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

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President Xi Jinping walks alongside Uzbek President Shavkat Mirziyoyev at the Shanghai Cooperation Organisation summit in Uzbekistan last week. Photo: EPA-EFE

Published: 12:00am, 22 Sep 2022Updated: 9:17am, 22 Sep 2022

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.

There are strong economic complementarities between China and Central Asia – a cluster of often Russian-leaning former Soviet republics – that are expected to open new doors for deeper cooperation on economic matters after Xi’s visit last week to Uzbekistan and Kazakhstan.

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.