China-Kazakhstan trade volume has jumped from $368 million in 1992 to $25.25 billion
Business cooperation between China and Kazakhstan is expected to experience rapid growth in the years ahead, as the two nations expand many programs to shore up regional connectivity, stoking the steady growth of foreign trade and new energy-related projects, experts and business leaders said.
As the year marks the 30th anniversary of the establishment of diplomatic ties between China and Kazakhstan, they said the two countries have not only helped ensure the stability of Eurasian production cooperation and the smooth operation of China-Europe freight train services, but also effectively addressed global energy security challenges at a time of increasing pressure on the global economy.
With improved connectivity projects such as the Trans-Caspian International Transport Route and new railway express services, the two countries should further strengthen their development strategies, and expand new areas for cooperation, especially in the fields of 5G, big data, digital finance, cross-border e-commerce and green energy, said Zhou Lei, a researcher specializing in regional economic development at the University of International Business and Economics in Beijing.
The Trans-Caspian International Transport Route is a rail freight corridor linking China and the European Union through Central Asia, the Caucasus, Turkiye and Eastern Europe, said the Tokyo-based Asian Development Bank Institute.
"The enhanced rail and road transportation networks between China and Kazakhstan will bring up a win-win situation as China has huge demand for imports from the Central Asian country. It will boost the job market and industrial upgrading in Kazakhstan," said Tian Dewen, deputy director of the Institute of Russian, Eastern European and Central Asian Studies at the Chinese Academy of Social Sciences in Beijing.
Central Asia, especially Kazakhstan, has served as a key gateway on the western route for China-Europe freight train services. As of July, more than 57,000 train journeys had been made through this transportation corridor, with cargo worth nearly $300 billion in 5.3 million twenty-foot equivalent unit containers. This service was launched in 2011.
The launch of China-Europe freight train services has shortened the time fivefold to transport goods between Kazakhstan and Europe, a report by the Chinese Academy of Social Sciences said.
China's trade with Kazakhstan expanded nearly 70 times from 1992 to 2021, with trade volume jumping from $368 million to $25.25 billion, data from the General Administration of Customs showed.
Thanks to their complementary trade structure, the two countries saw their trade value soar 19.3 percent on a yearly basis to $17.69 billion in the first seven months of 2022, while China's imports from Kazakhstan surged 38.5 percent year-on-year.
Crude oil, natural gas, minerals and agricultural products are Kazakhstan's main exports to China. China exports mainly manufacturing equipment, steel, vehicles, electronics, textiles, garments and household appliances to Kazakhstan.
China and Kazakhstan, among the first countries to jointly pursue cooperation under the framework of the Belt and Road Initiative, have implemented a series of projects with strategic significance, bringing benefits to their peoples and setting a convincing example for the international community, said Sultan Kinzhakulov, commercial counselor of the Kazakh embassy in China.
For instance, Shelek wind farm－the first green energy project jointly built by China and Kazakhstan－was put into operation on Tuesday, according to Chengdu Engineering Corp, a subsidiary of State-owned Power Construction Corporation of China and the project's contractor.
Located in Enbekshikazakh district of Almaty region, the wind farm is able to generate 230 million kilowatt-hours of electricity on an annual basis, cutting 206,000 metric tons of greenhouse gas emissions and saving the use of 89,000 tons of standard coal each year.
According to the Kazakh government, Shelek wind farm can effectively alleviate the shortage of power in southern Kazakhstan and promote the country's carbon reduction plans and power restructuring.
The project helped train a group of local people in wind power construction, operation maintenance and management. It not only boosted the local job market but also accumulated operational experience for the country's new energy projects in the future, said He Yanfeng, general manager of Chengdu Engineering Corp.
China International Water and Electric Corp, a subsidiary of State-owned China Three Gorges Corp, also delivered the construction project of the Turguson Hydropower Station to its client in Kazakhstan in August last year.
Located on the banks of the Turguson River, the station has a total installed capacity of 24.9 megawatts. It is the first cascade power station in the country and the first project of the China-Kazakhstan cooperation in hydropower under the framework of the BRI, its constructor said.
Despite the protracted COVID-19 pandemic and complicated international situation, the development of the BRI continues to demonstrate strong resilience and vitality, injecting dynamic impetus into global openness, cooperation and economic recovery, said Feng Yaoxiang, head of the trade and investment promotion department at the China Council for the Promotion of International Trade in Beijing.
Echoing this sentiment, Kuanysh Amantay, general representative in China of Kazakh Invest National Company JSC, the country's national investment promotion agency, said he hopes that Chinese and Kazakh companies will expand and deepen cooperation in the areas of petrochemicals, agriculture and logistics in the coming years.
In addition to the industrial projects in the priority areas listed by the government, projects exceeding $15 million are allowed to receive preferential policies in income tax, land tax and asset tax in Kazakhstan, he added.
Li Ziyue, an analyst with BloombergNEF, noted that Kazakhstan, as China's third-largest pipeline gas supplier after Turkmenistan and Russia, plays a key role in ensuring domestic gas supplies, especially when liquefied natural gas prices have surged to record highs this year.
The China-Central Asia Gas Pipeline, China's first transnational gas pipeline that runs from the border of Turkmenistan and Uzbekistan, passes through Uzbekistan and Kazakhstan and links up with China's West-to-East Gas Pipeline in Horgos, Northwest China's Xinjiang Uygur autonomous region, has delivered more than 400 billion cubic meters of natural gas to China over a period of more than 12 years, State-owned PipeChina West Pipeline Company said in June.
Apart from reinforcing infrastructure and energy cooperation with China, Kazakhstan introduced a visa-free entry policy for Chinese citizens in July. It allows them a continuous visa-free stay in the country of up to 14 days for business and travel purposes, as it hopes to further promote direct contacts between businesses and better utilize its potential for international tourist visits.