continental railway”.

(ii) Climate

Xinjiang has a temperate continental climate, with long and severely cold winter, short and burning hot summer, greatly variable spring and autumn. Annual average temperature in South Xinjiang is 10℃, that in Junggar Basin, North Xinjiang, 5.0 -7. 5℃, t hat i n A lt ay a nd Ta cheng 2 . 5 -5.0℃. Xinjiang is an arid area , withinsufficientand uneven distributed precipitation of 150-200 millimeters in North Xinjiang and less than 1 0 0 millimeters in South Xinjiang.

In winter, it is often snowy in Xinjiang . In the plains i n North Xinjiang , thereis always snow with a depth of 20-30 centimeters, maximum 80 centimeters ; about 1 0 centimeters in South Xinjiang. In South Xinjiang, the frost-free period is 180-220 days, that in North Xinjiang is 140-185 days.

(iii) Population and Nationalities At the end of 2005, XPCC had a total population of 2.5698 million, including an urban population of 673,400, farm population in farming and animal husbandry regiment of 1.8964 million, respectively covering 26.2% and 73.8% of the total population.

XPCC is a place where 38 nationalities gather, including Han, Uygur, Kazak, Hui, Mongolian, Sibo, Tadjik, Russian, Uzbek, Tatar and Manchu. At the end of 2005, XPCC Han population was 2.2573 million, that of Uygur 178,700, that of Kazak 43,100, that of Hui 65,200, that of Mongolian 6,500, that of other nationalities 18,900.

(iv) Infrastructure and Transportation

Aviation

Xinjiang has now 12 civil airports, 127 airlines including 82 domestic airlines and 45 international airlines, with an air route in use of 119,500 kilometers, forming an airline network structure with Urumqi Airport as regional hub and becoming international gateway in the western part of China. Xinjiang General Aviation Company under the jurisdiction of XPCC has 35 airplanes, mainly used in agricultural production, resisting against natural calamities and rushing to deal with emergencies.

Railways

North Xinjiang Railway, South Xinjiang Railway and Lanzhou-Xinjiang Railway pass through the entire area. With a business mileage of 2,925 kilometers, Xinjiang has greatly improved its railway transportation ability.

Highways

With a traffic mileage of 89,500 kilometers (including 31,700 kilometers under jurisdiction of XPCC), Xinjiang has formed a highway traffic transportation network consisting of Turpan-Urumgi- Dahuang High-grade Highway and Urumqi- Kuytun Expressway with Urumqi as center. 7 national highways function as primary skeleton, linking Gansu and Qinghai provinces in the east, various countries in Central Asia and West Asia in the west, Tibet in the south, and 68 provincial highways, which link prefectures and cities, counties (regiment farms) and townships (companies).

In 2005, XPCC had 251,830 vehicles of various kinds including 62,689 civil vehicles, 27,770 transport business vehicles, 41,665 employees engaged in transportation completed 76 graded passenger stations, 1 graded freight terminal and 4 logistic centers, with XPCC North Urumqi Logistic Center as an important part of Urumqi highway hub. There are 29 independent accounting transportation enterprises including 3 with foreign transportation management qualification. Xinjiang Passenger Transportation Group Company includes 12 passenger transportation enterprises, with class 2 qualification of national passenger transportation enterprise.

Telecommunication and Internet

Xinjiang has rapidly developed data communication network and multi-media network, completed ATM broadband networks covering various prefectures, divisions and cities, carried out construction of IP broadband network and metropolitan area network, initially formed an integrated modernized communication system consisting of stored program controlled switching, opticalfiberc ommunication, digital microwave, satellite communication and mobile communication. At the end of 2005, the entire region had 6.122 million fixed telephone users, 5.313 million mobile telephone users and 1.0578 million Internet users.

Finance

Xinjiang has hadsteady operation of finance. In 2005, it had a deposit balance of 35.817 billion Yuan, including enterprise deposit of 7.725 billion Yuan, residents’ saving deposit of 18.014 billion Yuan. Agriculture Bank of China XPCC Branch network is mainly distributed in cities such as Urumqi, Shihezi, Korla, Aksu, Kashi, Yining and Wujiaqu, and XPCC divisions and their farming and animal husbandry regiment farms. This branch administers 1 business office, 2 secondary branches, 7 directly affi liated subbranches, 24 county-level sub-branches and 264 basic business networks.

Insurance

Xinjiang has steadily expanded its insurance market. It now has 1,313 insurance organs at various levels, inc luding 3 7 subsidiary companies with their business spreading in 25 provinces, municipalities and autonomous regions. In 2005, the insurance business realized an income of 10.542 billion Yuan.

(v) International Fairs

Since 2002, XPCC Bureau of Commerce and Mechanical and Electrical Department of the Ministry of Commerce of People’s Republic of China jointly held China Mechanical and Electrical Products Exposition and China Commodity Trade Fair and Asia Commodity Trade Fair in Kazakhstan in succession. Asia Commodity Trade Fair is the largest fair for trade and investment in various countries in Central Asia and West Asia. Successful fairs have much influence in Central Asia, and have become an important platform for enterprises of China and Kazakhstan as well as peripheral Central Asian countries to carry out economic and trade cooperation and exchanges.

(vi) Higher Education and

Scientifi c Research In 2005, XPCC had 3 regular higher educational institutions, including 2 undergraduate universities and 1 college, 1 polytechnic, 1 independent school run by a regular university, 4 doctorate stations, 58 mastership stations. It has now 29,000 enrolled undergraduate students, 13,000 current PhD/MS students, 2,341 full-time regular university teachers.

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