China’s Influence in Central Asia:

Though CCP engagement in Central Asia predated the unveiling of the Belt and Road Initiative in Kazakhstan in 2013, spending and cooperation have certainly increased since that point. 

By 2018, FDI from the PRC in the five Central Asian countries had amounted to nearly $15 billion – a 40% increase over pre-BRI levels.

China is the destination for roughly 22% of Central Asian exports and is the source of 37% of their imports, rendering the five Central Asian countries extremely dependent on trade with the PRC.

 

China’s Failed Foreign Investment in Central Asia:

In 2013, a CCP SOE (TBEA) was selected to overhaul a power plant in Bishkek due to pressure from the Chinese government

  • The plant broke down in the middle of January 2018, rendering the city without heat during winter
  • This erupted in a domestic political scandal and criminal case, yet somehow no blame fell on TBEA 

In 2018 the China Development Bank halted financing for the aspirational Nur-Sultan Light Rail project

  • Following an embezzlement scandal, Kazakhstan repaid the China Development Bank the roughly $200 million that was owed to Chinese contractors, but only 15% of the project had been finished

 

China’s Investment in Central Asia’s Mining and Energy Sectors:

Until Tajikistan pays back a $331.5 million loan to Export-Import Bank of China for the Dushanbe-2 Power Plant, TBEA is entitled to licenses for two gold mines in Eastern Duoba and Upper Kumarg.

After a Turkmenistan-Gazprom price dispute in 2016, 80% of Turkmen gas was redirected to the PRC.

  • By late 2019 over 250 billion cubic meters of gas, valued at over $8 billion, had gone to China and is used to service Chinese loans
  • Uzbekistan’s primary gas market is also China

The Central Asia-China pipeline is another key project for the CCP in the region, with multiple lines in development across all five countries to bring Turkmen gas to Western China

  • Line D of the pipeline, passing through Tajikistan and Kyrgyzstan, has been delayed numerous times and likely will not reap the profits those countries anticipate – the CCP is likely to take profits as payment for construction

 

China’s Security Assistance in Central Asia​:

In 2015, the CCP gifted Kazakhstan 60 heavy duty trucks and trailers worth $3.2 million 

  • Kazakhstan has also purchased Wing Loong-1 military drones from the PRC.

Uzbekistan engages in joint exercises with the PRC and has also received Wing Loong-1 drones 

  • The Academy of Armed Forces of Uzbekistan and the PLA National Defense University also signed an agreement for military education cooperation in 2017

Kyrgyzstan has also received upwards of $30 million from the CCP since 2014 to upgrade weapons and build military accommodations

Per a 2016 agreement with the Tajik government, the CCP developed a military installation along the strategic Wakhan Corridor which connects Afghanistan with Western China

  • This installation is manned by the People’s Armed Police Force
  • Tajikistan has also received military equipment from the CCP, including armored carriers and patrol vehicles

Turkmenistan has received surface missiles, QW-2 man-portable air defense systems, and mobile radar from the CCP

 

China’s Security and Law Enforcement Support in Central Asia:

CCP surveillance technology has been introduced throughout the region

Kazakhstan began testing biometric payment systems called FacePay following a presidential visit to the PRC in 2019, and there is now CCP surveillance technology in many of its major cities

The CCP announced it would allocate $1 billion for a Safe City surveillance program in Uzbekistan after a state visit in 2019

Dushanbe, Tajikistan had a “Safe City” system installed by Huawei in 2013 and they announced modernizations would be made in 2019

Kyrgyzstan has an agreement with China National Electronics Import & Export Corporation to install a system to identify individuals in Bishkek

  • Shenzhen Sunwin Intelligent is also working on implementing a second stage of the “Safe City” project in Bishkek, building on existing Russian equipment

 

China’s “Soft Power” in Central Asia: 

The CCP has established 27 Confucius Institutes in Central Asia 

  • These institutes are focused on teaching Chinese languages and improving the perception of Chinese culture throughout Central Asia
  • Additionally, between 2010 and 2018 over 5,000 study grants were given to applicants from Central Asia to study in the PRC
  • Chinese has quickly become the second most studied foreign language after English in Central Asia

There is a long history of Sinophobia dating back to Soviet propaganda and anti-Chinese protests are increasingly occurring throughout the region

  • Resentment over losing jobs to workers from the PRC, the CCP’s treatment of Uighurs and ethnic Kazakhs and Kyrgyz, and concern over losing land and control of natural resources contribute to Sinophobia in the region

 

*Last Updated: 9/9/2020

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