Business and Industry Cooperation Between China and Central Asia Marches Forward
The China-Central Asia Summit was held in Xian, Shaanxi during 18-19. This was Chinas first major home diplomatic event this year and the first on-site summit held between China and the five Central Asian countries in the 31 years since the establishment of diplomatic relations. This meeting not only summarized the long-term cooperation achievements between China and Central Asian countries, but also drew up a new blueprint for future cooperation and development.
During the summit, as witnessed by guests and entrepreneurs from China and the five Central Asian countries, the China Central Asian Entrepreneurs Committee was officially established, building a new high-quality platform and providing institutionalized guarantees for exchanges and cooperation between the business communities of China and the five Central Asian countries in multiple fields. It also marked a new level of business cooperation under the framework of the China-Central Asian working mechanism.
Deep integration of development strategies
The continuous deepening of China-Central Asia cooperation cannot be separated from the smooth cooperation between both sides in building the Belt and Road Initiative and integrating developmental strategies. The Central Asian countries were among the first to publicly support the Belt and Road Initiative and also engage in the joint construction and cooperation. Over the past decade, the cooperation between China and Central Asian countries in jointly building the Belt and Road has yielded fruitful results, benefiting all parties. Central Asia has also become a high-quality demonstration area for jointly building the Belt and Road. According to the latest consensus reached by the heads of China and the Central Asian countries, all parties will take the 10th anniversary of the joint construction of the Belt and Road Initiative as a new starting point, and will deepen the connections created by the Belt and Road Initiative with Kazakhstan’s new aBright Road” economic policy, Kyrgyzstans “National Development Program before 2026”，Tajikistan’s “National Development Strategy before 2030”, Turkmenistan’s aRevival of the Silk Road” strategy, Uz-bekistans “2022-2026 Development Strategy” and other initiatives and development strategies proposed by the five Central Asian countries. Both sides will also promote practical cooperation in various fields and form a pattern of deep complementary development and win-win cooperation.
“The China Central Asia Summit advocated for by President Xi Jinping and the leaders of the five Central Asia countries focused on building a community with a shared future for China and Central Asia. These countries have charted a grand blueprint for future cooperation between China and Central Asian countries, pointing the way forward and providing fundamental guidance for the next steps of cooperation in the business community. The establishment of the China Central Asian Entrepreneurs Committee is not only an action to implement the important consensus of the China Central Asia Summit, but also a vivid practice for the business community to build a community with a shared future for China and Central Asia. The CCPIT is willing to work with all parties to build the committee into a major channel for regional business exchanges and cooperation, as well as a main platform for providing comprehensive services to enterprises. It will firmly grasp the development opportunities provided by China and Central Asian countries in terms of agricultural product trade, production capacity, green energy, the digital economy and other fields, promote extensive integration of enterprises, and continuously facilitate trade and investment in various countries, in order to enlarge the benefits of win-win cooperation,” said CCPIT Chairman Ren Hongbin at the founding ceremony of the committee.
It is said that the China-Central Asian Entrepreneurs Committee was jointly initiated and established by the CCPIT, the National Chamber of Entrepreneurs of Kazakhstan <<Atameken,, the Kyrgyz Chamber of Commerce, the Tajikistan Chamber of Commerce, the Turkmenistan Chamber of Commerce, and the Uzbekistan Chamber of Commerce. It was set up to help strengthen the businesses cooperation of the six countries in the areas of trade and investment, the digital economy, green development and inter-connectivity through information exchange, reciprocal group visits, exhibition forums, training and other means. It will promote the connections between businesses and governments, between domestic and foreign cooperation, and between supply and demand.
Raimbek Batalov, President of Kazakhstan’s National Chamber of Entrepreneurs “Atameken”, said that in September last year, President Xi Jinping chose Kazakhstan as his first visiting destination after the COVID-19 happened. During this meeting, many consensuses were reached with President Tokayev on the development of bilateral relations. Two days ago, both leaders met again to set goals and draw blueprints for the next phase of cooperation in various fields between the two countries. aKazakhstan has high hopes and full expectations for strengthening cooperation with all parties under the China-Central Asia mechanism. It is believed that the China Central Asian Entrepreneurs Committee that was established today will become an important platform for effective and mutually beneficial cooperation between Chinese and Central Asian business communities. Kazakhstan is willing to work hand in hand with all parties to extend cooperation in areas such as tourism, agriculture, energy, mineral products, machinery manufacturing, and connectivity, and jointly move towards a brighter futurehe said.
The President of the Kyrgyz Chamber of Commerce and Industry Sariev believes that cooperation between China and Central Asian countries brings enormous opportunities for Kyrgyzstan’s economic and social development, especially the construction of the China-Kyr-gyzstan-Uzbekistan Railway, which will greatly stimulate Kyrgyzstan’s economic growth. The establishment of the China Central Asian Entrepreneurs Committee will also promote investment and trade cooperation between China and Kyrgyzstan and bring it to a new level. Currently, Kyrgyzstan is implementing policies to attract more foreign investment, striving to create a favorable and predictable investment environment for foreign enterprises by offering preferential policies regarding taxation and labor.
The President of the Tajikistan Chamber of Commerce and Industry Jumakhonzoda said that in recent years, the comprehensive strategic partnership between China and Tajikistan has developed rapidly, and cooperation in multiple fields has achieved fruitful results. At present, China is one of Tajikistan’s main trading partners and its largest investor. President Rahmon was invited to visit China and witnessed the signing of 25 bilateral cooperation documents with President Xi Jinping. These documents cover key areas of cooperation between the two sides. “I believe that the China Central Asian Entrepreneurs Committee will become an important platform for promoting practical cooperation between China and Tajikistan, as well as other Central Asian countries and China. Tajikistan looks forward to strengthening our cooperation with China in areas such as the agricultural product trade, deep processing of raw materials, and technological innovation,” he said.
