China and Central Asia: unlocking opportunities through cooperation

The "Central Asia + China" format has become an important platform for deepening political, economic and cultural ties between China and the five Central Asian countries. For Uzbekistan, closer cooperation with China serves both its foreign policy priorities and development goals, offering opportunities to attract investment, expand exports, improve infrastructure and strengthen regional connectivity.

Uzbekistan is pursuing transport and logistics projects under the Belt and Road Initiative, while expanding cooperation in science, education and people-to-people exchanges. For Uzbekistan and its Central Asian neighbors, deeper cooperation with China can help turn greater connectivity into broader economic opportunities and more sustainable growth.

This broader cooperation is also gaining momentum in emerging areas such as technology and innovation. Following the recent SCO Summit in Bishkek, Kyrgyzstan, new cooperation initiatives are expected to further strengthen regional cooperation. At the summit, China announced plans to establish an international cooperation center on AI applications for SCO countries and to jointly implement 100 technological cooperation projects with SCO countries over the next three years, injecting new momentum into technological innovation and regional development.

Against this broader backdrop, there are several areas where China-Central Asia cooperation could generate particularly tangible benefits.

First, according to forecasts, the combined GDP of Central Asian countries will increase to $700 billion by 2030, with exports from the region expected to increase from $125 billion to $200 billion.

This significant growth is driven by the dynamic development of the manufacturing sector, particularly in Uzbekistan, where copper production is projected to reach 500,000 metric tons a year, and exports of textiles and garments likely to rise to $10 billion.

Trade between China and Central Asia has continued to grow, with China exporting a wide range of products to the region, including footwear, textiles and clothing, machinery and vehicles, electronics, and iron and steel. There are strong prospects for trade between the two sides to expand significantly in the coming years, driven primarily by the rapid growth of trade in industrial goods and agricultural products.

Second, Central Asian countries still face challenges in logistics and transport connectivity. Further improvement in transport connectivity could boost socioeconomic development in the region.

It is thus crucial for the Central Asian countries and China to jointly implement cross-border projects, such as the "China-Kyrgyzstan-Uzbekistan" highway and railway and the "Uzbekistan-Afghanistan-Pakistan" railway. These corridors will reduce distances and travel time, optimize logistics, and lower transport costs.

Alongside the Middle Corridor (trans-Caspian international transport route), the development of the "Southern Corridor", linking China and Europe via Central Asia, Iran and Turkiye, is equally important, not least because it covers all the countries in the region. The Southern Corridor is a land route preferred by transport firms because it avoids crossing the Caspian Sea and other risky routes, and can offer a more direct overland connection between China and Europe. Uzbekistan views the Southern Corridor as a vital channel for goods transportation, expanding trade relations among Central Asia, China and Europe, while ensuring efficient flow of cargo on the routes.

Cooperation between China and Central Asia is critical to regional economic growth, with investments in infrastructure development playing a pivotal role in achieving our shared goals. Together, the Central Asian countries and China can transform Central Asia into a vital trade hub, driving economic growth and fostering closer ties between the two sides.

Third, Uzbekistan aims to greatly improve its energy efficiency, especially in the oil and gas sector, by working together with China, which is a leading global supplier of energy-saving technologies. Uzbekistan still faces considerable challenges in reducing energy losses during the extraction and transportation of natural gas. By deepening cooperation with China National Petroleum Corporation, Uzbekistan can reduce losses and enhance efficiency in the oil and gas sector, while partnerships with companies such as China State Construction Engineering Corporation and other organizations can facilitate technology transfer.

Fourth, Uzbekistan has huge potential in solar and wind energy, while its rapidly growing electric vehicle market offers another promising avenue for cooperation with China.

By deepening collaboration on large-scale renewable energy projects, cross-border power transmission and EV manufacturing, the two countries can strengthen energy security, reduce costs, facilitate technology transfer and create more local jobs. Such cooperation could also help integrate Uzbekistan's green energy projects into Belt and Road cooperation and advance its ambition to become a regional exporter of clean electricity.

Beyond energy, Uzbekistan's largely untapped reserves of critical minerals, including lithium, graphite and rare earth elements, offer significant potential for cooperation with China. As these resources are vital to the green economy, developing them responsibly could strengthen green industrial supply chains and create new opportunities for both countries.

The "Central Asia + China" format is fostering trust and joint solutions to regional challenges, and will play a pivotal role in shaping a new regional order, driving economic growth, maintaining political stability, and boosting cultural exchanges.

The author is chief researcher at the Center for Economic Research and Reforms under the Administration of the President of the Republic of Uzbekistan.

The views don't necessarily reflect those of China Daily.

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