Uzbekistan’s tourism industry is thriving, with 6.5 million foreign visitors from January to October 2024, fueled by a 17.2% year-on-year increase, or 951,300 more visitors compared to the same period last year.
Among these tourists, 57,700 were from China, marking a 63.1% rise and making China the leading source of visitors outside the Commonwealth of Independent States (CIS).
China’s interest in landlocked Uzbekistan comes as no surprise. Rich in natural resources and brimming with untapped potential, Uzbekistan stands as a promising opportunity for growth and prosperity when strategic investments are managed effectively.
For instance, China continues to dominate Uzbekistan’s trade scene, accounting for 18.8% of the country’s total foreign trade turnover as of October 2024. Bilateral trade between the two nations reached $10.2bn, with Uzbekistan exporting $1.7bn worth of goods to China and importing $8.5bn in return.
While this was a slight dip from the $10.8bn in 2023, China has maintained its position as Uzbekistan’s largest trade partner since 2020, thanks in part to strategic agreements like the Bilateral Investment Treaty (BIT) and the Agreement on Avoidance of Double Taxation (DTA).
Additionally, China’s investment footprint in Uzbekistan is hard to miss. By the end of 2022, China had invested a total of $4.5bn, with over 2,000 Chinese enterprises operating in the country as of January 1, 2024. These businesses span a wide range of sectors, from oil and gas exploration to infrastructure development, automotive assembly, agriculture, and textiles.
Projects include the Pengsheng Industrial Park, which focuses on construction materials and modern agriculture with a $129mn investment, and the Anjiyan Textile Park, which specializes in textile production, backed by more than $64mn. The Luoyang-Bukhara Agricultural Cooperation Zone takes this partnership to the next level, blending agricultural cultivation with industrial activities for a dynamic collaboration.
Agriculture has blossomed as a key area of collaboration between Uzbekistan and China in recent years. Uzbek exports, such as cherries, apricots, and dried fruits are hitting the sweet spot in China, while Chinese investments in agri-tech are giving Uzbekistan’s productivity and export game a major boost.
When it comes to green energy, Uzbekistan’s renewable ambitions are getting a powerful push from Chinese know-how. A standout project, a 1 GW solar power plant under the Belt and Road Initiative, is a shining example of both nations’ dedication to a greener, more sustainable future.
In addition, on December 5, Uzbekistan’s Uzatom and China National Nuclear Corporation Overseas (CNOS) signed a cooperation agreement, setting the stage for small nuclear power plants and improved uranium processing in Uzbekistan. This follows earlier talks about tapping into China’s expertise to enhance the country’s nuclear energy capabilities.
The digital transformation of Uzbekistan is another exciting frontier of opportunity. With plans to expand its digital infrastructure, Chinese companies are stepping in with cutting-edge technologies like 5G networks and e-commerce platforms. These innovations are set to supercharge Uzbekistan’s digital economy, making it more efficient and connected than ever before. It’s a win-win that promises to drive growth and elevate the country’s technological landscape.
Two major Chinese firms — CITIC Construction and China CAMC Engineering — were also chosen to kick off irrigation reconstruction projects in 2025. These projects will be supported by the Export-Import Bank of China, pending the green light on feasibility studies.
There has also been good news for Uzbek passport holders, with a new visa-free agreement signed recently by Uzbekistan’s Foreign Minister Bakhtiyor Saidov and China’s Foreign Minister Wang Yi, allowing citizens of both countries to visit each other for up to 30 days. This follows Uzbekistan’s 2021 move to grant Chinese citizens a 10-day visa-free stay.
China, the world’s second-largest economy, has a major impact on global trade and investment trends. Its substantial investments in Central Asia, particularly Uzbekistan, are driven by several strategic factors. Rich in natural resources, Central Asia meets China’s energy needs, with Uzbekistan serving as a key source of oil and gas to fuel China’s drive for energy security. Uzbekistan is also a critical player in China’s Belt and Road Initiative (BRI), which aims to boost connectivity and trade routes between China and Europe, while promoting infrastructure development and regional economic integration.
These investments open up new markets for Chinese products, reducing reliance on traditional markets, and strengthen China’s position in the region, balancing Russia’s influence. Ultimately, Chinese investments are focused on enhancing infrastructure, fostering connectivity, and supporting local economies for long-term growth.
