The Chinese Government is to invest CNY10bn (US$1.6bn) to boost the textile industry in the country's largest cotton producing region - the Xinjiang Uyghur Autonomous Region, in western China.

According to the Xinjiang local government, the investment will be used to attract clothing manufacturers from other provinces, build infrastructure, and to subsidise existing local textile companies by lowering taxes and subsidising logistics costs.

The Chinese 12th five-year (2011-2015) development plan for the local textile industry reveals that Ürümqi, Xinjiang's capital, has been earmarked for development as the regional textile and apparel trading centre, while Aksu, Shihezi and Korla have been designated as three textile industrial cities.

Meanwhile, large textile industrial parks will be located in seven cities, towns and counties - Hami city, Bachu county, Alar city, Xayar county, Manas county, Kuytun city and Khorgas town.

The investment is expected to add 1m jobs in the region. "The investment will help us become an export hub as we plan to export apparel and textile products to Europe, central Asia, western Asia and south Asia," an official at the Xinjiang government's textile industry management office told just-style.

He added that it can take just two weeks to ship goods from Xinjiang to Duisburg, Germany via the Yuxinou railway (the Chongqing-Xinjiang-Europe route). Xinjiang is one of the poorest regions in China and has been subject to recent political instability.