Shen Shiwei, CGTN Digigal reporter and international affairs analyst
Amidst strong global economic cross-currents, China has been steadfastly enhancing its high-level opening up while forging deeper international ties. During this year's Two Sessions, the annual meetings of China's national legislature and top political advisory body in Beijing, top priorities were assigned to enhancing institutional opening up and willingly subscribing to high-standard international economic and trade norms.
China is deepening reform and opening up comprehensively, according to a government work report submitted on Wednesday to the national legislature for deliberation. The report said China has fully applied the negative list for cross-border trade in services and launched opening-up trials for valued-added telecom services, biotechnology and wholly foreign-owned hospitals.
Opportunities for Central Asia
The Two Sessions serve as a window to China's policy and economic plans. In a world rife with uncertainties, China has sent a clear signal of its unwavering commitment to high-level opening up. This encompasses proactive alignment with high-standard international economic and trade rules, the expansion of a global network of high-standard free trade agreements, endeavors to attract more foreign direct investment (FDI), and the deepening of economic collaborations through bilateral and multilateral mechanisms.
China's economic evolution towards high-quality, eco-friendly development has translated into shared global opportunities. China offers substantial market access for Central Asian countries. Furthermore, Central Asian countries can take advantage of China's policies to stimulate consumption and attract FDI. These policies ease the entry of high-quality products from Central Asia into the Chinese market. Kyrgyzstan's traditional textiles, renowned for their craftsmanship, witnessed a 25-percent increase in exports to China in 2024, finding a niche among Chinese consumers with a penchant for unique cultural products.
The Trans-Caspian route
China's backing of the Trans-Caspian International Trade Route attests to its dedication to diversifying trade corridors. This strategic move enables Central Asian countries to access European markets more efficiently while strengthening their connectivity with China. As emphasized during the China-Central Asia Summit, streamlined logistics and reduced transit times will enhance economic integration, fostering mutual growth and prosperity.
In 2023, the Xi'an Declaration of the first China-Central Asia Summit proposed the construction of the Tacheng-Ayagoz Railway, the third China-Kazakhstan cross-border link to enhance Eurasian railway connectivity. Additionally, in 2024, China, Kyrgyzstan and Uzbekistan reached an agreement to advance the China-Kyrgyzstan-Uzbekistan railway project. The steady progress of these two pivotal railway projects further exemplifies China's commitment to infrastructure development for regional connectivity and trade.
Green finance and new energy vehicles
China's high-level opening up, with its focus on attracting foreign investment, has paved the way for burgeoning cooperation with Central Asian countries in hi-tech sectors, such as green finance and the manufacturing of new energy vehicles.
In the financial investment domain, Chinese financial institutions have been increasingly active in Central Asia. The Industrial and Commercial Bank of China (ICBC) has established branches in Kazakhstan, providing financial services to local enterprises and facilitating trade financing.
Regarding new energy vehicles, China, a global pacesetter in this field, has seen growing cooperation with Central Asian markets. This not only helps countries in Central Asia to upgrade their transportation fleet towards a more sustainable and eco-friendly model, but also expands the market share of Chinese new energy vehicle manufacturers.
Moreover, there are prospects for joint ventures in new energy vehicle manufacturing. Chinese companies are exploring partnerships with local Central Asian enterprises. Such collaborations could leverage China's advanced technology and Central Asia's strategic location close to the vast Eurasian market, potentially yielding a win-win situation in terms of economic growth and technological innovation.
China’s high-level opening up presents extensive opportunities for Central Asian economies. As China continues to push forward institutional openness and foster a more conducive business environment, Central Asian nations are well-positioned to be benefited.
