In the west of the residential area is a bazaar bustling with vendors. Renovations began in this part of town in 2009, after an earthquake killed nearly 70,000 people in Sichuan Province in May 2008. Xinjiang experiences frequent earthquakes, and the houses in Kashgar's old city are dilapidated and extremely vulnerable to quakes and fire.

Renovations to 28 blocks in and around the old city encompass 65,000 households with 220,000 residents.

"If there were an earthquake in Kashgar like the one in Sichuan, you couldn't imagine the consequences," said Vice Mayor Yue Zhigang. "The streets are very narrow—we couldn't conduct an evacuation or rescue. The basic infrastructure in the old city is outdated and the living and working conditions for the people are also comparatively poor."

"Our new house is pretty much the same with the old one we lived before but much better equipped," said Rehman Aili. "We have the electricity and gas. Plus, there is a separate room on the first floor which can be renovated into a shop. It is very convenient for doing business."

Aizeik Armu has been living in the old city for 60 years. His granddaughter attends college in Wuhan, central China's Hubei Province, and is always amazed by how much the old city changes between vacations. "She said Kashgar is turning into not only a beautiful city but a comfortable one to live in, and she plans to come back after graduation," said Armu.

Modern elements settled down in the old city at the same time. Super 8 Hotel, the world's largest budget hotel chain, has settled into Kantuman Bazaar.

The bazaar is named for a broad-headed Uygur pick-axe, and hosts iron and brass workshops employing skills handed down for hundreds of years. Artisans work iron and brass objects before their customers' very eyes.

The facade of the three-story Super 8 Hotel in Kantuman Bazaar is no different from any other building. Chen Liping, the owner, came to Kashgar in a self-guided tour in 2011. Amazed by the unique and mysterious atmosphere of the city, she decided to stay.

"Many of the tourists staying in this hotel are DIY tourists and some would stay for more than 10 days, exploring the city bit by bit."

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