Uzbekistan’s Pharma Pivot: Strategic Gains or Growing Dependence on China
Since 2016, Uzbekistan has steadily deepened its partnership with China across multiple sectors. Energy, infrastructure, agriculture, and the digital economy have long been the pillars of this cooperation. Yet recent discussions showed that the pharmaceutical sector will be another critical area for cooperation in the long term.
Much like renewable energy and critical minerals, the pharmaceutical sector is now viewed in Tashkent as a strategic domain where Chinese expertise and investment could accelerate development and add value to the domestic economy.
The Compelling Logic of Partnership
China’s strength lies in its ability to produce high-quality, affordable medicines and distribute them globally at scale. For Uzbekistan – whose growing population and rising demand for advanced healthcare have placed pressure on its system – this makes China a natural partner.
At present, the Uzbek pharmaceutical market remains heavily import-dependent: by the end of 2024, imported drugs accounted for 87% of retail sales in monetary terms and 63% in physical volume. This reliance not only exposes vulnerabilities but also highlights the untapped potential for local production.
Recognizing this, Tashkent has moved to create favorable conditions for investment. The country has established specialized pharmaceutical Special Economic Zones (SEZ) such as Parkent-Pharm and Andijan-Pharm.
These SEZs offer investors an attractive package of incentives, from exemptions on customs duties and VAT for raw materials and equipment, to a 20% preference in government procurement for local products. Such regulatory incentives, combined with a growing domestic market, have already begun to draw interest from Chinese pharmaceutical firms.
Strategic Priorities
Recently, Uzbekistan has signed a series of memorandums of understanding with Chinese firms such as Zhendong Health Industry, Guojo Medical Technology, and Langtian Pharma Group, signaling a stronger bilateral focus on the pharmaceutical sector.
These agreements align closely with Uzbekistan’s strategic goal of building a robust domestic pharmaceutical industry with an emphasis on access to capital and technology, localization, and human capital development.
One of Uzbekistan’s key priorities is securing access to capital and expertise. Without investment and collaboration with experienced companies, the state cannot establish modern laboratories and production facilities. In this regard, the Uzbek company, Ozwell, has signed an MoU with Zhendong Health Industry Group to jointly implement a modern pharmaceutical laboratory.
The partnership involves a total investment of $9.5 million, with $4.5 million allocated toward creating a world-class laboratory facility and $5 million designated for establishing and scaling up a production complex. This agreement reflects Tashkent’s desire to tap into Chinese technical knowledge and experience, while simultaneously building domestic capacity and developing local talent in the long term.
Another critical priority is the localization of drug production. By reducing dependency on imports, Uzbekistan is aiming to strengthen supply chain resilience, meet domestic demand, and create new opportunities for regional exports. In this regard, the MoU established with Langtian Pharma Group and Guojo Medical Technology is designed to investigate opportunities for domestic production while promoting technological collaboration and knowledge transfer within the pharmaceutical industry.
The final priority is the development of human capital. In this regard, Uzbekistan is engaging not only with Chinese firms but also with Chinese educational institutions to strengthen its workforce. For example, the MoU between Wenzhou Medical University, the Eye Valley Innovation Cluster, and Uzbekistan’s Agency for the Development of the Pharmaceutical Industry reflects cooperation in education, research, technology transfer, and clinical practices. This partnership aims to promote skills development among Uzbek students and medical professionals.
Possible Risks
While cooperation with Chinese firms and educational institutions offers clear benefits in human capital development, access to capital, and localization, there are also risks if a balanced approach is not maintained. Reliance on Chinese investment and expertise can help develop local production and create value addition, but it can also foster dependency on Chinese technology and know-how.
Technology transfer is a key incentive of these partnerships, yet there is a risk that critical knowledge may not be fully transferred, leaving Uzbek firms reliant on foreign partners. This dependency could limit domestic value addition and hinder the development of indigenous innovation and local industry over the long term.
Moreover, growing cooperation may encourage regulatory harmonization with Chinese practices. While this can facilitate faster market access and the introduction of advanced pharmaceutical products, over-aligning with Chinese standards carries its own risks.
Uzbekistan could face barriers to trade with other regions if its regulations diverge from EU or U.S. pharmaceutical requirements, potentially limiting export opportunities if local rules are tailored too narrowly to Chinese norms.
Calibrated Optimism
Despite being in the early phase of cooperation, Uzbekistan’s engagement with Chinese pharmaceutical firms and institutions sets the stage for a transformative road in healthcare and industrial development. The real opportunity lies not just in importing capital or expertise but in turning these partnerships into a platform for homegrown innovation, stronger supply chains, and regional competitiveness.
Success will depend on Uzbekistan’s ability to absorb knowledge, adapt technology to local needs, and craft policies that foster autonomy rather than dependence. If managed wisely, these early steps could redefine the country’s pharmaceutical sector and create a blueprint for sustainable growth in other strategic industries.






