China expands its economic footprint in Central Asia
China-Central Asia Monitor: July 24-30.
Bilateral trade during the first half of 2026 grew to $7.7 billion, according to official Uzbek government data, making China by far Uzbekistan’s largest trade partner. Beijing’s official statistics, meanwhile, put the number even higher – at $8.9 billion. Russia, Uzbekistan’s erstwhile overlord, lags far behind with bilateral trade turnover amounting to $5.8 billion.
The number of Chinese-Uzbek joint ventures, along with wholly owned Chinese companies, grew to 6,060 during H1 2026, many of them involved in mining, industrial production, energy and other key sectors. The growth rate for Chinese businesses in Uzbekistan is accelerating: the number stood at 2,241 in 2022, then grew to 3,357 by 2024. Since then, the total has almost doubled. Russia, which was the leader in terms of the number of businesses in Uzbekistan as recently as 2023, now only has 3,454 of its companies operating in the Central Asian state.
Tourism by Chinese citizens is also booming. The number of Chinese tourists visiting Uzbekistan in H1 2026 reached 223,479. For context, for all of 2025, the number was 278,900, and just 74,300 the previous year. Since Uzbekistan and China introduced a visa-free regime for short-term visits in mid-2025, all such visits are registered by Uzbekistan as tourism, although many Chinese guests come for business purposes, such as meetings, negotiations and exploratory missions. Thus the rapidly growing number of visitors also augurs further growth in economic ties.
Kazakhstan
Kazakhstan and China are deepening financial integration, with plans to connect their payment systems and expand the use of digital financial technologies. Following talks between Kazakhstan’s National Bank and the People’s Bank of China and the Industrial and Commercial Bank of China, the parties agreed to introduce mutual QR payments, establish a link to China’s cross-border payment infrastructure, and launch pilot settlements between the digital tenge and digital yuan, according to DigitalBusiness.kz.
Kazakhstan has reached a record level of agricultural exports, with flax seed shipments exceeding 1 million tons for the first time, driven by strong demand from China (which accounted for around 40 percent of exports) and European markets, writes DigitalBusiness.kz.
Kazakhstan and China have launched an international laboratory at the KazakhNational AgrarianResearch University focused on biological security, microbiology, and the One Health approach. The laboratory will support joint research on emerging infections, zoonotic disease monitoring, molecular diagnostics, and genomic technologies, providing Kazakh scientists with access to Chinese research networks and advanced technologies, reports DKNews.kz.
Kyrgyzstan
The China Center for Information Industry Development, an influential in-house think tank advising the PRC’s Ministry of Industry and Information Technology, offered Kyrgyzstan free premium-class Chinese-made automobiles for the upcoming SCO summit in Bishkek. The gift aims to grease the wheels for the center’s entry into Central Asia. Center officials intend to start cooperating with Kyrgyz experts, before expanding contacts with the rest of the region, Economist.kg reports.
Tajikistan
Tajikistan’s trade with China grew by roughly half during the first six months of 2026, reaching $1.78 billion and thus solidifying the PRC’s status as the Central Asian nation’s largest trade partner, according to Tajikistan’s Statistics Agency. Tajikistan’s data differs markedly from that published by the PRC; according to Beijing, bilateral turnover during the period amounted to $2.35 billion.
China is also Tajikistan’s largest provider of humanitarian assistance, accounting for about a sixth of about $12.5 million in aid that the Central Asian state received during the first half of 2026.
The destruction of Russia’s energy infrastructure by Ukrainian drone strikes is prompting Tajikistan to diversify its fuel suppliers. Dushanbe has been dependent on Russia for a large percentage of its fuel. Tajik officials are now negotiating with China to import gasoline and diesel fuel, reports Asia Plus. The two sides are still discussing potential supply routes, including direct deliveries through the Kulma border crossing or transit via neighboring countries. Tajikistan also is aggressively prospecting for domestic oil and gas reserves, relying on Chinese assistance.
Turkmenistan
A Chinese firm, NEW JCM, signed a contract with Turkmenistan’s state gas company Turkmengaz to service eight DG-90L2 gas turbines at two compressor stations in the Dashoguz region, Takyk reports.
Author: Aidana Sachs
Eurasianet
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