China's Investment in Uzbekistan's Economy
The young workforce, vast industrial potential, and strategic location of Uzbekistan along the Silk Road form a natural complement to China. This synergy has driven rapid economic development between the two countries, particularly in sectors such as energy, agriculture, and textiles, which have been a focus under President Mirziyoyev.
As of February 2025, the number of Chinese investment enterprises in Uzbekistan has increased to 3,467, a significant rise from 2,432 in the previous year. Chinese investments have shifted from extractive industries to development-oriented projects, including agricultural modernization, factory construction, and infrastructure for raw material processing. This shift aims to align Uzbekistan's economic priorities with China's goal of achieving sustainable and mutually beneficial growth in partner countries.
The bilateral trade relationship has also seen remarkable growth. Since 2000, the value of trade between Uzbekistan and China has continued to rise, reaching $12.1 billion in 2023, accounting for about 19% of Uzbekistan's total trade volume. China is currently Uzbekistan's largest trading partner, as well as its largest source of imports and second-largest export destination. Notably, although trade volumes with both Russia and China have increased, China has surpassed Russia to become Uzbekistan's largest trading partner.
Last November, Uzbekistan and China completed bilateral market access negotiations, a crucial step toward joining the World Trade Organization (WTO). This move is expected to accelerate Uzbekistan's integration into the global trade network and enhance its attractiveness to foreign investors by aligning its trade practices with international standards.
Prosperous Industries Between China and Uzbekistan
China's rapidly expanding investment footprint in Central Asia is particularly evident in Uzbekistan, where cooperation spans energy, infrastructure, manufacturing, and emerging technologies. Energy cooperation is a cornerstone of Sino-Uzbek relations.
Chinese companies have deep roots in Uzbekistan's energy sector, supporting both fossil fuel operations and the country's growing energy demand. In the renewable energy sector, driven by infrastructure investments, joint ventures, and long-term contracts centered on the Central Asia-China gas pipeline, China has surpassed Russia to become Uzbekistan's largest buyer of natural gas. Although increasing domestic demand has limited Uzbekistan's exports, progress on the D-line project highlights the deepening of the bilateral partnership.
This new line will enhance Uzbekistan's transit and supply role while extending China's influence to Tajikistan and Kyrgyzstan, but it relies heavily on Chinese financing, thereby strengthening ties between these countries and Beijing.
China's role in the renewable energy sector is especially noteworthy. From being an investor in Uzbekistan's mining industry, China has transformed into a green energy partner, a commendable shift. Since early 2023, Beijing has supported over 5,000 megawatts of additional solar and wind capacity, aligning Tashkent's industrial modernization with China's climate diplomacy ambitions.
State-owned enterprises such as China Energy Engineering Corporation (CEEC) have led the way by building 2,000-megawatt solar power plants in Kashkadarya, Bukhara, and Samarkand. In contrast, PowerChina's 400-megawatt Anjui project (July 2023) and the 1,500-megawatt wind and solar hubs advanced by Sany Group and China Electric Power International in Karakalpakstan and Navoi (April 2024) reflect a transition toward a sustainable infrastructure strategy.
Partnerships including ACWA Power, Poly Group, and China Datang have further diversified the investment portfolio, with multiple projects in Tashkent and Navoi, such as Sinoma Energy's 300-megawatt solar + 75-megawatt storage project (November 2024). This rapid advancement not only meets Uzbekistan's growing domestic demand but also solidifies its position as a regional clean energy hub, thanks to China's technological and financial strength.
Nuclear energy is also on the horizon. The Uzbekistan Atomic Energy Agency (UzAtom) is exploring preliminary negotiations with China National Nuclear Corporation to deploy small modular reactors and expand uranium capacity, indicating a long-term collaboration in low-carbon energy.
