Mengkewuliji, PhD Student

Taras Shevchenko National University of Kyiv, Kyiv, Ukraine

DOI: https://doi.org/10.17721/1728-2640.2021.148.7


DEVELOPMENT OF CHINA-KAZAKHSTAN AND CHINA-UZBEKISTAN TRADE AND ECONOMIC RELATIONS (2013-2020): A COMPARATIVE ANALYSIS


This paper explores the development of trade and economic relations between China and Kazakhstan, and China and Uzbekistan since the introduction of the "One Belt – One Road" initiative in 2013 until the economic slowdown in 2020. The author also compares the different ways in

which China–Kazakhstan and China–Uzbekistan trade and economic relations were developed.

The research reveals a significant role of the "One Belt – One Road" initiative in the rapid growth of bilateral cooperation between China and Kazakhstan, and China and Uzbekistan in the spheres of trade, infrastructure development, finance and energy. Kazakhstan and China put the emphasis on infrastructure development and trade, including the manufactured products. Uzbekistan and China focused on trade in energy resources. China's investment in both Central Asian countries grew equally, however Kazakhstan received more Chinese loans than Uzbekistan. China provided loans to both countries only on condition of their cooperation with Chinese companies operating in Central Asia.

New transit routes were built within the framework of the "One Belt – One Road" initiative. China, Kazakhstan and Uzbekistan implemented joint highways projects such as the Kabul and Trans-Caspian corridors. While China and Kazakhstan developed continental infrastructure projects such as "Western China-Western Europe", China and Uzbekistan focused more on local programs such as the construction of the Kamchik tunnel.

Kazakhstan and Uzbekistan pursued different energy policies toward China. Kazakhstan was developing equal cooperation with China and Russia in energy sphere. Uzbekistan tried to pursue a policy of energy independence, and when it failed, it began to work more closely with China. Other significant differences between Kazakhstan and Uzbekistan included their positions regarding the financial structures of the Shanghai Cooperation Organization. During discussion of the SCO Development Bank project, Uzbekistan and Kazakhstan supported Chinese and Russian projects respectively.

Keywords: foreign relations, China, Kazakhstan, Uzbekistan, trade and economic relations, Shanghai Cooperation Organization.

Submitted: 25.02.2021

Download Full Text

References:

1. Aminjonov, F. (2016). Uzbekistan's Energy System: No Longer Self-Sufficient, Limitations of the Central Asian Energy Security Policy: Priorities and Prospects for Improvement. London: C. Hurst and company, 2-4.

2. Clinton H. (2011). Remarks at the New Silk Road Ministerial Meeting. U.S. Department of State. September 22, 2011. URL: https://bit.ly/33P27y1

3. Cooley, A. (2015). Russia and China in Central Asia, Norwegian Institute for International Affairs (NUPI). Policy Brief, 26, 1-4. URL: https://www.jstor.org/stable/resrep08013.

4. Dadabaev, T. (2019). China's Inroads into the Infrastructure, Resource, and Manufacturing Sectors. Chinese, Japanese, and Korean

Inroads into Central Asia: Comparative Analysis of the Economic Cooperation Roadmaps for Uzbekistan. East-West Center Report, 28–36.

5. Economic Watch: Rosy prospect ahead for China-Uzbekistan relations. (2019). Xinhua.net. URL: https://bit.ly/3hwn9tt

6. Gelvig, S. (2020). China – Kazakhstan Economic Cooperation and One Belt One Road Construction. Science Review, 30(3), 42-49.

7. Gussarova, A., Aminjonov F., Khon Y. (2017). The Eurasian Economic Union and the Silk Road Economic Belt. Competition or Convergence? Implications for Central Asia. Almaty: Friedrich-Ebert-Stiftung.

8. Juraev, S. (2009). The Uzbekistan's Role in Central Asia, International Issues & Slovak Foreign Policy Affairs, 18(2), 55–69.

9. Kassenova, N. (2017). China's Silk Road and Kazakhstan's Bright Path: Linking Dreams of Prosperity. Asia Policy, 24, 110-116.

10. Liao, J. (2006). A Silk Road for Oil: Sino-Kazakh Energy Diplomacy. The Brown Journal of World Affairs, 12(2), 39-51.

11. Omelicheva, M., Du, R. (2018). Kazakhstan's Multi-Vectorism and Sino-Russian Relations. Insight Turkey, 4, 95-110.

12. Qoraboyev, I. (2018). The Belt and Road Initiative and Uzbekistan's New Strategy of Development: Sustainability of mutual relevance and positive dynamics. Uzbek Journal of Legal Studies, (2), 15. URL: https://bit.ly/3tWEdeu

13. Saltybayev, Y. (2018). BRI and Kazakhstan: Challenges and Outlooks of China's Grand Strategy in Central Asia, Horizons: Journal of International Relations and Sustainable Development, 10, 76-85.

14. Serikkaliyeva, A. & Amirbek, A. & Batmaz, E. (2018). Chinese Institutional Diplomacy toward Kazakhstan. Insight Turkey, 4, 129-152.

15. Serikkaliyeva, A. (n.d.). Chinese View on the Expansion of the Shanghai Cooperation Organization. Scientific E-journal "edu.ehistory.kz", 9(1). URL: https://bit.ly/2QnYgou.

16. The Address of President of the Republic of Kazakhstan N. Nazarbayev to the people of Kazakhstan. (2014, November 11). Official Site of the President of the Republic Kazakhstan. URL: https://bit.ly/3uUeTqW.

17. Honcharuk, A. (n. d.). Rivalry Between Russia and China for Influence in the Central Asia. Conclusions for Ukraine. URL: https://bit.ly/3eS3r9G. [in Ukrainian].

