China's Xi unveils grand development plan for Central Asia

[beijingwalker]

China's Xi unveils grand development plan for Central Asia​

By Andrew Hayley
May 19, 20232:10 PM GMT+8

Chinese President Xi Jinping speaks at the round table during the China-Central Asia Summit in Xi'an, Shaanxi province, China, 19 May 2023. MARK CRISTINO/Pool via REUTERS

XIAN, May 19 (Reuters) - Chinese President Xi Jinping on Friday unveiled a grand plan for Central Asia's development, from building infrastructure to boosting trade, taking on a new leadership role in a region that has traditionally been a Russian sphere of influence.

China is ready to coordinate development strategies with Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan, and promote the modernisation of all, Xi said in an address to a China-Central Asia Summit in northwest China.

"This summit has added new impetus to the development and revitalisation of the six counties, and injected strong positive energy into regional peace and stability," Xi said later at a press conference with his Central Asian counterparts.

"We will jointly foster a new paradigm of deeply complementary and high-level win-win cooperation."

With its engagement, China has put itself at the forefront of the race for political influence and energy assets in the resource-rich region, with Russia distracted by its war in Ukraine and the withdrawal of U.S. forces from Afghanistan diminishing the U.S. presence in the region.

The five former Soviet republics, with a network of trade corridors, offer China alternative routes to transport fuel, food and other commodities in the event of disruptions elsewhere.

The pledges of support and cooperation at the two-day summit will present a contrast to a "negative" image of China invoked at a summit of Group of Seven leaders in Japan from Friday.

China's support for Central Asia also appear to be a counter-weight to U.S. accusations of its coercive diplomacy.

Xi said China and the Central Asian countries should deepen trust and offer "clear and strong support" on core interests such as sovereignty, independence, national dignity and long-term development.

He did not mention Ukraine, which like the Central Asian nations, was part of the Soviet Union.

"China is ready to help Central Asian countries improve their law enforcement, security, and defence capability construction," he said.

TRADE AND INVESTMENT​

China would also upgrade bilateral investment agreements and increase cross-border freight volume with the region, Xi said.

It will encourage Chinese-funded businesses in Central Asia to create more jobs, build warehouses, and launch a special train service aimed at promoting tourism, he added.

"To bolster our cooperation and Central Asian development, China will provide Central Asian countries with a total of 26 billion yuan ($3.8 billion) of financing support and grants," Xi said.

Two-way trade between China and Central Asia hit a record $70 billion last year, with Kazakhstan leading with $31 billion, as China seeks deeper links in its quest for greater food and energy security.

Xi said the building of Line D of the China-Central Asia natural gas pipeline should be accelerated.

He also called on China and Central Asia to increase their oil and gas trade, develop energy cooperation across industrial chains, and boost cooperation on new energy and the peaceful use of nuclear energy.

In the longer term, China supports construction of a cross-Caspian Sea international transport corridor, and would strengthen the construction of transport hubs of China-Europe freight train services, Xi said.

China's Xi unveils grand development plan for Central Asia

Chinese President Xi Jinping on Friday unveiled a grand plan for Central Asia's development, from building infrastructure to boosting trade, taking on a new leadership role in a region that has traditionally been a Russian sphere of influence.

www.reuters.com

 

[etylo]

Central Asia and Southeast Asia are two regions that matter to China becos of proximity, trade, energy and border security, China should pay more attentions to them. China should waste less energy and money on regions such as Africa that has none critical consequences for China unlike CA and SEA.

 

[FuturePAF]

Central Asia and Southeast Asia are two regions that matter to China becos of proximity, trade, energy and border security, China should pay more attentions to them. China should waste less energy and money on regions such as Africa that has none critical consequences for China unlike CA and SEA.

If China doesn’t speed up development in Central Asia, especially in mining, the U.S. is going to fill the void soon enough.

And interesting video of US policy for the region by an ambassador to the region and deputy Secretary of State for the region.

U.S Foreign Policy Challenges in Central Asia: A Practitioner's View

Former U.S. Deputy Secretary of State for Central Asia and former Ambassador to Belarus, Uzbekistan, and Kazakhstan George Krol will discuss the challenges t...

www.youtube.com

 

[beijingwalker]

If China doesn’t speed up development in Central Asia, especially in mining, the U.S. is going to fill the void soon enough.

And interesting video of US policy for the region by an ambassador to the region and deputy Secretary of State for the region.

U.S Foreign Policy Challenges in Central Asia: A Practitioner's View

Former U.S. Deputy Secretary of State for Central Asia and former Ambassador to Belarus, Uzbekistan, and Kazakhstan George Krol will discuss the challenges t...

www.youtube.com

US fled Afghanistan and Iraq, China quickly filled the void, US now doesn't have the means to develop other countries, it doesn't even have the means to develop itself.

