China’s Ministry of Commerce has announced that China’s economic and trade collaboration with the five Central Asian countries, formerly part of the Soviet Union, has yielded significant outcomes since the establishment of diplomatic relations over 30 years ago. The declaration comes ahead of the China-Central Asian Summit, which commenced on May 18. In 2022, China’s trade with Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan soared to US$70.2 billion, a remarkable increase from the mere US$0.46 billion recorded in 1992 when diplomatic ties were first established.
China currently holds the position of the largest trading partner for Kyrgyzstan, Turkmenistan, and Uzbekistan, and the second largest trading partner for Kazakhstan, as well as the third largest trading partner for Tajikistan, as confirmed by the Ministry. Bilateral trade volume witnessed a 40% growth in 2022 compared to the previous year and sustained a year-on-year expansion of 22% in the first quarter of this year.
The trade structure has also shown improvement over the years. In the previous year, China’s imports of agricultural, energy, and mineral products from the five Central Asian nations witnessed a remarkable increase of over 50% compared to the previous year, while exports of mechanical and electronic products to these countries surged by 42%.
Moreover, investment cooperation has proven mutually beneficial. By the end of March 2023, China’s direct investment in the five Central Asian countries exceeded US$15 billion, with a cumulative turnover of completed projects reaching US$63.9 billion.
Numerous collaboration projects have been initiated in sectors such as infrastructure, oil and gas exploration, manufacturing, medical and healthcare, education, technology, and the digital economy.
China and all five Central Asian countries have entered into cooperative agreements for the joint construction of the Belt and Road Initiative, encompassing various significant projects. Notably, the Horgos International Border Cooperation Center and the China-Central Asia gas pipeline serve as remarkable landmarks in this endeavor.
The Horgos International Border Cooperation Center stands as the world’s first trans-border international free trade zone and China’s inaugural special economic zone situated “within the country, but out of the jurisdiction of its customs.”
Stretching across Turkmenistan, Uzbekistan, and Kazakhstan, the China-Central Asia gas pipeline represents China’s initial transnational gas pipeline. Since its commencement in 2009, the pipeline has delivered a cumulative total of 423.2 billion cubic meters of natural gas to China by the end of 2022. The pipeline has played a pivotal role in fostering the socioeconomic advancement of the countries along its route while significantly contributing to diversifying China’s energy imports and enhancing the domestic energy consumption structure.
In the city of Xi’an, the assembly center of the China-Europe Railway Express operates with 17 mainlines connecting to Central Asian countries. This transportation network has become a vital channel facilitating two-way logistics between China and Central Asia, often referred to as the golden route.
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Summary
China’s economic and trade cooperation with the five Central Asian countries (Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan) has yielded significant results since diplomatic relations were established over 30 years ago. Trade between China and these nations has increased from US$0.46 billion in 1992 to US$70.2 billion in 2022. China is now the largest trading partner for Kyrgyzstan, Turkmenistan, and Uzbekistan, and the second largest for Kazakhstan, as well as the third largest for Tajikistan. Bilateral trade volume experienced a 40% growth in 2022 and a 22% year-on-year expansion in the first quarter of 2023.
The trade structure has improved, with China’s imports of agricultural, energy, and mineral products from the Central Asian countries increasing by over 50% in 2022, while exports of mechanical and electronic products to these nations rose by 42%. Investment cooperation has also been fruitful, with China’s direct investment stock in the region reaching over US$15 billion by March 2023, and completed projects totaling US$63.9 billion.
China and the Central Asian countries have collaborated on various projects, including the Horgos International Border Cooperation Center, the first trans-border international free trade zone in the world, and the China-Central Asia gas pipeline, China’s first transnational gas pipeline. The pipeline has delivered 423.2 billion cubic meters of natural gas to China since 2009, contributing to the development of the countries along its route and diversifying China’s energy imports. Additionally, the assembly center of the China-Europe Railway Express in Xi’an has become a crucial logistics channel between China and Central Asia, facilitating trade and connectivity.
Learn more about the Belt and Road Initiative and its impact on economic and trade cooperation.