Infrastructure development remains the second pillar. Chinese financing and engineering companies are supporting key road, rail, and telecom projects. Most notably, the highly anticipated China-Kyrgyzstan-Uzbekistan Railway (CKU), a 523-kilometer railway connecting Kashi in western China, through Kyrgyzstan, and finally arriving at Andijan in Uzbekistan.
The project broke ground in December 2024 after both sides signed a financing agreement and established a joint venture in which the Chinese party holds 51% ownership.
Strategically, the China-Uzbekistan railway in Central Asia aims to bypass Russia and Kazakhstan, providing a shorter route from China through Uzbekistan to Europe and the Gulf. This represents a major shift in Central Asia's connectivity architecture, a concern that Moscow has previously expressed.
Although the project faced criticism from Russia, its subdued response reflects broader concessions made by Russia in response to China's growing strategic dependence, especially following Western sanctions imposed after the 2022 Ukraine conflict. This mirrors Moscow's previous acceptance of China-led pipeline rerouting through Kazakhstan.
Uzbekistan's Role in China's "Belt and Road" Initiative
The "Belt and Road" initiative has played a vital role in promoting these infrastructure linkages. As a doubly landlocked country, Uzbekistan has greatly benefited from the expansion of transportation corridors connecting it to China, Europe, and South Asia. Two transcontinental routes of the "Belt and Road" initiative pass through Uzbekistan, promising to shorten delivery times, reduce trade costs, and integrate it more deeply into global supply chains.
Beyond energy and transport projects, Uzbekistan and China have deepened industrial ties through a series of special economic zones. A $1.2 billion technology park in Zamin has now become a cornerstone of high-tech manufacturing and innovation. The newly announced Samarkand Technology Industrial Park will integrate research and production. The Buxkayipak Yuli industrial zone in Almalyk is accelerating production of a range of products, from household appliances to medicines.
At the same time, the Pengsheng Industrial Park on the upper reaches of the Syr Darya River, which has been operational since 2009, has over 1,500 workers. These collaborative efforts have laid the foundation for Tashkent to promote export diversification, value-added production, and deepen economic ties with China.
In the automotive sector, Uzbekistan and Chinese electric vehicle manufacturer BYD plan to establish a joint research center, develop electric vehicle standards, and produce Blade batteries and electric buses. BYD has already produced two electric vehicles, Chazor and Song Plus Champion, in its Uzbekistan factory. This collaboration reflects Uzbekistan's proactive push towards green industry.
Agriculture and food processing are another area of cooperation between the two countries. Chinese investments are helping Uzbekistan modernize its agricultural sector by introducing new technologies, increasing productivity, and expanding market access for exported products such as fruits, vegetables, and cotton. Agricultural cooperation zones and joint ventures have also promoted rural development and employment.
Scientific and technological cooperation is a relatively new but rapidly developing field in the relationship between the two countries. Recent agreements focus on digitalization, artificial intelligence (AI), and scientific collaboration, covering joint R&D and workforce training programs. These initiatives highlight the efforts of both countries to drive economic growth through digital transformation.
For China, Uzbekistan is not just a trading partner but a gateway to a broader Central Asian market and a key node on the western wing of the "Belt and Road." Tashkent's relatively stable political environment and reform agenda enhance its appeal, especially when other transit routes, such as those through Afghanistan or Russia, have become less reliable due to severe sanctions. Therefore, strengthening ties with Uzbekistan aligns with Beijing's interests in ensuring the security of westward trade corridors that bypass geopolitical chokepoints.
"All-weather" Sino-Uzbek Relations
By elevating their relationship to an "all-weather" strategic partnership, Uzbekistan and China have rewritten the balance of power in Central Asia. Tashkent has become a powerful economic engine, while Beijing ensures critical transportation corridors and energy supplies. As Western countries seek to re-engage, Uzbekistan faces the challenge of leveraging competing great power interests, using Chinese investments for national reforms, while maintaining a diversified foreign and security policy.
Source: Foreign Affairs
Original: https://www.toutiao.com/article/7523427718340428288/
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