Turkmenistans business representative to China Baitrov said that trade and investment cooperation between China and Central Asian countries is of great strategic significance. All parties have complementary advantages in resource endowments, production capacity, technology, and other aspects, and the potential for cooperation is enormous. Over the years, Central Asian countries have actively participated in the joint construction of the Belt and Road and achieved fruitful results. It is the right time for the business communities on both sides to jointly establish the China Central Asian Entrepreneurs Committee, which will be conducive to enhancing communication and exchange among entrepreneurs from various countries, deeply tapping into the potential for regional economic cooperation, and opening up a bright future for mutual development.
Laziz Kudratov, Uzbekistan’s Minister of Investment, Industry and Trade, said that Uzbekistan attaches great importance to developing economic, trade and investment cooperation with China and other Central Asian countries. In recent years, Uzbekistan has taken a series of policy measures to facilitate trade and investment, such as lifting foreign exchange restrictions and reducing corporate income tax rates. It also aims to create a favorable business environment for foreign enterprises. “The China Central Asian Entrepreneurs Committee has established an important cooperation platform for the business community on both sides, reflecting the urgent need for such cooperation. It will enhance communication and exchange between the business community, expand cooperation areas, and strengthen practical cooperation among enterprises,w he elaborated.
Strong momentum for trade and business cooperation
In 2022, China’s trade volume with the five Central Asian countries reached a record high of USD 70.2 billion. In the first two months of this year, the trade volume between China and the five Central Asian countries increased by 22% year-on-year, maintaining a strong development momentum.
According to Minister of Commerce VWng Wentao, in 2022, Chinas imports of agricultural, energy, and mineral products from Central Asian countries increased by over 50% year-on-year, while exports of mechanical and electrical products to Central Asian countries increased by 42% year-on-year, resulting in a more optimized structure for bilateral trade. As of the end of 2022, Chinas direct investment stock in the five Central Asian countries had reached nearly USD 15 billion. Both sides have jointly implemented a number of cooperation projects in fields such as oil and gas mining, processing and manufacturing, connectivity, and digital technology, bringing tangible benefits to people from all the countries involved.
Wang Wentao emphasized that China is willing to work with all parties to promote the development of new forms of trade and investment, share the dividends of its huge market and open development, and implement a batch of cooperation projects. It is imperative to allow innovation to empower development, carry out cooperation in the field of digital trade, and accelerate the development of a green, low-carb on, and circular economy. He also stated the need to ensure the security and stability of regional industrial and supply chains, promote infrastructure construction through various means, and jointly maintain energy and food security. Another priority is continuing to maintain the multilateral trading system, strengthen cooperation under the framework of WTO, and support the accession of Central Asian countries to the WTO. It is also important to leverage geographical advantages to create new growth points for practical cooperation in economic and trade cooperation among border areas.
According to a representative of the Eurasian Department of the Ministry of Commerce, as of now, China’s direct investment stock in the five Central Asian countries has exceeded USD 15 billion. The joint implementation of a large number of projects is underway, including the chemical complex in Atyrau State, Kazakhstan, the new North-South Highway in I^rgyzstan, Tajikistans power grid, natural gas production in Turkmenistan, and the Anglian-Pap railway tunnel in Uzbekistan, in order to assist with the upgrading of various industries and bring about tangible benefits to people from all of these countries.
Renewable energy will be one of the key areas of future development for cooperation between China and Central Asia. “The five Central Asian countries are rich in clean energy resources and desire green transformation and development. We will actively implement the spirit of the summit and increase our investment in green energy,w said Fang Yanshui, General Manager of China Machinery Industrial Engineering Group Co., Ltd.
Kirbasheva, Chairman of the Energy Committee of the Kyrgyz National Chamber of Commerce and Industry, highlighted the fact that renewable energy is a major competitive advantage of Kyrgyzstan. “We are able to sign a 20-ye ar agreement with investors on renewable energy and formulate related laws to encourage the development of the new energy industry. New energy enterprise will enjoy duty-free treatment,” he said.
According to Tai Nenglun, Deputy General manager of China Gezhouba Group International Engineering Co., Ltd., the total value of projects invested in or completed by China Energy Engineering Group has reached USD 4 billion. “Central Asia is the market that we value most. We hope to select a number of whole industry chain cooperation projects and add them to the bilateral or multilateral cooperation list, in order to give full play to the leading role of such major projects. I believe that the convening of the China-Central Asia Summit, including the establishment of the China Central Asia Entrepreneurs Committee, will provide new impetus for the high-quality construction of the Belt and Road.”
“The establishment of the China Central Asian Entrepreneurs Committee has opened up a new window for us to connect with the advantageous industries and high-quality enterprises of the five Central Asian countries. It provides a long-term platform for communication, exchange, and information sharing at the enterprise level, and brings us closer to the markets of Central Asia, which helps stabilize the whole business chain,” said Ren Xiaolin, General Manager of Chang’anhao (Xian) International Trade Co., Ltd., a subsidiary of Shaanxi Logistics Group Co., Ltd.
Ding Fen, a representative of Xinjiang Bolian Color Printing and Packaging Co., Ltd. said: “Our company mainly engages in food packaging related products, and has been working with businesses from Central Asian countries for more than 20 years. In recent years, thanks to the promotion of the Belt and Road Initiative, the foreign trade environment has become much better, and the trade volume has also increased significantly. It is believed that in the future, with the establishment of the China Central Asian Entrepreneurs Committee, our company will have closer ties and exchanges with the Silk Road countries, and the trade channels will be further enlarged. Our company will also achieve better growth.