How XML make an User Interface for android

After reading some resources I found that XML is used to store data and show data. But in android XML is used to make a layout. Here I am confused. How XML makes an user interface. In JAVA for a text field we use

JTextField jt = new JTextField(30);
    add(jt);

But in android for a text field we write

<EditText
    android:id="@+id/editText1"
    android:layout_width="match_parent"
    android:layout_height="wrap_content"
    android:ems="10" />

I think when android machine find this XML code then it replace this XML by a JAVA code.

If I am wrong please correct me.