 

[FuturePAF]

US fled Afghanistan and Iraq, China quickly filled the void, US now doesn't have the means to develop other countries, it doesn't even have the means to develop itself.

Look at the tens of billions being poured into Ukraine, while neglecting domestic needs.

When it’s for strategic purposes, the US checkbook is always open. If not the government, many US companies will move in.

For the US, Central Asia is the last former Russian sphere that they can easily intervene in and its right up on China’s border. The risk is there if China doesn’t move quicker.

This could be the first step to finally defeating Russia and making it capitulate to the west. Eventually allowing a western backed government in a post-Putin Russia to allow Western forces on China’s northern border as well.

 

[beijingwalker]

Look at the tens of billions being poured into Ukraine, while neglecting domestic needs.

When it’s for strategic purposes, the US checkbook is always open.

US can only sponsor wars, but when it comes to country building or rebuilding, US plays no role at all. Chinese engineers build up infras all around the world and you don't see Americans in this sector. Not all countries need US to fight wars.

 

[FuturePAF]

US can only sponsor wars, but when it comes to country building or rebuilding, US plays no role at all. Chinese engineers build up infras all around the world and you don't see Americans in this sector. Not all countries need US to fight wars.

US companies do this on a commercial basis. The US government when it gives aid it usually funds local companies to carry out these projects.

 

[beijingwalker]

US companies do this on a commercial basis. The US government when it gives aid it usually funds local companies to carry out these projects.

Besides infrastructure building, Chinese companies also do business on commercial basis

 

[StraightEdge]

I don't get these headlines anymore - "China's Xi unveils..."
How many Xi's exist that you need to mention "China's Xi" ? I don't see anyone saying "US's Biden falls..." Everyone knows when the news says Xi, Biden, Modi, Trudeau etc.,

 

[FuturePAF]

Besides infrastructure building, Chinese companies also do business on commercial basis

View attachment 955817

It’s not about building infrastructure, it’s actual business deals, such as mining. What percentage of the total mining do Chinese companies carry out in Central Asia? And what percentage of future mining contracts are Chinese companies are expected to get?

 

[beijingwalker]

It’s not about building infrastructure, it’s actual business deals, such as mining. What percentage of the total mining do Chinese companies carry out in Central Asia? And what percentage of future mining contracts are Chinese companies are expected to get?

The EU claims that it is the biggest investor in Central Asia. But it is the largest investor in Kazakhstan only, which is the biggest economy in the region, and most European investment there has been directed towards the energy sector. Kazakhstan is considered less dependent on China compared to other countries in Central Asia. Although China was not among the top five investors in Kazakhstan in 2021–22, it is still the country’s biggest trading partner.

The other four countries in Central Asia have received most of their FDI from China. China’s investment in the region has been more diverse than Europe’s. According to statistical reports in 2021, China’s investment in Uzbekistan reached US$2.2 billion. This was followed by Russia — US$2.1 billion — and Turkey — US$1.18 billion. China’s investment in Tajikistan accounted for about 62 per cent of total inward FDI. As for Kyrgyzstan, 27 per cent of FDI was from China. There are no exact statistics for Turkmenistan, but according to some sources, China remained the biggest investor in 2021. As Chinese businesses steadily enter many sectors such as telecommunications, industry, manufacturing, construction and services, the influence of Chinese companies is becoming ubiquitous.

 

[FuturePAF]

After a year of record oil profits, what a $5-10 Billion investment spread over multiple US oil and gas companies to go into mining.

 

[etylo]

If China doesn’t speed up development in Central Asia, especially in mining, the U.S. is going to fill the void soon enough.

And interesting video of US policy for the region by an ambassador to the region and deputy Secretary of State for the region.

U.S Foreign Policy Challenges in Central Asia: A Practitioner's View

Former U.S. Deputy Secretary of State for Central Asia and former Ambassador to Belarus, Uzbekistan, and Kazakhstan George Krol will discuss the challenges t...

www.youtube.com

Yeah, Biden is matching up to what Xi is doing in CA after China and CA countries met in Xian months ago. I dont know if Russia will let US penetrate deeply into CA though, its Russia's backyard esp militarly and politically.

 

[Abdul Rehman Majeed]

China's Xi unveils grand development plan for Central Asia​

By Andrew Hayley
May 19, 20232:10 PM GMT+8

Chinese President Xi Jinping speaks at the round table during the China-Central Asia Summit in Xi'an, Shaanxi province, China, 19 May 2023. MARK CRISTINO/Pool via REUTERS

XIAN, May 19 (Reuters) - Chinese President Xi Jinping on Friday unveiled a grand plan for Central Asia's development, from building infrastructure to boosting trade, taking on a new leadership role in a region that has traditionally been a Russian sphere of influence.

China is ready to coordinate development strategies with Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan, and promote the modernisation of all, Xi said in an address to a China-Central Asia Summit in northwest China.

