As a key hub for China's westward opening, the Xinjiang FTZ requires a law-based business environment to achieve national strategic goals. SMEs, as drivers of innovation, are highly vulnerable to IP disputes in cross-border trade and emerging industries, necessitating an efficient and credible resolution mechanism. Current mechanisms face challenges including low regulatory practicality, uneven judicial resources, weak arbitration and mediation capabilities, and cross-border enforcement difficulties. This study proposes a diversified IP dispute resolution approach tailored to Xinjiang and SMEs, addressing five dimensions: legislative refinement, judicial specialization, arbitration and mediation cultivation, inter-ministerial coordination, and cross-border enforcement cooperation.