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Xinjiang Horgos Introduction

Updated:2018-4-20 16:34:10    Source:www.tannet-group.comViews:734

Horgos is the land port in Yili Huocheng County, in the opposite of Kazakhstan across Horgos Lake. It was the important post in ancient silk road. After the foundation of New China, Horgos pass became the biggest west port between China and Soviet Union because of its superior location. Horgos, covers an area of over 1,900 square kilometers, with about 85,000 people living there. It is located on the border with Kazakhstan, and is a key land port. And lying on the Silk Road, Horgos plays a strategic role in China’s link to Central Asia.

China's Tax Heaven
Beijing has bestowed numerous tax breaks and preferential policies on Horgos hoping to stimulate growth in this strategic border town in Xinjiang, a key link on the new Silk Road between China and Central Asia, where the government says it is battling to defeat Islamist extremism.

According to Horgos’ tax bureau, 2,411 companies registered in Horgos last year, taking advantage of five years of no company tax, and a further five years paying half rate. At least half those companies are registered in Horgos solely for tax purposes, estimates Meng Shen, Director of Chanson & Co, a boutique investment bank in Beijing.

Chinese celebrities are opting to register production companies in Horgos and an increasing number of financial services and IT companies are also registering there. But with no obligation to operate from Horgos or even in Xinjiang, it is unlikely this policy will create jobs or bring money to what has long been an economic backwater.

Transportation in Horgos
In December 2011, a 293km railway from the Khorgas border crossing to Zhetygen terminal (near Almaty) was completed; the tracks from the Chinese and Kazakhstan sides of the borders were connected on December 2, 2012. For some months, the railway on the Kazakh side was still operating in a test mode. The railway border crossing (port of entry) at Horgos became operational in the late 2012;) the first regular trains from the two countries crossed the border on December 22, 2012.

The railway border crossing is expected to handle up to 15 million tons of freight per year initially, the volume rising to 30 million tons per year in the long run, opening up the second Europe-China rail link via Kazakhstan.

41-ton gantry cranes are used to move shipping containers between standard gauge Chinese trains and Russian gauge Kazakh trains.

In June 2017, the Ürümqi Railway Bureau of the China Railways started daily passenger service from Ürümqi to Astana via Khorgas.

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