China brings cash to former Soviet republics in bid to win favour with Central Asian ‘stans’
- New investments and agreements illustrate how deals between China and Central Asia are being increasingly prioritised following President Xi Jinping’s visit
- China could be looking for ‘a new Silk Road’, the ancient Eurasian trade network that bypassed what’s now Russia to reach parts of Europe
China is manoeuvring to play a more pivotal role in Central Asia, as new investments and agreements further consolidate relationships in the wake of President Xi Jinping’s first overseas trip since the coronavirus pandemic began, analysts say as the world’s second-largest economy re-evaluates its trade ties amid rising geopolitical tensions and decoupling calls.
China is a vast, fast-growing market for Central Asia’s exports of commodities, as well as a source of manufacturing, technology and investment capital.
The region also guarantees at least 15 per cent of China’s natural gas supply.
The landlocked and relatively unadvanced countries of Central Asia need China’s money to grow, said Alexander Vuving, a professor with the Daniel K. Inouye Asia-Pacific Centre for Security Studies in Hawaii.
“We are living at a very critical geopolitical juncture when Russia is basically mired in Ukraine. The prestige of Russia has had great damage done,” Vuving said.
“Central Asian countries need to get their oil out, and China needs to be connected to the Middle East. And now, with Russia shrinking and isolated, they’re going to need to explore a new Silk Road,” Vuving added, referring to the ancient Eurasian trade network that bypassed what’s now Russia to reach parts of Europe.