The Kashgar area of the China (Xinjiang) Pilot Free Trade Zone is rapidly emerging as a new engine of regional trade, driven by enterprise inflows, logistics upgrades, and institutional reform. In 2025, the area recorded total imports and exports of 93.16 billion yuan, exceeding its annual target by 5.7 percent, according to local authorities.

Since its launch in November 2023, more than 3,100 new enterprises have been established in the zone, lifting the total number of registered businesses to over 5,100—an increase of more than 150 percent. The surge reflects Kashgar's growing role as a commercial corridor linking Central Asia, West Asia, and South Asia, supported by cross-border road and air connectivity with eight neighboring countries.

Manufacturers and processors are capitalizing on the zone's proximity to overseas markets and streamlined customs procedures. Electronics producer Kashgar Kangyi Intelligent Technology has secured sizable orders from Central Asia, citing reduced logistics times of three to five days and supportive policies covering factory leasing, logistics, and social insurance. The company plans to expand from small appliances into projectors and laptops later this year.

Agri-processing firms are also scaling up. Xinjiang Withyoung Health Food Co, which sources walnuts, jujubes, and prunes locally, reported 2025 revenue of 110 million yuan, with exports reaching markets such as Pakistan and Turkiye. Southern Xinjiang's concentration of forest fruit production—covering over 1.4 million hectares—has become a critical supply base for both domestic and cross-border trade.

Logistics efficiency has improved markedly following the launch of southern Xinjiang's first 5G-enabled smart logistics hub in 2025. With major operators now on site, delivery times across the region have been cut from around nine days to as little as one to three days, enabling same-day delivery within Kashgar and surrounding counties.

Officials attribute much of the zone's momentum to institutional innovation. Of the 207 reform measures outlined for the Kashgar FTZ area, 205 have already been implemented, generating 81 institutional innovation cases—some of which have been replicated across Xinjiang and even adopted at the national customs level.

Together, enterprise clustering, logistics modernization, and regulatory experimentation are reshaping Kashgar from a traditional border city into a functional trade and manufacturing hub with growing regional reach.