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China

Kazakhstan Turns to China and Hong Kong for Deals, Yuan Debt, and Market Access

Kazakhstan has opened a new phase in its economic ties with China, with a large package of Hong Kong and mainland Chinese agreements arriving alongside Kazakhstan’s first sovereign borrowing in China’s domestic bond market. The two steps show Astana is moving beyond trade growth into finance, listings, yuan debt, and China-linked capital for infrastructure and industry. On June 2, Deputy Prime Minister and Minister of National Economy Serik Zhumangarin met a delegation of about 70 business representatives from Hong Kong and mainland China. Kazakhstan’s government said the group included 40 Hong Kong companies and 30 mainland Chinese companies working in finance, logistics, technology, energy, industry, and professional services. The visit produced four intergovernmental memoranda and 42 commercial agreements. Together, they covered aviation, finance, trade, innovation, technology, the digital economy, and green development. Hong Kong’s government gave a separate count, saying its business delegation had so far concluded 43 memoranda and agreements in Kazakhstan. The same statement said Hong Kong and Kazakhstan would move ahead with exploratory talks on a comprehensive double-taxation agreement and an investment promotion and protection agreement. A Hong Kong airline plans to launch direct flights to Almaty in the first quarter of 2027, which would add a practical link to the new finance and trade agenda. Officials discussed bond issuance, yuan funding, listings by Kazakh companies in Hong Kong, joint investment funds, and large investment projects. Baiterek National Managing Holding signed cooperation documents with Bank of China (Hong Kong), Invest Hong Kong, and Standard Chartered Hong Kong. Hong Kong Exchanges and Clearing Limited, which operates the Hong Kong Stock Exchange, also signed two memoranda in Kazakhstan, including one with the Astana International Exchange. The two exchanges plan to work on cross-border listings of shares and debt securities. The agreements came days after Kazakhstan completed its debut sovereign panda bond, a renminbi-denominated instrument sold in mainland China by a foreign issuer. The Finance Ministry raised 3.4 billion yuan (about $500 million) through three-year sovereign bonds. The bonds carried a 1.9% yield, and demand exceeded supply by two times. The issue was listed on the Beijing Financial Assets Exchange and the Astana International Exchange. The sovereign issue followed earlier yuan deals by state-linked Kazakh issuers. Development Bank of Kazakhstan placed 2 billion yuan in three-year yuan-denominated Eurobonds in September 2025, the first such issue in Central Asia. KazMunayGas raised 1.25 billion yuan in October through a five-year offshore yuan-denominated bond. Samruk-Kazyna, Kazakhstan’s sovereign wealth fund, closed the order book for 3 billion yuan in debut panda bonds in April 2026. Together with the sovereign bond, those issues total 9.65 billion yuan. The figures cover more than central-government borrowing. The National Bank of Kazakhstan defines external debt as liabilities of residents to non-residents. It includes debt obligations of both the public and private sectors. A country breakdown drawn from National Bank data shows Kazakhstan’s external debt to Chinese creditors rose to $12.87 billion at the start of 2026, up from $9.29 billion at the end of 2024. The new panda...

