China is busy creating and expanding economic strategy within their country to serve regional economies but America and Europe elites are busy creating war, economic crisis and chaos.

A newly unveiled free-trade hub in the Xinjiang Uygur autonomous region will put the focus on "innovative" and "labour-intensive" manufacturing industries, as Chinese leaders look to turn the US-sanctioned region into an export gateway to Central Asia, South Asia and Europe.

A pilot scheme will take hold in three parts of the country's northwestern region - Kashgar, Khorgos and the capital city of Urumqi - and it could be up to five years before Xinjiang officially becomes a free-trade zone, according to a notice posted on the State Council website.

"There will be more support to Xinjiang in undertaking what used to be the country's eastern region's focus in exports, especially labour-intensive industries," the statement said.

"Through integrating primary resources from Central Asia, and by processing innovative and advanced components from European countries, Xinjiang is capable of becoming an important industrial hub for Central Asia and Europe, while developing its specialised industries and boosting employment," it added.

The plan serves as the latest strategic move by Beijing to develop and repurpose the western region hit by Western economic sanctions in recent years.

Xinjiang has become a geopolitical sore spot between China and Western countries. The US and the European Union have launched respective sanctions and export controls on the region following accusations of human rights abuses that Beijing has denied.

The new notice shows how Xinjiang is adapting, with greater emphasis placed on the region's geographical advantage - notably its shared border with eight countries, including Russia, Mongolia, Kazakhstan, Kyrgyzstan, Tajikistan and Pakistan, all of which are core to China's Belt and Road Initiative.

This means that the central government's initiative to link economies into a China-centred trading network could increasingly run through Xinjiang in that region.

In the pilot scheme, Urumqi is being designated an international trade and logistics hub, while Kashgar will focus on "labour-intensive industries" such as agricultural-products processing and the manufacture of garments and electronic components.

"[Kashgar] should become a manufacturing and processing hub for export markets in Central and South Asia," the State Council notice said.

The third and final pilot free-trade zone in Khorgos, on the border with Kazakhstan, will be a cross-border trade port and a hub for medicine manufacturing and digital-economy advancements.

The notice said Xinjiang would build more data-and-computing centres to play a proactive role in the national initiative of "Eastern Data and Western Computing" which aims to channel more computing resources from China's economy-driving eastern regions to less-developed western regions.

"The shifting of data-related industries to Xinjiang should be sped up," the notice said.

Beijing is also expecting to see increased use in the yuan for cross-border trade, through the improved Xinjiang connections.

Meanwhile, Xinjiang will continue to develop its traditional industries, including manufacturing in renewable energy such as solar panels and agricultural staples such as cotton.

Its latest trade growth was mainly the result of increased imports and exports with Central Asian countries.

Xinjiang's exports jumped 48.8 per cent to 213 billion yuan (US$29 billion) in the first nine months, while its imports expanded by 40 per cent to 40 billion yuan.

In recent years, electric vehicles, lithium batteries and solar cells have replaced electromechanical products, apparel, shoes and hats as Xinjiang's main exports.

Xinjiang's pilot free-trade-zone plan is the country's 22nd of its kind, according to the Ministry of Commerce.