China Deepens Central Asian Ties with Billions in New Investment
China continues to solidify it’s economic and political influence in central Asia, evidenced by a recent wave of agreements secured during high-level meetings with Uzbekistan and Kazakhstan. Teh week-long discussions resulted in over $1.5 billion in new investment into oil and gas projects, signaling Beijing’s sustained and predictable engagement with the region.
Uzbekistan secured a $1 billion deal with the China National Petroleum Corporation (CNPC) to construct a gas chemical complex in the Aktobe region. Additionally, a roughly $500 million agreement was reached with the China Development Bank to finance the construction of pipelines for transporting ethane and propane in the Atyrau region.These investments underscore China’s growing role in Central Asia’s energy sector.
Cooperation in nuclear energy also took centre stage. Uzbek President Shavkat mirziyoyev met with Shen Yanfeng, chairman of China’s National Nuclear Corporation (CNNC), on September 2nd to discuss expanding collaboration in the field. This occurred alongside the announcement of 13 new mining-related deals, including uranium projects, valued at a total of $5 billion, by Uzbek Mining and Geology Minister Bobir islamov.
This increased focus on chinese nuclear cooperation comes as Uzbekistan considers alternatives to Russia’s Rosatom, with whom a feasibility study for four reactors was signed in June, but whose future is uncertain due to international sanctions. Kazakhstan has already moved in a similar direction, awarding CNNC contracts to build both its second and third nuclear power plants, announced in July by Deputy Prime Minister roman Sklyar.
Analysts note that this activity reflects a consistent pattern of Chinese engagement in Central Asia. Temur umarov, a fellow at the Carnegie Russia Eurasia Center in Berlin, emphasizes that Central Asian nations are maintaining a “multivector foreign policy,” actively diversifying their partnerships while continuing to cultivate strong ties with China.
while welcoming Chinese investment and companies, Central Asian governments are also mindful of avoiding overdependence. This strategy is demonstrated by their efforts to strengthen relationships with other global players. Uzbekistan hosted a landmark summit with the European Union in April to discuss potential deals in energy, minerals, and transit. While China is currently Central Asia’s largest individual trade partner, with bilateral trade reaching a record $94.8 billion in 2024, the EU remains the region’s largest foreign investor with its 27 member states.
Further illustrating this diversification, President Mirziyoyev spoke with former US president Donald Trump on September 5th, inviting him to visit Uzbekistan. Mirziyoyev previously visited the White House in 2018,where he received praise from President Trump.
