Facing the new century, the CPC Central Committee and the State Council made the important strategic policy-decision concerning the development of the western region. In terms of strategic status in China’s economic development, politics and national defense, Xinjiang is very important for the efforts to develop western region. The implementation of the strategy of western region development brought Xinjiang unprecedented opportunities for development, will give a great impetus to and speed up economic and social development of Xinjiang. According to the arrangement of CPC Central Committee for the Western Region Development, the autonomous region regional government made a deep analysis of the advantages and disadvantages of Xinjiang in the Western Region Development, further defined the guiding ideology and strategy and organized special personnel to compile  Western Region Development—The Planning for the Development of Xijiang. In the planning, the autonomous regional government pointed out that it is essential to adhere to the strategy of competitive-edge resources transformation with market as the orientation, to focus our efforts on economic restructuring. And we should determine priorities, give support to the strong and qualified, develop economy with local characteristics so as to transform the resource advantage into economic advantage. 

Priority tasks of Xinjiang in the implementation of the strategy of western development: 
1. Strengthening the development of infrastructure facilities such as water conservancy, transportation and energy.
　　Concerning the development of water conservancy, efforts will be concentrated on the development and improvement of major rivers such as Ili River, Ertix River and Tarim River. It is particularly important that a prominent place be given to the rational conservation as well as rational use of water resources. To do so, we must conduct comprehensive improvement for Tarim River to improve the eco-environment in the river valley. We should also intensify our efforts to exploit ground water and save water. In addition, we must make vigorous efforts to promote technologies for spray irrigation and drip irrigation so as to increase utilization rate of water resources. By 2005, we will endeavor to have exploited 500 cubic meters water annually, completed the upgrading projects of water saving for 34 large irrigation areas of Xinjiang and completed anti-flood projects for major rivers. 
　　With respect to the development of transportation facilities, efforts will be focused on advancing transport capability, expanding network and improving distribution of roads, speeding up the construction of major roads and trunk traffic lines in western region of China. Regarding the construction of highway, major efforts shall be put to roads around National Highway No.312 and No. 314 and some highways will be built such as the Kuytun—Sayram Lake Highway, Xiaocaohu Lake—Toksun Highway, the Hoxut—Korla Highway and the highway along the northern side of Tianshan Mountain. Continued efforts will be made to strengthen the construction of roads in rural areas, roads leading to ports, roads for border defense and roads used for poverty relief so as to expand communication and exchanges between different regions. As for railway, the construction of the China—Kirghizia—Uzbekistan Railway and the Jinghe—Yining—Huocheng Railway will be accelerated. The construction of the Kuytun—Altay Railway will be started so as to form a framwork for railway transportation. On civil aviation. Efforts will be made to strengthen the development of infrastructure facilities in airports, with focus on improving the functions of Urumqi International Airport and Kashgar International Airport, expanding and building a number of branch line airports. As far as the construction of pipeline is concerned, the implementation of the West—East Gas Transmission Project will be sped up, and preparatory work will be done for the China—Kazakhstan oil pipeline. The pipeline network in Xinjiang will be improved and coordinated. And we will accelerate the construction of the Xinjiang—Lanxhou product oil pipeline.
 　Concerning the development of electric power, the construction of power source and power grids will be strengthened and the coverage of power grid expanded both by utilizing low cost coal and hydro energy. While making great efforts to develop water power and thermal power, a number of natural gas power and wind power projects will be built so as to gradually increase the proportion of clean energy in the mix of electricity supply and form a larger power grid of Xinjiang with Urumqi as the center. 　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　

2. Vigorously readjusting and optimizing economic structure by developing economy with local characteristics and industry with competitive edge. 
　　Irrational economic structure remains the prominent problem in the economic development of Xinjiang. Therefore, efforts will be made to strategically restructure and optimize economy of Xinjiang. To do so, we must build on our resources with competitive edge, develop farm production, livestock breeding, quality, famous-brand and special products with regional characteristics, and develop water-saving agriculture, eco-agriculture, efficient agriculture and cash-earning agriculture and endeavor to advance overall agriculture economic benefit. We also should continually promote the development of petroleum industry and petroleum chemical industry and effectively readjust and upgrade the textile industry. We have to carry out the brand-name strategy to develop industries with local characteristics such as food, light textile, building material and non-ferrous metal industry. Vigorous efforts will made to develop the tertiary industry with focus on tourist industry featuring ethnic folk custom and local scenery. New and hi-tech industry will be developed vigorously to cultivate new economic growth point. And much work should be done to foster good environment to promote the development of non-public sector of the economy. 　

