DEVELOPMENT OF CHINA-KAZAKHSTAN AND CHINA-UZBEKISTAN TRADE AND ECONOMIC RELATIONS (2013-2020): A COMPARATIVE ANALYSIS

Abstract

This paper explores the development of trade and economic relations between China and Kazakhstan, and China and Uzbekistan since the introduction of the "One Belt – One Road" initiative in 2013 until the economic slowdown in 2020. The author also compares the different ways in which China–Kazakhstan and China–Uzbekistan trade and economic relations were developed. The research reveals a significant role of the "One Belt – One Road" initiative in the rapid growth of bilateral cooperation between China and Kazakhstan, and China and Uzbekistan in the spheres of trade, infrastructure development, finance and energy. Kazakhstan and China put the emphasis on infrastructure development and trade, including the manufactured products. Uzbekistan and China focused on trade in energy resources. China's investment in both Central Asian countries grew equally, however Kazakhstan received more Chinese loans than Uzbekistan. China provided loans to both countries only on condition of their cooperation with Chinese companies operating in Central Asia. New transit routes were built within the framework of the "One Belt – One Road" initiative. China, Kazakhstan and Uzbekistan implemented joint highways projects such as the Kabul and Trans-Caspian corridors. While China and Kazakhstan developed continental infrastructure projects such as "Western China-Western Europe", China and Uzbekistan focused more on local programs such as the construction of the Kamchik tunnel. Kazakhstan and Uzbekistan pursued different energy policies toward China. Kazakhstan was developing equal cooperation with China and Russia in energy sphere. Uzbekistan tried to pursue a policy of energy independence, and when it failed, it began to work more closely with China. Other significant differences between Kazakhstan and Uzbekistan included their positions regarding the financial structures of the Shanghai Cooperation Organization. During discussion of the SCO Development Bank project, Uzbekistan and Kazakhstan supported Chinese and Russian projects respectively.