"This summit has added new impetus to the development and revitalisation of the six counties, and injected strong positive energy into regional peace and stability," Xi said later at a press conference with his Central Asian counterparts.

"We will jointly foster a new paradigm of deeply complementary and high-level win-win cooperation."

With its engagement, China has put itself at the forefront of the race for political influence and energy assets in the resource-rich region, with Russia distracted by its war in Ukraine and the withdrawal of U.S. forces from Afghanistan diminishing the U.S. presence in the region.

The five former Soviet republics, with a network of trade corridors, offer China alternative routes to transport fuel, food and other commodities in the event of disruptions elsewhere.

The pledges of support and cooperation at the two-day summit will present a contrast to a "negative" image of China invoked at a summit of Group of Seven leaders in Japan from Friday.

China's support for Central Asia also appear to be a counter-weight to U.S. accusations of its coercive diplomacy.

Xi said China and the Central Asian countries should deepen trust and offer "clear and strong support" on core interests such as sovereignty, independence, national dignity and long-term development.

He did not mention Ukraine, which like the Central Asian nations, was part of the Soviet Union.

"China is ready to help Central Asian countries improve their law enforcement, security, and defence capability construction," he said.

TRADE AND INVESTMENT​

China would also upgrade bilateral investment agreements and increase cross-border freight volume with the region, Xi said.

It will encourage Chinese-funded businesses in Central Asia to create more jobs, build warehouses, and launch a special train service aimed at promoting tourism, he added.

"To bolster our cooperation and Central Asian development, China will provide Central Asian countries with a total of 26 billion yuan ($3.8 billion) of financing support and grants," Xi said.

Two-way trade between China and Central Asia hit a record $70 billion last year, with Kazakhstan leading with $31 billion, as China seeks deeper links in its quest for greater food and energy security.

Xi said the building of Line D of the China-Central Asia natural gas pipeline should be accelerated.

He also called on China and Central Asia to increase their oil and gas trade, develop energy cooperation across industrial chains, and boost cooperation on new energy and the peaceful use of nuclear energy.

In the longer term, China supports construction of a cross-Caspian Sea international transport corridor, and would strengthen the construction of transport hubs of China-Europe freight train services, Xi said.

China's Xi unveils grand development plan for Central Asia

Chinese President Xi Jinping on Friday unveiled a grand plan for Central Asia's development, from building infrastructure to boosting trade, taking on a new leadership role in a region that has traditionally been a Russian sphere of influence.

www.reuters.com

It is great to see that China is finally keeping Russia out of these alliances.

Russia is about to get defeated by NTAO in Ukraine and will be balkanized shortly.

China should prepare plans to annex parts of Russia east of the Ural mountains.

 

[FuturePAF]

Yeah, Biden is matching up to what Xi is doing in CA after China and CA countries met in Xian months ago. I dont know if Russia will let US penetrate deeply into CA though, its Russia's backyard esp militarly and politically.

Russia and Iran may try to block efforts across the Caspian, which is why the Uzbeks are leading the effort for the Trans-Afghan Railway. Russia and Iran are both being confronted by the west more vociferously these days, so their acquiescence to western transit over the Caspian will be limited to the bare minimum.

Pakistan being at the end of the route and in dire economic straits may be compelled to go along with any initiatives that build it back up to the west’s only reliable access to Central Asia. The Afghans, seeking international and especially western recognition, will also need to go along with access.

If China doesn’t compete for projects along this corridor, it will go to western companies, at the expense of Chinese efforts and decades of investment. The success of BRI depends on Central Asia. Russia is also having trouble giving Central Asians jobs. If China can Integrate the Central Asian (total population of only 80 million), Afghan (total population of only 40 Million), and a sizable portion of the Pakistani workforce (total population of ~250 million) into Chinese industrial enterprises along the route, it could significantly push back on any other powers influence in the region, and create the profits to be exported via Gwadar or over land to Chinese ports on the Chinese coast.

9 million Central Asians work in Russia. If China could employ an equal number inside Central Asia itself, in renewed agriculture as well as mining efforts, it could go along way in gaining influence.

If China helps Central Asian efforts to rebuild the Aral Sea (through small and medium dams in Afghanistan and Central Asia, holding and saving water to release into the sea) , it could also go a long way in building up agriculture and absorbing more of the excess labor at relatively low cost.

If Chinese mining companies could even employ a million Afghans it could go a long way in that countries ties with China. In Pakistan, relocating those industrial SEZs and employing even 5 million, akin to what a GCC country could employ, would be the equivalent size of a diaspora in any country, and would not only provide wages but transfer management expectations across multiple industries.

Post-Soviet Labor Migrants in Russia Face New Questions amid War in Ukraine

Millions of immigrants fill key sectors in Russia’s economy, help offset its demographic challenges, and support origin communities, particularly in Central Asia. Since Russia's invasion of Ukraine, many have also been pressured into joining the military, and meanwhile face continued...

www.migrationpolicy.org