18. Hu, Venli (2018). The China-Kyrgyzstan-Uzbekistan Highway Will Be Officially Opened for Traffic on the 25th. Xinhua Silk Road. URL: https://www.imsilkroad.com/news/p/85521.html [In Chinese]

19. Agreement Between The Republic of Uzbekistan and the People's Republic of China on Friendship and Cooperation. Tashkent, September 9, 2013. (2013). URL: https://lex.uz/acts/2510798 [In Russian]

20. Gas Exports to Russia Suspended, to China Reduced by Three Times. (2020). Gazeta.UZ. 16.07.2020. URL: https://www.gazeta.uz/ru/2020/07/16/gas-export/.

21. Kazakhstan and China Have Signed a Number of Cooperation Agreements. (2015). Economic and Commercial Consulting Department of the Chinese Embassy in Kazakhstan. 09.02.2015. URL: https://bit.ly/3om1Agx. [In Chinese]

22. China Is the Largest Investor in Kazakhstan's Transport Infrastructure. (2018). Economic and Commercial Consulting Department of the Chinese Embassy in Kazakhstan. 26.11.2018. URL: https://bit.ly/3fjCWsK. [In Chinese]

23. China and Kazakhstan Have Signed a Joint Declaration and a Number of Cooperation Agreements. (2014). Economic and Commercial Consulting Department of the Chinese Embassy in Kazakhstan. 23.05.2014. URL: https://bit.ly/3hwfN9b. [In Chinese]

24. China And Kazakhstan Need to Create an "Economic Corridor of the Silk Road" – President of the People's Republic of China Xi Jinping. (2013). Ministry of Foreign Affairs of China. 7.09.2013. URL: https://www.fmprc.gov.cn/rus/zxxx/t1075402.shtml [In Chinese]

25. Mengkewuliji. (2020) China's Policy in Central Asia (1992-1997). Hileya. Scientific Bulletin, 2 (153), 117-123. [in Ukrainian].

26. Mikhaylov, A. & Knyazeva, Ye. (2015). Development Bank in the structure of the Shanghai Cooperation Organization. National interests: priorities and security, 39 (324), 38-47 [In Ukrainian]

27. Mingazutdinova, G. (2014) Kazakhstan in the U.S. Foreign Policy Interests (Late 1990 – Early XXI cent.). Bulletin of Taras Shevchenko National University of Kyiv. History, 4, 26-29 [In Ukrainian]

28. Mingazutdinova, G. (2014). Hillary Clinton's "New Silk Road": Some Dark Sides of Action Plan in Central Asia After 2014. Social and Human Sciences. Polish-Ukrainian scientific journal. 02 (02), 77-86. [In Ukrainian]

29. On the Signing of the Cooperation Plan for the Coupling of the New Economic Policy "Nurly Zhol" and the Construction of the "Silk Road Economic Belt" Between the Government of the Republic of Kazakhstan and the Government of the People's Republic of China (Changes of August

31, 2016). (2016). Tengrinews. URL: https://bit.ly/3eS3r9G [in Russian].

30. The Volume of Trade Between Uzbekistan and China is 7.62 Billion US Dollars in 2019. (2020). Economic and Commercial Consulting Department of the Chinese Embassy in Uzbekistan. 23.01.2020. https://bit.ly/33N9ZQA. [in Chinese].

31. The first cargo went: Turkey and China connected with a "historical journey". (2020). EurAsiaDaily. 20. 12. 2020. URL: https://bit.ly/3fm8ZZb [in

Russian].

32. Platinum country – Uzbekistan. (2018). Official website of the China National Petroleum Corporation. 10.16.2018. URL: https://bit.ly/33MNyuO [in Chinese].

33. Russia allocates 200 million rubles for the feasibility study of the China-Kyrgyzstan-Uzbekistan railway. (2019). Zheenbekov. Reporter.kg.25.11.2019. URL: https://bit.ly/3tVgsU2. [in Russian].

34. Russia proposed to create a Development Bank within the SCO. (2014). AEI Prime. URL: https://bit.ly/3eR4TsY [in Russian].

35. Ruslan Izimov: The role and place of Uzbekistan in the Central Asian policy of China. (2016). Central Asian Bureau for Analytical Reporting. 02. 03. 2016. URL: https://bit.ly/3hxbkTO [in Russian].

36. Action Strategy for Five Priority Areas of Development of the Republic of Uzbekistan in 2017-2021. (n. d.). Action Strategy for Five Priority Areas of Development of the Republic of Uzbekistan in 2017-2021. https://bit.ly/3yf6mkp [in Russian].

37. Suyunbaev, M. & Mamitova, A. (1998). Natural resources as a factor of Central Eurasia development. Central Asia and Caucasus, 1. URL: https://bit.ly/3ovmaLy [in Russian]

38. Taran, M. (2009). Energy Security and Challenges to China's Foreign Policy at the Beginning of the 21st Century. Chinese Civilization: Traditions and Modernity. 58-61. [In Ukrainian]

39. In 2013 the Volume of Bilateral Trade Between China and Uzbekistan Exceeded $ 4.5 Billion for the First Time, Increasing by 57.6% per Year. Economic and Commercial Consulting Department of the Chinese Embassy in Uzbekistan. URL: https://bit.ly/2RozQvE [in Chinese].

40. Chekalenko, L. (2018). Implementation of the Economic Silk Road Concept in Central Asia. In: O. Oliinyk, (Ed.), Ukraine – China – 25 years of cooperation: results and prospects. "One belt, one way", Kyiv: The State Institution "Institute of World History of the National Academy of Sciences of Ukraine". Pp. 158-172 [in Ukrainian].