Zhang Guoqing: Empower Industry, Create Jobs in Xinjiang

Chinese Vice Premier Zhang Guoqing has called on central state-owned enterprises (SOEs) to strengthen industrial empowerment and prioritize employment generation in their aid efforts for Xinjiang, marking a strategic push to enhance the comprehensive benefits of state-led development in the region. During a four-day inspection tour from July 2 to July 5, Zhang visited industrial enterprises in Yili and Changji prefectures, urging a shift from purely investment-driven aid toward a more holistic approach centered on sustainable job creation and local capacity building, according to Xinhua News Agency.

Context: A New Phase for Xinjiang Development

Zhang’s inspection comes at a pivotal moment — the beginning of China’s 15th Five-Year Plan period (2026–2030). The visit follows closely after Vice Premier Ding Xuexiang’s own Xinjiang inspection on June 25–26, signaling a coordinated high-level push on regional development policy. The broader context includes a March 2026 symposium in Beijing where 18 central SOEs signed 92 cooperation agreements worth approximately 170 billion yuan ($23.4 billion) covering energy, minerals, computing power, and equipment manufacturing, as reported by the Xinjiang Government.

During the previous 14th Five-Year Plan period (2021–2025), central SOEs completed cumulative investment of 1.09 trillion yuan (roughly $150 billion) in Xinjiang, supporting employment for over 540,000 people. A landmark 2024 meeting in Kashgar saw 25 central SOEs sign 183 projects with planned investment of 939.571 billion yuan by the end of 2028, according to the State Council.

Key Directives from the Inspection

During his tour, Zhang Guoqing visited enterprises across four sectors: mineral resources, steel and metallurgy, textile and apparel, and equipment manufacturing. He issued a series of directives aimed at deepening central SOEs’ engagement with Xinjiang’s economy:

• Industrial alignment: SOEs must increase their industrial layout in line with Xinjiang’s existing industrial foundation, resource endowments, and development plans.
• Infrastructure participation: Enterprises should engage in building roads, electricity and telecommunications networks, oil and gas supply systems, and industrial and domestic water infrastructure.
• Provincial SOE mobilization: Zhang called for mobilizing provincial-level SOEs from aid-providing provinces to invest in Xinjiang.
• Workwear initiative expansion: The central SOEs’ “workwear aid Xinjiang” (工装援疆) program — which procures uniforms and protective clothing from local manufacturers — should be expanded to create stable demand for the region’s textile industry.
• Policy support: Aid-providing central SOEs should receive supporting policy adjustments in assessment and evaluation frameworks.

Employment as the Central Metric

A defining theme of Zhang’s remarks was the emphasis on employment as the primary measure of aid effectiveness. “We must insist on driving employment through industry, promoting production expansion and job creation through industrial coordination,” Zhang said, as quoted by Xinhua.

He called for supporting Xinjiang in building “pillar industries with strong roots and high stability,” accelerating advanced manufacturing clusters, and strengthening labor-intensive industries such as textile and garment manufacturing and agricultural product processing. The vice premier also urged support for school-enterprise cooperation and order-based training programs to equip local workers with relevant skills.

Analysis: A Strategic Shift

Zhang’s emphasis on “comprehensive benefits” (综合效益) signals an evolution in Beijing’s approach to Xinjiang development. Rather than focusing solely on capital investment volumes, the new framework prioritizes three interconnected outcomes: employment generation as a key success metric, industrial sustainability over short-term gains, and local capacity building through skills training and校企合作 (school-enterprise partnerships).

This shift aligns with broader national priorities as China enters its 15th Five-Year Plan period. The coordinated visits by both Zhang Guoqing and Vice Premier Ding Xuexiang within a two-week span suggest that Xinjiang development — particularly industrial empowerment and employment stabilization — has been elevated as a priority for the new planning cycle.

What to Watch For

Looking ahead, several developments bear watching: the specific investment targets central SOEs will be assigned for the 15th Five-Year Plan period; how the workwear initiative translates into measurable employment outcomes; and whether the industrial policy framework addresses international scrutiny of labor practices in Xinjiang. The focus on Yili and Changji — both in northern Xinjiang — also raises questions about how these policies will extend to southern Xinjiang, which has been identified as a strategic priority in broader policy discussions.

As the new Five-Year Plan unfolds, the effectiveness of this employment-oriented, industry-driven approach will be measured not just in yuan invested, but in jobs created and livelihoods improved across the region.