China, while being one of the economic giants of the 21st century, is also one of the United States’ biggest rivals on the path to becoming a superpower. One of the key points in China’s growth process is the economic and political relations it has established with neighboring regions. China is aware of the importance of building relationships with neighboring countries in achieving its long-term goals. In this regard, Central Asia, due to its geographical proximity and potential resources, is one of the regions where China has made significant financial investments.
In China’s economic relations with Central Asia, the energy sector stands out. It is reported that Turkmenistan, one of these countries, became China’s largest gas supplier by exporting gas worth $5.67 billion in the first half of 2024. Russia ranks second with $4.69 billion. Considering that Central Asian countries supply a significant portion of the energy imported by Russia and China, China’s investment in the energy sector of these countries is a mutually beneficial situation for both sides.[i]
Since gaining its independence, Tajikistan has implemented 35 energy projects with over $5.3 billion in financial aid from China. Additionally, Tajikistan’s energy sector has benefited from $197 million in direct investments from Chinese companies.[ii] Uzbekistan and Kazakhstan are particularly noteworthy for China in the fields of solar and wind energy. In 2023, an investment agreement worth up to $6 billion was signed between Chinese companies and Uzbekistan in the field of renewable energy.[iii] Kazakhstan signed an agreement with Chinese companies on July 2024, including 23 projects worth more than 100 million dollars.[iv]
China’s interest in Central Asia is not limited to the energy sector; it is also advancing in the field of transportation. The Middle Corridor is economically strategic for China as it connects the country to Europe through Central Asia and the Caucasus.[v] In September 2024, China and Kazakhstan agreed to improve the road and railway infrastructure in the Central Corridor.[vi] However, China’s investments are not limited to this. In September 2024, the China-Kyrgyzstan-Uzbekistan railway company was launched. This 523-kilometer railway is expected to transport 15 million tons of cargo annually once completed. China’s advancement in the transportation sector through the Caucasus and Central Asia is seen as a strategic step to mitigate the risks posed by geopolitical instability in other regions.[vii]
The agriculture and livestock sector also holds an important place in China-Central Asia economic cooperation. In July 2024, it was announced that China would invest $1 billion in Uzbekistan’s Andijan region to establish a facility for processing the skins and organs of domestic animals.[viii] On the other hand, China is the largest market for Kazakh agricultural products. In 2023, agricultural exports from Kazakhstan to China amounted to $1 billion, and this figure is expected to increase further in the coming years.[ix] Kyrgyzstan, on the other hand, calls on domestic producers to increase trade in agricultural products with China.[x]
China’s investments in Central Asia should not be seen solely from an economic perspective, and political relations should not be overlooked. In July 2024, China announced its support for Kazakhstan’s accession to BRICS.[xi] During this period, Kazakhstan President Kasım Jomert Tokayev also stated that China was one of Kazakhstan’s main allies.[xii]
On the other hand, Tajikistan emphasized that developing the strategic partnership with China is a priority and announced that it supports the One China policy.[xiii] Uzbekistan’s President Shavkat Mirziyoyev, following his visit to Beijing in January 2024 at the invitation of China’s President Xi Jinping, stated that enhancing relations with China is one of Uzbekistan’s foreign policy priorities. Indeed, China currently ranks first in terms of direct foreign investment in Uzbekistan. [xiv]
China’s long-term strategy clearly indicates that Central Asia holds a critical position. The Beijing government is taking significant steps to strengthen the relationships between the two regions. While China’s investments enhance the geopolitical importance of Central Asia, they can also provide the resources necessary for the region’s potential to be realized. On the other hand, the evolving relations with Central Asia represent a significant market and energy resources for China, while also implying investment and economic development for Central Asia.
Good relations that China establishes with Central Asia allow it to expand its economic market with Europe and other regions through the region’s geographical position and to increase exports along this route. China’s investments in Central Asia, which began with an economic focus, can also be seen as a political investment, as it may lead regional leaders to adopt a closer stance towards China in the future amid US-China tensions.
