A comprehensive bonded zone was opened in the border city of Kashgar in Xinjiang Uygur Autonomous Region on Monday.
With a total investment of 2.9 billion yuan (470 million U.S. dollars), the zone was approved by the State Council in September and passed a joint assessment led by the General Administration of Customs in January.
Covering 3.56 square km, the bonded zone enjoys geographic trade advantages thanks to its proximity to Kashgar International Airport and busy highways, as well as the China-Pakistan and China-Kyrgyzstan-Uzbekistan railways currently being planned.
Several areas have been set up to provide bonded warehousing, logistics and manufacturing. Support services such as customs clearance, air freight and exhibition halls are also available.
The bonded area has finalized investment agreements with 26 logistics and manufacturing companies, which have a combined registered capital of 400 million yuan, and is expected to create 500 jobs.
Bordering five Central Asian countries including Tajikistan, Kyrgyzstan and India, Kashgar boasts five national ports.
In March, China's top economic planner issued a plan at the 2015 annual conference of the Boao Forum for Asia, calling for Xinjiang to serve as "a key transportation, trade, logistics, culture, science and education center" and a "core area" on the Silk Road Economic Belt.
The Silk Road Economic Belt, proposed by President Xi in 2013, is an overland network focused on boosting international trade and cooperation on infrastructure projects with Central, South and West Asian countries.
President Xi began a state visit to Pakistan on Monday, his first trip to the South Asian country since he assumed the presidency in 2013. During the visit, China and Pakistan will sign deals on a wide range of issues, from energy and infrastructure to education and culture.
High on Xi's agenda are talks over the China-Pakistan Economic Corridor (CPEC), which is planned to connect Kashgar to the southwestern Pakistani port of Gwadar.
The CPEC will shorten China's oil and gas import routes from Africa and the Middle East by thousands of kilometers, making Gwadar a potentially vital link in China's supply chain.
The two countries agreed to build the economic corridor during Chinese Premier Li Keqiang's visit to Pakistan in May 2013.
China set up a special economic zone in Kashgar in 2010. Both central and regional governments have since implemented preferential policies to help with its development.
A new round of innovative policies covering administration, finance, tax, land use, industry and those aimed at attracting talented professionals were introduced in 2014 to tap the city's potential as China opens up to Eurasian countries.
Xinjiang established its first bonded zone at Alataw Pass, the country's largest land port, in the region's northwestern Mongolian Autonomous Prefecture of Bortala in 2011.