Investment Projects

Tashkent Signs $3.5 Billion in China Deals for Infrastructure and Exports

The third Uzbekistan-China Interregional Forum, held in the Chinese city of Xi’an, concluded with Tashkent signing more than $3.5 billion in investment and export agreements with Chinese partners, according to the Tashkent city administration. The agreements include $3.35 billion in investment projects and $156 million in export contracts spanning infrastructure, transport, construction, environmental technology, and industrial production. Officials said the deals are aimed at modernizing the Uzbek capital’s urban infrastructure and improving transport systems, public spaces, environmental services, and industrial capacity. The forum comes as China’s economic role in Uzbekistan continues to expand. According to Uzbekistan’s Dunyo news agency, speakers at the Xi’an forum said bilateral trade reached $18 billion last year, while Chinese investment in Uzbekistan totaled $17 billion. China has become one of Uzbekistan’s most important economic partners, with cooperation expanding from trade and construction into transport, energy, industry, and urban development. Dunyo’s report on the forum also presented the Xi’an meeting as part of a broader push to build direct ties between Uzbek regions and Chinese provinces, rather than limiting cooperation to central government agreements. Among the largest planned projects are a $1 billion initiative to develop Bus Rapid Transit, known as BRT, overpasses, and road infrastructure under the EPC+F financing model, and another $1 billion package focused on transport and social infrastructure projects. Additional agreements include $500 million for modern residential complexes in renovation zones and $400 million for drainage, irrigation, and stormwater systems. The city administration said financing is expected to come from Chinese partners without the direct use of Uzbekistan’s state budget or sovereign guarantees, although repayment would still depend on future municipal revenue streams. The projects are planned under the Engineering, Procurement, Construction, and Financing model, known as EPC+F. The financing structure is significant as many of the largest projects are municipal rather than national in scope. It allows Tashkent to pursue major road, drainage, and transport upgrades while presenting the deals as externally financed. Nevertheless, projects of this type can still create long-term obligations if future city revenues are used to cover repayments. The forum also focused on the development of Tashkent’s Yangi Avlod special industrial zone. Agreements worth $130 million were signed with Chinese companies, including Jwise, Zhongke Honghu, CAS Cloud, and UMGG. The projects are expected to support manufacturing infrastructure, digital management systems, and high-tech industrial production in the capital. Yangi Avlod has been promoted as one of Tashkent’s main industrial expansion sites. According to the zone’s official website, it is located in the Yangihayot district and is planned as a 764.5-hectare industrial area with logistics, warehouse, administrative, and commercial infrastructure. Other agreements include investments in decorative stone manufacturing, ceramic production, and smart waste-sorting equipment. Export contracts signed during the forum included three agreements worth a combined $150 million for jewelry exports, as well as deals covering cotton yarn and silver concentrate supplies. Separately, during the official visit to China, Tashkent Mayor Shavkat Umurzakov met with executives from China Railway Construction Corporation to discuss urban renovation projects, transport infrastructure, and...

Electric Vehicles

Chinese Brands Drive Fivefold Surge in Kazakhstan’s Electric and Hybrid Vehicle Sales

Sales of electric and hybrid vehicles in Kazakhstan rose nearly fivefold in the first four months of 2026, as Chinese brands expanded their presence and buyers turned to plug-in hybrids and extended-range models suited to the country’s long distances and harsh climate. According to the Kazakhstan Automobile Union, official dealers sold 2,122 passenger vehicles in the New Energy Vehicles, or NEV, segment between January and April, nearly five times more than during the same period last year. The NEV category includes fully electric vehicles, plug-in hybrids, or PHEVs, and extended-range electric vehicles, or EREVs, which combine electric and conventional power systems. Most sales came from hybrid and extended-range models, which accounted for 1,499 units, while fully electric vehicles represented 623 sales. Demand growth became particularly noticeable in March and April after a relatively moderate start to the year. Analysts say electric and hybrid vehicles are gradually moving beyond their status as a niche segment of the Kazakh automotive market. “Today, buyers are increasingly choosing plug-in hybrids and extended-range vehicles,” said Anar Makasheva, president of the Kazakhstan Automobile Union. According to Makasheva, such models offer many Kazakh consumers a compromise between fuel efficiency, driving range, and practicality. The pattern reflects a wider trend in Kazakhstan’s car market, where fully electric vehicles remain attractive but face practical limits linked to charging infrastructure, winter performance, and long intercity routes. Plug-in hybrids and extended-range models offer many buyers a lower-risk transition from conventional cars. Chinese automaker BYD became the clear market leader in Kazakhstan’s NEV segment, selling 1,181 vehicles, an increase of 432% compared with the same period last year. Li Auto ranked second with sales of 384 vehicles, while Geely Galaxy placed third with 367 units sold. The top five also included Zeekr and ROX. The best-selling model in the segment was the hybrid BYD Song Plus DM-i, with 413 vehicles sold during the first four months of the year. It was followed by the Geely Galaxy EX5 EM-i and the BYD Chazor. Other popular models included the Li Auto L6 and the fully electric BYD Yuan Up. In the traditional hybrid, or HEV, category, the Toyota Camry remained the market leader, with dealers selling 274 vehicles. For comparison, Kazakhstan sold a total of 4,242 NEV vehicles during all of 2025, while sales in 2024 amounted to only 1,083 units. The figures also come amid wider growth in Kazakhstan’s automotive sector. In February, the Kazakhstan Automobile Union projected that vehicle production could exceed 209,000 units in 2026, following output of 171,400 units in 2025. The growing popularity of electric and hybrid vehicles comes as the government looks for ways to make the segment more visible and easier to regulate. The Times of Central Asia previously reported that Kazakhstan plans to introduce green license plates for electric vehicles to simplify identification by traffic surveillance systems.

