Chinese exports - The Times Of Central Asia

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Real estate

Uzbekistan Emerges as Key Market for China’s Real Estate Giants

Since 2021, China’s property sector has been navigating one of the most severe downturns in its history. A combination of mounting developer debt, strict government lending rules, and a large stock of unsold housing has pushed the country’s real estate giants into prolonged distress. As speculative construction slows at home, Chinese companies are increasingly turning outward. Similar to firms in renewable energy, waste-to-energy, and electric vehicle industries, real estate developers now see foreign markets as essential for restoring balance and sustaining growth. In this broader search for new opportunities, Uzbekistan has emerged as a highly compelling destination for Chinese investment. The country offers a rare mix of rapid demographic growth and urgent housing needs that few markets can match. Uzbekistan’s population is expanding at a fast pace, and more than 60,000 new households form every year. This demographic surge is placing enormous strain on the country’s already limited housing stock. Official data shows that around 85,000 families are waiting for housing, yet annual construction increases the existing stock by only one to two percent. The result is a persistent shortage that cannot be resolved without sustained and large-scale capital investment. If this deficit remains unaddressed, it risks creating long-term social frustration. Against this backdrop, the interests of Chinese real estate developers and Uzbekistan’s housing priorities are beginning to align. Chinese firms looking for stable and high-demand markets increasingly view Uzbekistan as an attractive place to expand. Tashkent, in particular, has become a center of growing cooperation with Chinese partners. Several recent agreements illustrate this momentum. The Chinese firm TSC HK Investment is preparing a $340 million project for a residential complex and business center in the Chilanzar district of Tashkent. The city authorities have also signed agreements worth about $1 billion with CSCEC, including a major housing development valued at $440 million. Beyond the capital, another Chinese investor plans to allocate $250 million to build a modern complex covering 55 hectares in the city of Babur in the Andijan region. For Chinese companies, Uzbekistan offers a large and expanding market that helps absorb China’s massive overcapacity in construction services, heavy machinery, and industrial materials such as steel and cement. Investing in Uzbekistan not only eases domestic economic pressure but also allows Chinese firms to demonstrate their capabilities in shaping the daily lives of Uzbek families. Large residential projects provide opportunities to familiarize local communities with Chinese standards, technologies, and urban design practices. When these projects are executed successfully, they can contribute to a positive image of China and strengthen its soft power presence in the country. For Uzbekistan, China’s growing involvement brings several advantages. Chinese investment can help meet the country’s rapidly rising demand for housing and reduce the likelihood of long-term social frustration linked to shortages. Chinese developers often work with integrated models that go beyond simple residential blocks. They build high-density and multi-functional complexes combining housing, business centers, educational facilities, and public services. This approach aligns closely with Uzbekistan’s strategy to encourage sustainable urbanization, improve living conditions, and...

Automobile Industry

China’s “Used” Car Exports to Central Asia Raise Questions Over Trade Practices

China has recently surpassed Japan to become the world’s largest automobile exporter. Yet behind this headline lies a controversial trade tactic: the mass export of brand-new vehicles categorized as “used.” Since 2019, this strategy has become a key component of China’s vehicle trade with regions including Central Asia, Russia, and the Middle East. A Reuters investigation has revealed that these so-called “zero-mileage used cars” are new vehicles that are briefly registered in China to obtain domestic license plates, then exported abroad without being driven. This approach allows automakers to classify the cars as “sold,” enabling local governments to boost export figures and manufacturers to reduce unsold inventory from an increasingly saturated domestic market. “This is the outcome of an almost four-year price war that has made companies desperate to book any sales possible,” said Tu Le, founder of the Michigan-based consultancy Sino Auto Insights. Local Governments Fuel the Export Boom At least 20 provincial and municipal governments in China, including major industrial hubs like Guangdong and Sichuan, actively support this model. Local incentives include issuing additional export licenses, offering tax breaks, investing in export-related infrastructure, and providing free warehouse space near border zones These measures align with national macroeconomic objectives and offer local officials a tool to demonstrate economic performance through export statistics. Central Asia: A Strategic Destination Central Asia has emerged as one of the primary destinations for these vehicles. Many of the exported models are gasoline-powered, as China pivots to electric vehicles (EVs) domestically. Nonetheless, EVs, often heavily subsidized at the production stage, are also part of the export mix. William Ng, international director at Chongqing-based Huanyu Auto, reported strong profits in 2022-2023. “We were able to earn 10,000 yuan ($1,400) in profit on an electric sedan purchased for 40,000 yuan by selling it in Central Asia,” he told Reuters. However, Ng warned that the market is becoming oversaturated. “Small dealers and even livestreamers are getting involved. They used to sell wine or vases, now they’re selling cars. This is chaos.” Industry Pushback and Regulatory Scrutiny Despite short-term export gains, several Chinese automotive leaders have expressed unease. Zhu Huarong, chairman of Chang'an Auto, warned that the practice could tarnish the global image of Chinese carmakers. Xing Lei, founder of AutoXing, echoed this sentiment. “How many [sales] are real or inflated? No one knows,” he said, pointing to a growing distrust of industry data. Importing nations are starting to react. Russia has banned zero-mileage used cars from brands that already have authorized dealerships in the country. Jordan and several Middle Eastern countries have tightened regulations, redefining what qualifies as a “used” vehicle to close loopholes. These moves reflect mounting concern over what some consider a “dumping” strategy, flooding foreign markets with low-cost or subsidized vehicles that disrupt local competition and undercut domestic dealers. Why the Practice Continues China’s centrally managed economy allows for considerable leeway in how provinces achieve growth targets. Export volume, employment figures, and retail sales data are often tied to the promotion prospects of local officials....

Transit Hub

Kazakhstan Expands Role as Key Transit Hub for Chinese Exports to Europe

The inaugural Kazakhstan-China Transport Forum, held in Astana on May 15, unveiled a series of initiatives aimed at solidifying Kazakhstan’s position as a major transport and logistics hub for Chinese exports to Russia and Europe. At the forum, Kazakhstan’s Minister of Transport Marat Karabayev and China’s Minister of Transport Liu Wei discussed the development of a new multimodal transit corridor linking Russia, Kazakhstan, and China. The route will utilize the transboundary Irtysh River, as well as the Ili River, establishing a navigable link from the Kazakh city of Kunayev to Yining in China’s Xinjiang region. Key infrastructure plans include the construction of a new cross-border bridge at the Maykapshagay-Zimunay checkpoint to accommodate heavy trucks and the opening of a third international air corridor between the two countries. The ministers also discussed establishing two new road checkpoints to better connect East Kazakhstan and the Almaty regions with China. By the end of 2025, Kazakhstan aims to complete two major rail infrastructure projects: the second track on the Dostyk-Moiynty railway and a bypass line around Almaty station. These upgrades are expected to significantly boost freight capacity and cut cargo transit times between China and Europe via Kazakhstan. Additional developments include the launch of a direct passenger train between Almaty and Xi'an and an expansion of flight services between the two nations to 65 per week. Meanwhile, construction is underway on a new container hub at the Caspian Sea port of Aktau, a joint venture with a Chinese company. Scheduled for completion by year’s end, the facility will expand the port’s annual capacity from 140,000 to 240,000 TEUs. Kazakhstan’s Ministry of Transport reports that in the first quarter of 2025, road freight volumes between Kazakhstan and China surged by 82%, reaching 822,000 tons. Rail freight volumes grew by 13% over the first four months of the year, totaling 11.4 million tons. These developments highlight Kazakhstan’s growing strategic importance in transcontinental logistics, as China continues to diversify its export routes westward.