Xinjiang Economy Steadily Grows In 2021-25 Driven By Investment And Trade

Northwest China’s Xinjiang Uygur autonomous region maintained solid economic growth during the 14th Five-Year Plan period from 2021 to 2025. A government work report in Urumqi said Xinjiang’s GDP increased at an average annual rate of 5.9 percent, while foreign trade and investment activity ranked among the strongest nationwide.

Xu Hongyun, Director of the Regional Government's Research Office, said core industrial sectors now generate more than 90 percent of industrial added value from large-scale enterprises. This concentration helped Xinjiang’s GDP reach 2.15 trillion yuan ($309.5 billion) in 2025, keeping total output above 2 trillion yuan for a second straight year.

Xinjiang has formed industrial clusters in oil and gas, clean coal utilisation, new-type power systems, green mining, advanced manufacturing and new materials. According to the report, Xinjiang’s oil and gas equivalent output ranked first in China in each of the past five years, with cumulative production reaching 320 million metric tonnes during that period.

The report noted that installed new-energy capacity in Xinjiang reached 167 million kilowatts, making up nearly two-thirds of the region’s total power capacity. Outbound electricity transmission increased at an average annual rate of 3.6 percent, and green electricity accounted for more than 30 percent of total power sent outside the region.

Regional performance in foreign trade and investment also strengthened. Li Xuan, Secretary of the Leading Party Members Group of Xinjiang's Department of Commerce, said the region's share of China’s total foreign trade volume rose from 0.5 percent to 1.1 percent. In 2025, Xinjiang recorded the highest foreign trade growth rate nationwide, China Daily reported.

Xinjiang economic growth and future policy planning

Fixed-asset investment rose by an average 9.8 percent a year from 2021 to 2025. Wen Hua, Secretary of the Leading Party Members Group of the Xinjiang Regional Development and Reform Commission, said at a Wednesday news conference that fixed-asset investment increased by 7.2 percent in 2025, ranking second nationally despite a broader slowdown.

Looking toward the 15th Five-Year Plan period from 2026 to 2030, Wen Hua said Xinjiang had both a strong base and policy space to expand effective investment. Planned measures include stimulating domestic demand, upgrading institutional frameworks and deepening cooperation among government bodies, financial institutions and businesses, aiming to support stable regional growth.

These trends show Xinjiang combining energy production, industrial clustering and trade expansion within national development plans. With sustained GDP growth, rising foreign trade share and continued investment focus, the region is expected to keep contributing to China’s wider economic goals during the transition from the 14th to the 15th Five-Year Plan periods.

With inputs from WAM