Energy Security

Putin Visit Puts Nuclear Power and Oil Transit at Center of Russia-Kazakhstan Ties

Russian President Vladimir Putin’s state visit to Kazakhstan is becoming more than a diplomatic event. It is increasingly being seen as a demonstration of how Russia and Kazakhstan are shaping one of Eurasia’s key energy and logistics axes amid the restructuring of global markets, sanctions pressure, and the continued shift of economic flows toward Asia. Symbolically, ahead of the visit, Putin published a programmatic article in Kazakh media titled “Russia-Kazakhstan: An Alliance at the Heart of Eurasia,” in which he outlined a new framework for bilateral relations. The Russian president focused on nuclear energy, oil and gas cooperation, transport corridors, and Eurasian integration, describing the partnership between the two countries as a factor of stability and development for the wider continent. For Moscow, the current visit carries particular significance. It is Putin’s second state visit to Kazakhstan during a single presidential term. A rare occurrence in international diplomatic practice. Kremlin aide Yuri Ushakov said the move was intended to emphasize the “unprecedentedly high level of relations between our two countries.” The main outcome of the talks is expected to be the signing of agreements related to the construction of Kazakhstan’s first nuclear power plant with the participation of Russia’s state nuclear corporation, Rosatom. According to Ushakov, the two sides are expected to finalize “the main parameters for the creation of the nuclear power plant and financing of the project through a Russian state export credit.” For Kazakhstan, the nuclear project is about far more than electricity generation. The country faces growing domestic power demand, aging infrastructure, and the need to ensure long-term energy security. At the same time, the project reflects a broader geopolitical calculation. Nuclear energy has traditionally been one of the most sensitive forms of strategic cooperation. A country building a nuclear power plant enters into a long-term technological partnership involving fuel supplies, engineering maintenance, personnel training, and technical support lasting for decades. Russia’s role in constructing Kazakhstan’s first nuclear power plant would therefore allow Moscow to preserve a deep technological presence in Central Asia despite its growing international isolation. For Astana, however, cooperation with Russia in the nuclear sector remains a pragmatic choice rather than a purely political one. Kazakhstan is the world’s largest producer of uranium, yet it still lacks its own nuclear power generation sector. Amid intensifying competition between global power centers, Kazakhstan appears less interested in choosing sides than in strengthening its resilience and turning its geography into a strategic advantage. The same logic is evident in the oil and gas agenda surrounding Putin’s visit. Moscow and Astana are discussing increasing the transit of Russian oil to China through the Atasu-Alashankou pipeline from 10 million to 12.5 million tons annually. Ushakov said prospects for the negotiations were “optimistic” and noted that the legal framework for the agreements was already in its final stages. According to KazTransOil, approximately 832,000 tons of Russian oil were transported to China through the route in April alone, while first-quarter transit volumes reached 2.5 million tons. Kazakhstan’s dependence on Russian...

