China to move 55 enterprises to Kazakhstan

Kazakh President Kassym-Jomart Tokayev and Chinese President Xi Jinping crossed paths during celebrations marking the 80th anniversary of the Great Victory in Moscow. The meeting was brief but significant and became an important prologue to the upcoming state visit of the Chinese leader to Astana, scheduled for June 17-18, 2025. The Chinese leader will also take part in the Central Asia–China summit of heads of state, aimed at further strengthening Beijing’s position in the region.

Chinese President Xi Jinping’s visits to Kazakhstan are becoming regular. His previous visit to Astana took place on June 2, 2024. It was then that the Chinese leader described the bilateral relations as having evolved from a “comprehensive strategic partnership” to an “eternal comprehensive strategic partnership” (see NG dated 07/02/24). It is noteworthy that while Kazakhstani experts emphasize the deep historical roots of cooperation dating back to the time of the Kazakh Khanate, Xi Jinping focuses on modern ties, the starting point of which was the Chinese Belt and Road initiative, launched in 2013. Over the past period, the countries have really come a long way.

As Stanislav Pritchin, Head of the Central Asia Sector at IMEMO RAS, noted in an interview with NG, “Kazakhstan is China’s key economic partner in Central Asia, accounting for the largest volume of trade between China and all the republics of the region.” According to the expert, this is confirmed by large-scale joint projects in the transport and energy sectors. Among them are the Atasu–Alashankou oil pipeline connecting the western regions of Kazakhstan with China, and a number of energy projects being implemented with Chinese participation: oil and gas projects in the Aktobe region, as well as a project to convert CHPP–2 in Alma Ata from coal to gas, the implementation of which is entrusted to a Chinese company. China is also making systemic investments in the oil industry, including assets such as Mangistaumunaigas and an 8.33% stake in the Kashagan field. Traditionally, the transport infrastructure plays an important role, turning Kazakhstan into a kind of gateway for Chinese goods and a key transit link in trade with the Russian Federation and European countries. “This is a really complex story that is being systematically implemented, and we see how this interaction has been deepening in recent years. Therefore, China’s attention to Kazakhstan is not decreasing, interest remains high, and the level of trade turnover and new projects confirm the importance of this area for Kazakhstan’s foreign policy,” Pritchin stressed.

On the eve of the visit of the Chinese leader, President of Kazakhstan Kassym-Jomart Tokayev, at a meeting with Head of the International Department of the Central Committee of the Communist Party of China Liu Jianchao in Astana, said that “the Kazakh-Chinese eternal comprehensive strategic partnership is developing upward and is looking to the future.” He stressed that these strong ties are an example of mutually beneficial cooperation based on friendship and good neighborliness, and highly appreciated his personal relations with Chinese President Xi Jinping. According to him, Kazakhstan is committed to further strengthening comprehensive cooperation with China.

This year may become a landmark year for Kazakhstan in the transport sector, as China’s economic interests are no longer limited to Central Asia, but are expanding globally, according to Kazakh political analyst Kayyrzhan Abdykhalikov. In this context, new opportunities are opening up for Kazakhstan within the framework of the Belt and Road and Western China–Western Europe programs. This year, it is possible to launch new projects in the field of logistics and transportation of oil and gas. China attaches great importance to these destinations and strives to develop alternative routes.

For example, Kazakhstan and China have launched a new railway route designed to become an important artery for the delivery of goods to Europe. According to the press service of NC Kazakhstan Temir Zholy JSC, this initiative was the result of cooperation between its subsidiary KTZ Express JSC and China Railway Container Transport Co., Ltd. (CRCT). The launch of the new container service marks the opening of another strategic corridor between China and European markets. The first container train, symbolically loaded with components for televisions, has already embarked on its transcontinental flight from the Chinese city of Chengdu, heading for the Polish city of Lodz. The train passed through the territories of Kazakhstan, Turkmenistan, Iran and Turkey. This route, as emphasized in the message, will ensure uninterrupted supplies and strengthen economic ties between the countries, and the expected travel time will be approximately 40 days.

Another Kazakh initiative belongs to the Atameken party. Gulnar Bizhanova, Deputy Chairman of the party’s board, informed about Astana’s interest in relocating Chinese production facilities to Kazakhstan, emphasizing the geographical and logistical advantages of the country. She identified priority sectors for cooperation – feed processing, irrigation, animal husbandry and feed production – and invited Chinese companies to engage in dialogue at B2B meetings.

It should be recalled that the agreement signed by the first president of Kazakhstan, Nursultan Nazarbayev, on the transfer of 55 enterprises from China to Kazakhstan caused long-term protests in the republic, during which demands were made to stop China’s expansion (see NG dated 09/05/19). It was believed that China was transferring harmful industries to Kazakhstan. Only President Tokayev managed to adjust this program and bring relations with China to a new level.

The development of relations with the countries of the region will be discussed at the Central Asia–China summit, following which it is planned to sign a number of key documents, including the Astana Declaration. The Foreign Ministers of China and Central Asian countries discussed the agenda of the meeting at the end of April (see NG dated 04/27/25). In particular, these include strengthening political dialogue, expanding trade and economic ties and transport connectivity, jointly countering challenges and threats, as well as issues of sustainable development and environmental security in the region.