Central Asian countries get on the "Belt and Road" express
In recent years, Central Asian countries such as Kazakhstan, Uzbekistan, Turkmenistan, Kyrgyzstan, and Tajikistan have deepened internal reforms, improved the business environment, and paid attention to infrastructure construction and fixed asset investment; strengthened cooperation with the outside world and focused on development The country’s economic and trade exchanges have actively integrated into the “Belt and Road” construction, and the economies of all countries have maintained a good momentum of development. At present, the enthusiasm of the five Central Asian countries to participate in the construction of the “Belt and Road” is constantly increasing, and cooperation with China has been incorporated into their respective national strategic frameworks.
Actively participate in the "Belt and Road" construction
China is Kazakhstan's main trading partner and the second largest export market and second largest source of imports for Kazakhstan. The “Investment Guide for 2018” formulated by the Kazakh government states: “Kazakhstan hopes to participate in the construction of the “Belt and Road”, creating 20,000 jobs and improving infrastructure in the next 5 years. The Kazakh government hopes to take the “Belt and Road” express train to change Relying on the development model of oil and natural resources, improving railway and highway infrastructure, and expanding the development of the logistics industry. At present, China and Kazakhstan have reached the intention of 51 capacity cooperation projects, with a total investment of 26.5 billion US dollars. There are 12 upcoming and already launched projects, involving a total of 4 billion US dollars, including light rail, subway expansion, and Pavlodar electrolytic aluminum. Plant, PetroChina Large-diameter Steel Pipe Plant and other projects.
Uzbekistan is an important country on the "Silk Road Economic Belt". Uzbek President Mirziyoyev stated that he will take the “Belt and Road” initiative as an opportunity to deepen the cooperation between Uzbekistan and China in the fields of infrastructure, investment, economy and trade, production capacity, industrial parks, and water conservancy. During the “Belt and Road” International Cooperation Summit Forum held in Beijing last year, the Export-Import Bank of China and Uzbekistan signed loan agreements for power grid upgrades, coal-fired power stations, coal mine renovations, etc. The Silk Road Fund signed a cooperation with Uzbekistan’s Foreign Economic Bank. protocol. With the establishment of the China-Uzbekistan comprehensive strategic partnership, the two sides will jointly seize historical opportunities to promote cooperation in various fields between the two countries to a higher level and broader space within the framework of the joint construction of the "Silk Road Economic Belt".
Facilities connectivity is the common concern of many countries in Central Asia, and it is also an important part of the “Belt and Road” construction. The Kyrgyz government’s program calls for “strive to repair and maintain roads, develop international transport corridors, and expand the domestic road network”. In order to build the country into an international transportation hub, Turkmenistan has formulated relevant strategic plans in recent years and has also implemented a number of transportation infrastructure construction projects. Tajikistan’s national development strategy has transformed the country from a transportation island into a transit transportation corridor. The “Belt and Road” initiative provides opportunities for Central Asian countries to develop roads, railways and other transportation facilities. Central Asian countries start to use more clean energy such as water, wind, and solar power to generate electricity with the help of Chinese funds and technologies to improve the regional ecological environment. It is conducive to promoting the stability of the regional situation and achieving economic prosperity and development.
As Central Asian countries actively participate in the “Belt and Road” construction, the economic, trade and investment cooperation between Central Asian countries and China continues to heat up, and their dependence on China's trade and market continues to increase.
Kazakhstan regards China as one of its most important trading and investment partners. Statistics show that in 2017, China-Kazakhstan bilateral trade volume was 18 billion U.S. dollars, an increase of 37.4% over the previous year, and China became Kazakhstan's second largest trading partner. The main commodities imported by Kazakhstan from China are mechanical and electrical products, base metals and their products and chemical products, which together account for more than 60% of Kazakhstan's total imports from China. The main commodities that Kazakhstan exports to China are base metals and products, mineral products and chemical products. At the same time, the variety of goods exported by Kazakhstan to China has been increasing, and high-quality agricultural products such as flour, vegetable oil, meat, and honey have been on the table of the Chinese people. In terms of investment, as of the end of last year, China's cumulative investment stock in Kazakhstan exceeded 43 billion U.S. dollars, and various types of loans exceeded 50 billion U.S. dollars.
China is Uzbekistan's second largest trading partner, the largest source of investment, the largest export destination of cotton, and the largest supplier of telecommunications equipment and soil improvement equipment. The bilateral trade volume between China and Uzbekistan last year was about 4 billion U.S. dollars, an increase of 15% over the previous year and accounting for nearly one-fifth of Uzbekistan’s total foreign trade. In terms of investment, China has been the largest investment source country in Uzbekistan for many consecutive years, with a total of more than 7.8 billion U.S. dollars in total investment in Uzbekistan. The ceramic products and sanitary ware produced in the Zhongwu Pengsheng Industrial Park have been exported to neighboring countries in Central Asia such as Kazakhstan, Tajikistan, and Kyrgyzstan. The valves and faucets produced in the Zhongwu Pengsheng Industrial Park have entered the markets of Russia and other European countries. The first Sino-Ukrainian oil and gas upstream cooperation project, the Karakuli block gas field development surface project was started last year and the first phase of the project was ventilated on schedule.
China has become Turkmenistan's largest trading partner for many years. The two countries have strengthened the connectivity of facilities, promoted trade facilitation, optimized the trade structure, and promoted the development of trade in high-tech products such as electrical equipment. Last year, the bilateral trade in goods between Turkey and China was about 7 billion U.S. dollars, maintaining a relatively rapid growth. The governments of China and Turkey actively promote investment and project cooperation, and encourage enterprises of both sides to actively explore investment and economic and technological cooperation in the fields of energy, transportation infrastructure, communications, chemicals and textiles. The China-Central Asia natural gas pipeline has built three lines A, B, and C. Since its opening at the end of 2009, it has supplied more than 170 billion cubic meters of gas to China.
China is Kyrgyzstan's largest trading partner, the largest source of imports and the largest source of investment. The total bilateral trade in goods between China and Kyrgyzstan in 2017 was approximately US$5.6 billion, accounting for 27% of Kyrgyzstan's total imports and exports. Kyrgyzstan actively attracted Chinese investment by improving investment policies and project promotion in 2017, and achieved significant results. Chinese companies' investment in Kyrgyzstan is mainly concentrated in the fields of energy, rubber, plastic manufacturing and non-metallic mineral production, geological prospecting and mining products. Last year, China Road and Bridge Group signed a contract with Kyrgyzstan National Railway Company to participate in the construction of railways, highways, tunnels, airports and other infrastructure.
Strengthening friendly relations with China is one of the diplomatic priorities of the Tajik government. The two countries have signed nearly 200 bilateral documents. Tajikistan hopes to expand its agricultural exports to China, and strive to increase the bilateral trade volume to 3 billion U.S. dollars by 2020. The main commodities China exports to Tajikistan include machinery and equipment, textiles, electrical appliances, footwear, vehicles and spare parts, etc. The main commodities imported from Tajikistan include ore slag, hides and leather, silk, cotton, edible fruits and nuts.