China Deepens Central Asian Ties with Billions in New Investment
China continues to solidify it’s economicโค and politicalโ influence in central Asia, evidenced by a recentโฃ wave of โคagreements โsecured during โฃhigh-level meetings with Uzbekistan and โKazakhstan. Teh week-long discussions resulted in over $1.5 billion in new investment into oil and gas projects, โฃsignaling Beijing’s sustained and predictable engagement โwith the region.
Uzbekistan secured โa $1 billion deal with the China National Petroleum Corporation (CNPC) โขto construct a gas chemical โฃcomplex 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 ethaneโฃ and propane โขin the Atyrau region.These investments โคunderscore China’s growing role in Central Asia’sโ energy sector.
Cooperation in nuclear energy also took centre stage. Uzbek President Shavkat mirziyoyev met with Shen Yanfeng, โchairman of China’s National Nuclear Corporation (CNNC), on September 2nd to discuss expanding โขcollaboration in the field. This occurred alongsideโค the announcement of 13 โnew mining-related โdeals, including uranium projects, valued at a total of โฃ$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 โฃwhom a feasibility study for four reactors was signed in June,โ 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 โคnuclear power plants, announced in July by Deputy Prime Minister roman Sklyar.
Analysts note that this activity reflects a consistent pattern ofโ Chinese engagement in Central Asia. Temur umarov, aโ fellow at the โฃCarnegie Russia Eurasia Center in Berlin, emphasizes that Central Asian nations are maintaining a “multivector foreign policy,” actively diversifying their partnerships while continuing โto cultivate strong โขties with China.
while welcoming Chinese investment andโ companies, Central Asian governments are also mindful of avoiding overdependence. This strategy is demonstratedโฃ by their effortsโฃ to strengthen relationships with other โglobal players. Uzbekistan hostedโ a landmark summit โฃwith the โEuropean โUnion in April to discuss potential deals in energy, minerals, and transit. While China โฃis currentlyโ Centralโข Asia’s largest individual trade partner, with bilateral trade reaching a record $94.8 billion in 2024, โฃthe EUโ remains the region’s largest foreign investor withโฃ its 27 member โstates.
Furtherโ illustrating this diversification, โPresident Mirziyoyev spoke with former US โpresident โDonald Trump on September 5th, inviting him โto visit Uzbekistan. Mirziyoyevโข previously visited the White House in 2018,where he โคreceivedโค praise from President Trump.