The economic and political relations that China builds with Central Asia can be viewed as a means to secure its position against another significant power in the region, Russia, and as one of the steps toward becoming a superpower. Indeed, Russia also maintains commercial and political relations with Central Asian countries; however, given that it is currently engaged in a war with Ukraine, a space has opened up for China to strengthen its relations with the countries in the region. In other words, China may be filling the void left by Russia’s authority in maintaining stability in the region with economic and political investments following the Russia-Ukraine war.
By politically supporting its economic partnerships with Central Asia, there is a potential for these countries to take sides in favor of China in times of crisis. From this perspective, China may have the opportunity to expand its influence both economically and politically.
[i] Jalolova, S. (2024b, October 8). Turkmenistan surpasses Russia in gas exports to China – The Times of Central Asia. The Times of Central Asia. https://timesca.com/turkmenistan-surpasses-russia-in-gas-exports-to-china/, (Access Date:12.10.2024).
[ii] “China Invests over $5 billion in Tajikistan’s Energy Sector – The Times of Central Asia”. The Times of Central Asia. https://timesca.com/china-invests-over-5-billion-in-tajikistans-energy-sector/, (Access Date:12.10.2024).
[iii] Avdaliani, E. (2024, February 27). China goes green in Central Asia. Chinaobservers. https://chinaobservers.eu/china-goes-green-in-central-asia/, (Access Date:12.10.2024).
[iv] Kemelova, F. (2024, July 3). Chinese global leader in clean energy signs Multimillion-Dollar agreements for new Kazakh projects – The Astana Times. The Astana Times. https://astanatimes.com/2024/07/chinese-global-leader-in-clean-energy-signs-multimillion-dollar-agreements-for-new-kazakh-projects/, (Access Date:12.10.2024).
[v] Cutler, R. M. (2024, October 3). China officially joins the Middle Corridor – the Times of Central Asia. The Times of Central Asia. https://timesca.com/china-officially-joins-the-middle-corridor/, (Access Date:12.10.2024).
[vi] Kwan, S. (2024, September 26). Kazakhstan and China to increase cargo transportation along Trans-Caspian Route – The Times of Central Asia. The Times of Central Asia. https://timesca.com/kazakhstan-and-china-to-increase-cargo-transportation-along-trans-caspian-route/, (Erişim Tarihi:12.10.2024).
[vii] Kwan, S. (2024, September 30). China-Kyrgyzstan-Uzbekistan Railway Company opened in Bishkek – The Times of Central Asia. The Times of Central Asia. https://timesca.com/china-kyrgyzstan-uzbekistan-railway-company-opened-in-bishkek/, (Access Date: 12.10.2024).
[viii] “China to invest US$1 billion in Andijan region”. UzDaily.uz. https://www.uzdaily.uz/en/china-to-invest-us1-billion-in-andijan-region/, (Access Date: 12.10.2024).
[ix] Kwan, S. (2024, September 4). “China the Largest Market for Kazakhstan’s Agricultural Products – The Times Of Central Asia”. The Times of Central Asia. https://timesca.com/china-the-largest-market-for-kazakhstans-agricultural-products/, (Access Date: 12.10.2024).
[x] “Kyrgyz farmers urged to supply agricultural products to China – The Times of Central Asia”. The Times of Central Asia. https://timesca.com/kyrgyz-farmers-urged-to-supply-agricultural-products-to-china/, (Access Date: 12.10.2024).
[xi] “China Supports Kazakhstan’s Bid to Join BRICS – The Times of Central Asia”. The Times of Central Asia. https://timesca.com/china-supports-kazakhstans-bid-to-join-brics/, (Access Date: 12.10.2024).
[xii] “Kazakhstan and China cement strategic Partnership – The Times of Central Asia”. The Times of Central Asia. https://timesca.com/kazakhstan-and-china-cement-strategic-partnership/, (Access Date: 12.10.2024).
[xiii] Kwan, S. (2024, August 5). Tajikistan and China tighten strategic partnership – The Times of Central Asia. The Times of Central Asia. https://timesca.com/tajikistan-and-china-tighten-strategic-partnership/, (Access Date:12.10.2024).
[xiv] “Uzbek President Mirziyoyev Lauds Strategic Partnership with China – The Times of Central Asia”. The Times of Central Asia. https://timesca.com/uzbek-president-mirziyoyev-lauds-strategic-partnership-with-china/, Access Date:12.10.2024).
