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Source: www.asiaecon.org |

CHINA IS INVESTING IN CENTRAL ASIA


Beijing has been on spending spree among the Central Asia with billions of dollars invested. Central Asia is rich of oil, natural-gas fields and hydroelectric power. China has handing over a US$10 billion loan to cash-strapped Kazakhstan last month and supporting construction projects and investment from Ashgabat to Bishkek. Experts said that the recent Chinese splurge is part of a long-term strategy for the region, few question the fact that Beijing's hand has never been stronger.


The China expert for Economist intelligence Unit,Gareth Leather, said that “As China’s economy grows very quickly, demand for raw materials has shot up and Central Asia is obviously rich in a number of raw materials that China needs. so it is keen to put more investment into that region.” Beijing have a project secured to build a 960-kilometer oil pipeline from Kazakhstan to China. The experts said that the pipeline would start to operate in the next two years, it would carry 20 million tons of oil annually.  One of the the biggest China’s strategies is importing oil from Kazakhstan, also diversify energy suppliers and import routes. Beijing wants to diversify oil exports because 80 percent of Chinese oil imports these days come from Malacca, a small shipping lane between Malaysia and Indonesia.    In fact, China’s investment pattern in Central Asia fits with a broader strategy that has seen Beijing snap up assets across the world in a drive to convert its massive foreign currency reserves into concrete holdings. However, Since 1991 when soviet collapsed, Beijing has also showed special interest in using its money to guarantee stability along its central Asian Border, building infrastructure projects and investing in key sectors.  Multi-million dollar infrastructure projects in Tajikistan and Kyrgyzstan are prime examples of China’s strategy. Electrification and road projects improving the quality of life in these regions make them less extremists (they are home of Muslim ethnic group, analysts said that region is has resulted in human rights abuses by the government)and opens up the market to China’s goods.  Already China has engaged Tajikistan through the Shanghai Organization and Cooperation (SCO), that promised to improve bilateral trade relations and cooperation against terrorism, separatism and extremism.  China is helping to finance construction of railway from Uzbekistan through Kyrgyzstan to China. Since the beginning of China often hold military exercises aimed to combating terrorism and maintaining regional security. In 2008,  Tajikistan received US$ 172 million loan from a US$ 900 million preferential export credit line given by china to SCO member states.  Since the beginning of China and Tajikistan started to have relations since 1994, both countries have signed 105 agreements and bilateral trade had lifted US$524 million in 2007.

Source: www.asiaecon.org |


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