China’s economic and trade cooperation with the five Central Asian countries has yielded significant results since the establishment of diplomatic ties over 30 years ago, according to the Chinese Ministry of Commerce. Trade between China and Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan has surged from $0.46 billion in 1992 to $70.2 billion in 2022.
China has emerged as the largest trading partner for Kyrgyzstan, Turkmenistan, and Uzbekistan, as well as the second largest for Kazakhstan and the third largest for Tajikistan. Bilateral trade volume has witnessed a remarkable 40% growth year-on-year, maintaining a robust development momentum with a 22% expansion in the first quarter of this year.
Over the years, the trade structure has improved significantly. In 2022, China’s imports of agricultural, energy, and mineral products from the five Central Asian countries surged over 50% compared to the previous year, while exports of mechanical and electronic products increased by 42%.
Investment cooperation has also been mutually beneficial. China’s direct investment stock in the five Central Asian countries exceeded $15 billion by the end of March 2023. Completed projects have reached a cumulative turnover of $63.9 billion, spanning various sectors such as infrastructure, oil and gas exploration, manufacturing, healthcare, education, technology, and the digital economy.
China and the five Central Asian countries have signed cooperation agreements related to the joint construction of the Belt and Road Initiative (BRI), a landmark initiative promoting connectivity and economic integration across regions. Notable projects include the Horgos International Border Cooperation Center, the world’s first trans-border international free trade zone, and the China-Central Asia gas pipeline, China’s first transnational gas pipeline. The gas pipeline, spanning Turkmenistan, Uzbekistan, and Kazakhstan, has played a pivotal role in facilitating social and economic development along its route, diversifying China’s energy imports, and improving domestic energy consumption.
Additionally, Xian’s assembly center for the China-Europe Railway Express has become a crucial logistics channel between China and Central Asia, boasting 17 mainlines connecting the two regions.
China’s robust economic and trade cooperation with Central Asian countries not only contributes to regional growth but also strengthens connectivity and fosters shared prosperity. The ongoing collaboration under the Belt and Road Initiative lays the foundation for sustained development and enhanced regional integration.