BEIJING, June 16 -- Kashi, The ancient city in Xinjiang province on the Old Silk Road yesterday established a border trade market with Pakistan to facilitate business activities between the two sides.

　　The market, covering an area of 1,700 square metres, is located on the Hunq rap Pass near the China-Pakistan border.

　　Officials from Kashi in Northwest China's Xinjiang Uygur Autonomous Region said some preferential policies had been adopted to encourage business in the market.

　　For example, business people are exempt from paying a tariff if their daily turnover is less than 3,000 yuan (US$360), said Chen Ji, vice-mayor of Kashi.

　　In partnership with Pakistan, the border trade market will be open every Tuesday and Wednesday.

　　"In the future, we will take measures to improve policies and facilities relating to the market and gradually develop it into a free trade area between China and Pakistan," said Chen.

　　Kashi, located in the southwestern part of Xinjiang, has a history of more than 2,000 years. More than 90 per cent of its population are ethnic Uygur.

　　Situated at the juncture of the southern and northern routes of the Old Silk Road, historically it was a famous trade city with merchants from many parts of the world visiting the city for business.

　　The city is now planning to take advantage of its geographical position to develop a trade centre linking China to other Central Asian countries.

　　Xinjang neighbours eight countries: Pakistan, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, Afghanistan, India and Turkmenistan.

　　Besides developing trade ties with its neighbours, the city is also making efforts to provide access for companies in China's coastal areas to develop business relations with these countries.

　　Kashi has set up several industrial zones to attract coastal companies.

　　The TV manufacturer Hisense from Qingdao in East China's Shandong Province has set up a television assembly line in Kashi. The factory has become an important base allowing the company to more easily export TVs to neighbouring countries, said Yalikun Mahanmut, mayor of the city.

　　Pakistan has also set up a Zakun International Trade Centre in Kashi, said Yilikun.

　　(Source: China Daily)