Counterterrorism

China to Supply Tajikistan With Intelligence and Counterterrorism Equipment

China will provide Tajikistan with intelligence, police, and counterterrorism equipment worth more than $7.6 million under a grant assistance program approved by the two governments. The governments of the two countries signed the corresponding memorandum of understanding on May 8. The agreement provides for the transfer of equipment by China for the needs of Tajikistan’s Ministry of Internal Affairs. Under the terms of the deal, the Chinese side will deliver 34 intelligence devices along with additional police and counterterrorism equipment. The shipment is expected to enter Tajikistan through the Karasu border crossing. China will also dispatch eight specialists to Tajikistan to install and configure the equipment and train Tajik personnel. Their mission is expected to last 45 days. The total value of the equipment and services amounts to 52 million Chinese yuan, or approximately $7.64 million. All associated costs will be fully covered by the Chinese side. Tajikistan, for its part, has agreed to handle customs clearance, transportation and storage of the equipment once it arrives in the country. Authorities will also exempt the deliveries from taxes and customs duties and provide the necessary conditions for the Chinese specialists, including visas, accommodation, and security arrangements. A special working group will be established to coordinate with Chinese engineers during installation and personnel training. The document separately emphasizes that after delivery the two sides will jointly inspect the quality, quantity and technical specifications of the equipment before signing a formal acceptance certificate. Future operation and maintenance costs will then become the responsibility of the Tajik side. China remains one of Tajikistan’s largest strategic partners. Following President Emomali Rahmon’s recent state visit to China, Tajik officials said more than 80 cooperation documents were signed as a result of high-level talks and business meetings, while China’s Foreign Ministry referred separately to more than ten state-level cooperation documents. Earlier, Tajikistan’s parliament also approved an agreement under which China would finance the construction of nine border facilities along the Tajik-Afghan frontier. The new grant comes amid renewed scrutiny of China’s expanding role in Tajikistan’s security sector. Reports and speculation about a possible Chinese military facility in Gorno-Badakhshan have surfaced periodically, including in 2021 and again in 2024. However, Tajikistan’s Ministry of Internal Affairs and Ministry of Foreign Affairs have denied the existence of a Chinese military base on the country’s territory.

Regional Security

Tokayev Urges Central Asia and China to Strengthen Law Enforcement Cooperation

Kazakh President Kassym-Jomart Tokayev hosted the interior and public security ministers of the “Central Asia-China” format in Astana during the second meeting of regional law enforcement agencies. The meeting was attended by Chinese Minister of Public Security Wang Xiaohong, Kyrgyz Interior Minister Ulan Niyazbekov, Tajik Interior Minister Ramazon Rahimzoda, Turkmen Interior Minister Muhammet Hydyrov, and Uzbek Interior Minister Aziz Tashpulatov. Participants discussed transnational crime, drug trafficking, cybercrime, and extremism. Tokayev said strengthening cooperation between the law enforcement agencies of Central Asia and China is essential for maintaining regional stability. “Transnational organized crime is becoming increasingly flexible and interconnected. Cybercrime has evolved into a highly profitable global industry,” the president said. According to Tokayev, criminal groups are increasingly using digital platforms to coordinate activities, launder money, and carry out attacks that transcend national borders. He emphasized that Central Asia’s position at the crossroads of major transport and trade routes leaves the region particularly vulnerable to transnational criminal networks. Tokayev said Kazakhstan considers the rule of law a strategic state priority and is continuing the implementation of its “Law and Order” governance concept. He called for stronger efforts to block the financial flows of criminal organizations, suppress the spread of extremist ideology, and detect preparations for terrorist attacks. The president devoted particular attention to cybersecurity threats. “Artificial intelligence in the hands of destructive actors is becoming an information weapon,” Tokayev said. According to him, illegal content and disinformation are spreading online on an industrial scale, while existing mechanisms of international cooperation require substantial modernization. Tokayev also linked security concerns to the expansion of regional transport infrastructure, including the Trans-Caspian International Transport Route. “The growth of cargo traffic is associated with certain risks, including transnational crime and the trafficking of contraband, drugs, and weapons,” he said. In Tokayev’s view, the “Central Asia-China” format should evolve into a platform for developing coordinated and practical security measures across the region. Participants in the meeting reaffirmed their intention to expand operational information-sharing, strengthen professional cooperation, and introduce modern technologies into law enforcement activities.