Opinion: As Kazakhstan-China Trade Booms, Tokayev and XI Strengthen Relations
On June 16th, Kazakhstan’s President Tokayev hosted Chinese President Xi Jinping and the presidents of Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan in Astana at the second China-Central Asia Summit.
The six countries signed the ‘Treaty of Permanent Good-Neighborliness and Friendly Cooperation’, which reinforced their strategic cooperation in multiple areas, particularly in trade and investment. Aggregate China-Central Asia trade is up 10.4% this year.
Kazakhstan is a pivotal player in transcontinental Eurasian trade and integration. Its geographic location, multimodal transport networks, and strategic partnerships with neighboring countries, particularly China, position Kazakhstan as Central Asia’s primary overland gateway to Europe and West Asia. It’s no surprise, therefore, that President Xi Jinping visited Astana – his sixth trip to Kazakhstan and sixteenth to Central Asia.
Over the past two decades, Kazakhstan has reclaimed its historic role as a nation of merchants and intermediaries, revitalizing trade routes like the middle corridor and logistics hubs such as Khorgos Gateway—a dry port facilitating container transshipment between Chinese and Kazakh railways en route to Europe. These are just two examples of infrastructure projects in Kazakhstan; there are many more in development.
In Astana, Presidents Tokayev and Xi underscored the importance of further socio-economic progress arising from enhanced economic linkages. Tokayev reiterated Kazakhstan’s support for mutually beneficial business opportunities, emphasizing the principle of national sovereignty and independence.
Recent trade figures reflect the robust economic ties in infrastructure and connectivity. Kazakhstan’s construction sector, driven by investments in transport, are poised to increase by 6.8% in 2025, according to Kazakhstani economists.
Sino-Central Asian trade, according to China’s General Administration of Customs, reached $94.8 billion in 2024, with Kazakhstan accounting for 46% of that total—$43.8 billion—making it China’s largest partner in the region. This contrasts with Uzbekistan, Turkmenistan, and Tajikistan’s combined total of $28.1 billion, and Kyrgyzstan’s $22.7 billion, driven largely by re-exports and gold.
Kazakhstan remains the anchor economy in Central Asia – the strategic hinge between China and the West – as confirmed not only by the volumes of freight entering and leaving Kazakhstan, but by its upstream and downstream economic benefits, causing a multiplier effect across the country. Over 80% of land cargo from China to Europe passes through Kazakhstan.
What factors have led to this development? A key factor has been global demand for raw materials, but that’s only part of the story. What stands out as the principal driver of Kazakhstan’s success in boosting trade over the past 20 years was its commitment soon after independence in 1991 to invest in transport and logistics, while creating a regulatory and legal framework in parallel to facilitate operability.
In other words, Kazakhstan’s success is no accident. It was the country in Central Asia to embrace economic liberalization not as ideology, but as a pragmatic approach to address the inefficiencies of a centralized command economy. This visionary approach facilitated economic liberalization, including getting rid of oppressive centralized planning and embracing private capital and deregulation without relinquishing sovereignty.
Kazakhstan also pushed ahead in developing a banking sector that over time provided a foundation for retail, trade-related and SME lending as well as local and foreign direct investment.
Kazakhstan’s success also stems from its commitment to regional cooperation, as was just seen in Astana last week. Regional leaders have set aside geopolitical and socio-religious differences in favor of constructive collaboration in trade and cross-border dealings, fostering win-win outcomes. In the event, it proved far better to work together with the other countries of Central Asia than to fuss over past slights and grudges – a key factor in the region’s success.
A Strategic Mindset
Kazakhstan’s strategic vision is yielding significant returns. In the first five months of 2025, according to the Kazakhstan Bureau of National Statistics, its transport sector surged 23.1%, generating nearly $5.5 billion in revenue, with $4.3 billion from freight alone. Over 450 million metric tons were transported, marking an 11.9% year-on-year increase, with notable growth in pipeline (18.2%), rail (14.1%), and road transport (2.3%).
Kazakhstan’s role as a trans-Eurasian bridge is flourishing, though exports to China remain concentrated in basic metals (40.4%), metal ores (26.5%), crude oil and natural gas (21.7%), chemicals (3.8%), food and agricultural products (7.1%). The EU imports more raw materials from Kazakhstan than China, prompting further development of trans-Caspian routes.
Imports to Kazakhstan, primarily machinery, equipment, vehicles, electronics, and consumer goods, come mainly from Russia and China, with the EU in third place. Kazakhstan maintains a regional trade surplus with China, reflecting its strong position as an exporter and supplier of raw materials.
Central Asia-China Engagement
Kazakhstan and China have a long history of high-level communications. Tokayev and Xi’s recent tête-a-tête strengthened this relationship, and it shows no signs of weakening. High-level meetings between countries take place regularly. There have been six China-Central Asia Foreign Ministers’ meetings since 2020; there will be many more.
And like it or not, trade across Central Asia benefits from efforts to establish an all-weather payment mechanism free from third-party interference, exemplified by the 2022 Memorandum on Mutual Settlements between Kazakhstan and China, allowing trade settlements in Kazakh tenge and Chinese yuan. Other initiatives are in the works—part of a broader regional shift toward financial independence and visa-free travel.
Kazakhstan’s emergence as the region’s principal transport and trade facilitator results from its long-term vision, sustained investments, smart diplomacy, and embrace of economic pragmatism. This integration strategy may be its most valuable export.
Addressing Xi Jinping in Astana, Tokayev recalled the well established friendship and cooperation between Kazakhstan and China, a relationship distinguished by mutual understanding and goodwill. Assuming global economic stability, Kazakhstan and China may push their trade volumes to $75 billion per annum in the coming years. The other Central Asian countries are looking for similar outcomes and are equally hopeful.
Perhaps Kazakhstan’s success—and the attention it is giving its neighbors—helps explain why the United States, after years of neglect, has been paying closer attention to Central Asia than at any time in recent memory.
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The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of the publication, its affiliates, or any other organizations mentioned.
