Opendoorpolicy

Inland Horgos City becomes a magnet for investment thanks to its highly attractive policies

Horgos lies at the heart of the infrastructure network linking China with countries along the silk Road Economic Belt. By moving here, we can serve our customers more efficiently.

It’s one of china’s youngest cities, with the country’s first cross-border free trade zone. The former century-old dry port of Horgos bordering Kazakhstan has changed beyond comprehension and now lures businesspeople from across China to set up bases with attractions that include reduced delivery time to international customers and substantial tax exemptions.

One of those businesspeople who took advantage of these attractions in the seemingly remote location of Horgos in northwest China’s Xinjiang Uygur Autonomous Region is Min Jianbo, CEO of Boshihao Electronics, a manufacturer of industrial robots. The company relocated its production lines from the economic powerhouse city of Shenzhen in south China’s Guangdong Province to Horgos, which is more than 600 km west of Urumqi, capital of the autonomous region. Apparently, Min is satisfied with the result.

“Horgos changes every second. We are confident that the city will become another Shenzhen of the future,” he told Chinafrica. And he is hardly alone in that view.

According to local government statistics, up to March 2017, more than 6,000 enterprises have been registered in Horgos, established as a city in 2014, 10 times more than five years before. The city has been building on the momentum created by the Belt and Road Initiative to up its game as an international trade platform, which explains the surge in businesses relocating.

Besides being the location of the China-kazakhstan Horgos International Border Cooperation Center (cross-border free trade zone), Horgos is also a special economic zone and as the city’s list of special statuses grows, local businesses enjoy more and more preferential policies. opening up policy. According to Min, his company has much to gain from this geostrategic advantage.

“Horgos lies at the heart of the infrastructure network linking China with countries along the Silk Road Economic Belt. By moving here, we can serve our customers more efficiently,” he said, adding that his company exports 70 percent of its production abroad. In fact, while Russia remains its main market, Boshihao’s new location in Horgos will allow it to further reach Central Asian and Middle Eastern markets, he said.

In addition, the newly-opened rail freight route between China and Europe transits through Horgos, which is another factor behind Min’s decision. “Because of this train, my company is now more competitive, as we can deliver more quickly.”

Previously, products had to be transported by sea for 90 days before reaching their end market. With the railway, goods can now be shipped from Horgos to Russia in just two weeks. “Reducing delivery time will accelerate our cash flow and significantly reduce pressures on our self-financing capacity,” Min said.