FX.co ★ China unveils ambitious development plan for Central Asia

According to Reuters, Chinese President Xi Jinping has unveiled an ambitious plan for Central Asia’s development. It includes a number of important missions, from building infrastructure to expanding trade ties. Thereby, China is trying to take on the role of a leader in the region, which is traditionally Russia's sphere of influence.

China intends to implement development strategies with several countries, primarily Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan. The Chinese leader is ready to provide assistance in modernization, infrastructure construction, and mutually beneficial trade.

The five Central Asian states in turn offer China a network of alternative routes to transport essential goods such as fuel, food, and other commodities. However, they can be used only in unforeseen situations and in case of disrupted logistics.

Under the agreement, the parties will respect and support each other in defending core interests such as sovereignty, independence, national self-determination, long-term development, law enforcement, and defense capabilities.

For efficient cooperation, China will reportedly upgrade bilateral investment agreements and boost cross-border traffic volume. This will help create more jobs, launch the construction of production facilities, and bolster tourism. The world's second-largest economy is set to provide Central Asian countries with financial support amounting to 26 billion yuan ($3.8 billion). This is enough to realize large-scale projects, preliminary estimates show.

Notably, two-way trade between China and Central Asian states reached $70 billion in 2022. China's foreign trade turnover with Kazakhstan accounted for $31 billion.

At present, China supports the construction of an international transport corridor across the Caspian Sea and the development of China-Europe freight train hubs.