3. Determining priorities, giving support to the strong and qualified, accelerating the development of the economic belt along the northern side of Tianshan Mountain and promoting coordinated development of regional economy. 　
　　Big gaps exist in production conditions and economic development fundamentals of localities of Xinjiang, so we must take measures suited to local conditions, conduct classified direction and adhere to the principle of determining priorities and supporting the strong and qualified. Geographically, we first recommend the economic belt along the northern side of Tianshan Mountain starting from Urumqi in the east and ending in Dushanzi in the west, including Urumqi, Changji, Shihezi, Shawan, Usu, Kuytun and Karamay. The economic belt is most attractive to investment, compared with other areas of Xinjiang. In 2000, the GDP produced in the belt amounted to 44.4% the total of Xinjiang, being the core of the economy of Xinjiang and having had basic conditions for rapid development. We shall draw resources at home and abroad to make the economic belt to develop faster. Thus, we will promote economic development of the entire region by making qualified regions and industries developed before others. In the meantime, stronger support will be given to poverty-stricken areas by giving relief in the form of development.

4. Effectively protecting and improving the environment.　
　　Xinjiang has a weak eco-environment, therefore, in the process of development, we must properly handle the relations between economic development and environment protection and improvement. Our priority tasks in eco-environment protection and improvement: according to the state overall plan of “reconverting western region into a land with beautiful natural landscape”, we must bear in mind long-term growth, make meticulous plan, stick to the principle of “attaching equal importance to protection and improvement” and combine middle and long term protection with the solution of current major environmental problems. To accomplish these tasks, we must focus efforts on the improvement of major rivers valleys, take forestation and grass planting as the leading, base on the improvement of soil and rely on major projects. We should also divide regions and make overall and systematic plan for environment improvement so as to promote eco-environment protection and improvement in a comprehensive way and gradually eliminate environmental disasters such as drought, salinization, wind-blown sand and pollution. Thus, the eco-environment of our region will be improved fundamentally and sound circle achieved. 

5. Vigorously advancing scientific and technological progress, accelerating the process of training talents, making great efforts to develop science and technology and education undertakings. 
　 We must fully carry out the strategy of invigorating Xinjiang through science and education, encourage technological innovation, accelerate the process of popularizing and applying scientific and technological achievements with orientation toward economic development. We will use advanced technology to upgrade traditional industries and put more efforts to technological development of major industries and key enterprises. The reform in science and technology management system should be sped up to set up a mechanism with the close combination of scientific research and development and production. The popularization of scientific and technological knowledge must be promoted to enhance the awareness and quality of people of all ethnic groups on science and technology. We must comprehensively promote the development of quality-oriented education by deepening education reform, and accelerate the process of popularizing nine-year compulsory education. We shall make a rational adjustment and allocation of educational resources and have the existing institutions of higher learning operate better to nurture more talents urgently needed for the development of Xinjiang. Non-government sectors are encouraged to run schools to form an educational pattern with modern education means and a high degree of information technology. 

6. Opening wider to the outside world in all directions. 
　　We will continue implementing the policy of “all-directional opening up, introducing technology, expertise and capital while cooperating with domestic enterprises, and cooperating with eastern regions to export westward ”, expand opening in fields and depth and improve the all-directional, multi-tiered and broad fields opening pattern. Working with other provinces, we shall vigorously conduct multi-tiered, multi-field and multi-form horizontal economic integration and technological cooperation. And we will relax restrictions of policy and improve investment environment to attract more inland enterprises to invest in Xinjiang and encourage all resources of the general community to participate in the development of Xijiang. In line with the trend of economic globalization, we must make full use of resources and markets at home and abroad, and take an active part in international economic and trade development, economic cooperation and economic competition. Giving further play to the geographic advantage of being adjacent to central and south Asia, relying on the Asia-Europe Continental Bridge and improving the major international traffic channel, we will make unremitting efforts to open markets in central, western and southern Asia, and build international commerce and trade center of the western region of our country so as to truly give Xinjiang the play of the role of bridgehead for the practice of “cooperating with the eastern region to export westward” in the process of the western region development. 
　　The development of western region is a long-term strategic task, and therefore should be pushed forward step by step in a systematic way. The autonomous regional government has made the tenth five-year plan and is conducting the implementation of the plan. The plan embodies the guiding ideology for the development of western region and defines major tasks for the near future. Besides, in last year, we promulgated a number of preferential policies for attracting businesses and investment and encouraging foreign investment, cleared up policies and regulations and documents not suitable to the development of western regions and the market economy system, removed and unified a number of matters requiring administrative examination and approval, streamlined examination and approval procedures, further improving the environment for investment.