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Kashgar's old city. [Photo/Xinhua]

Despite its early success, Kashgar is faced with challenges that never troubled Shenzhen.

Transportation is the biggest challenge. Although the city boasts an international airport, most outbound flights have to stop over in Urumqi, the regional capital, and there no direct rail link between Kashgar and major cities outside the autonomous region.

"If the transportation is good, Kashgar will become a gateway to the west. If not, it will remain locked deep in the desert," said Chen Bin, director of the zone's Office of Party and Government Affairs.

Last year, the city began subsidizing major domestic and international flights - for example, airlines now receive a subsidy of $20,000 for a round trip between Kashgar and Islamabad.

"The passenger flow has been increasing gradually, but it's still far from enough," Chen said.

Another pressing problem is a lack of talent. "The SEZ is starved of talent, especially in finance, engineering and research," Xu Fenglin said. He understood that many people outside Xinjiang are concerned about possible unrest and terrorist attacks, but said the reality is different.

"When I first decided to come to Kashgar, almost all my relatives and friends were against my decision. But now I live a good life here. People will change their minds if they can experience the city for themselves."