Chinese projects in Kyrgyzstan and Tajikistan

RUSSIA / FSU POLITICS - In Brief 01 Jul 2024 by Alex Teddy
China is the major investor in Central Asia. Russia's role in the five former Soviet republics in the region has declined in real and absolute terms. This has been accelerated since the Ukraine War began. However, it has not disappeared and Russia will still have some role in the region for decades. Tajikistan and Kyrgyzstan are the two poorest of the 15 former Soviet states. Tajikistan borders China and even ceded some of its land to China permanently. China still claims more Tajik territory as legally Chinese. Since 2010 China has been the biggest investor in Kyrgyzstan. It funded a power transmission line that connected the electric grids throughout the country. Not everyone likes the expansion of Chinese influence, and there were anti-Chinese protests in Kyrgyzstan. But Tajikistan and Kyrgyzstan have no alternative but investment from China. Almost no other country is interested. Chinese companies are updating energy and transport infrastructure in Tajikistan and Kyrgyzstan. Chinese firms are also buying up mineral resources. Deals between Chinese companies and companies in these countries are usually supported by loans from Chinese state-owned banks. This is part of the Belt and Road Initiative (BRI) that began in 2023. There are those who warn this is debt-trap diplomacy. It has worked to the disadvantage of countries in Africa that have agreed to it. On the other hand many roads, railroads, ports and airports would never have been built without the BRI. Few other countries wish to invest in Tajikistan and Kyrgyzstan. The countries have an unwelcoming investment environment. Rule of law is weak, and bureaucracy is very slow and inefficient. Security is not good. ...

Now read on...

Register to sample a report

Register
Sign-in
Forgot your password?
Copyright 2024 GlobalSource Partners. All rights reserved. This is prepared for GlobalSource Partners’ clients and may not be redistributed, reproduced, stored in a retrieval system, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of GlobalSource Partners. This is distributed simultaneously to our website and other portals used by GlobalSource Partners. The information herein was obtained from various sources and is believed to be reliable but GlobalSource Partners does not warrant its completeness or accuracy. Neither GlobalSource Partners nor any Country Analyst, officer or employee accepts any liability whatsoever for any direct, indirect or consequential damages or losses rising from any use of this or its contents.