Xinjiang support package hailed by local residents

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Xinjiang support package hailed by local residents

09:37, May 22, 2010      

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China's support package for the far-west Xinjiang Uygur Autonomous Region unveiled Thursday has become a hot topic for residents of the region who hailed the strategic plans that help bring prosperity to their hometown.

Chinese President Hu Jintao said during a central work conference held in Beijing from Monday to Wednesday the region should undergo a spurt in development so that by 2015 its per capita gross domestic product reaches the national average.

Incomes and access to basic public services should reach the average level of the country's western regions, he said.

"I have noticed that 'People's livelihood' is mentioned several times in the package. The improvement of people's living standards can help ease social conflict and therefore ensure a more stable development environment," said Amiti Wushouer, an employee of the region's transport department.

A cab driver surnamed Zhang in the regional capital of Urumqi told Xinhua he was particularly interested in the part about the government relaxing policies about using natural gas in Xinjiang.

"This means the tensions concerning natural gas here will ease, and that's what we Xinjiang people have always wanted," said Zhang, who followed the news about the support plan on the radio.

Zhang Man, an experienced stock investor in Urumqi, was thrilled to see the shares of companies based in Xinjiang surge across the board Friday.

To boost development in the region, the government will cut taxes for some enterprises in the region, according to the package.

"The tax cuts are good news for listed Xinjiang companies and companies who have branches here, which will eventually benefit infrastructure construction and industries in the region," said Zhang Man.

According to the package, Xinjiang will be the first Chinese region to reform resource taxes.

The resource tax for oil and gas produced in Xinjiang will be levied based on price instead of quantity, effectively raising the revenue for the regional government.

"The resource tax reform will also help save energy and cut emissions," said Zhang Man.

"We must engage in vigorous economic development, accelerate the pace of development," said Chinese Premier Wen Jiabao, who also attended the meeting.

Wen said the fixed asset investment goal for Xinjiang in the government's next five-year plan starting in 2011 will be more than double the amount in the current plan that ends this year.

Banks will be encouraged to expand services in the region, he added.

"We feel this is a new starting point for Xinjiang, and we have to try our best to make the most of this great opportunity," said Hadeerbieke, deputy secretary-general of Altay Prefectural Party Committee in northern Xinjiang.

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