• USD12780.09
    • RUB131.67
    • EUR13889.4
    Uzbekistan

    Uzbekistan's strategic leap: $21bn Chinese investment boosts trade and development

    Uzbekistan's strategic leap: $21bn Chinese investment boosts trade and development

    Earlier Daryo reported that President Shavkat Mirziyoyev of Uzbekistan emphasized the unparalleled strength of relations between Uzbekistan and the People's Republic of China, highlighting the forthcoming visit as a symbol of the exceptional phase in their history.

    Photo: President Shavkat Mirziyoyev and President of the People's Republic of China
    Source: Daryo

    In an interview for Daryo, Abdulla Abdukadirov, First Deputy Director of the Agency for Strategic Reforms under the President of Uzbekistan, affirmed the visit's importance. Notably, the substantial investments and loans from China in Uzbekistan's economy surpassed $4 bn in the past year.

    Photo: Flags of China and Uzbekistan
    Source: Daryo

    Achieving an effective import structure, particularly through increased imports of equipment for industrial production and metalworking, is identified as a key goal. Leveraging China's expertise in simplifying product certification processes and unifying trade rules is seen as a pathway to enhance the speed and efficiency of trade between the two nations.

    Photo: First Deputy Director of the Agency for Strategic Reforms under the President of Uzbekistan
    Source: Daryo
    "During 2020-2023, the volume of accumulated Chinese investments and loans in the economy of Uzbekistan in all directions amounted to just over $21 bn. This sets a good basis for solving a number of serious problems on a mutual basis. For example, the development of the Trans-Afghan corridor through Uzbekistan. Uzbekistan strives to become one of the logistics centers connecting East and West. This is our main concern and top priority. Another issue is, of course, the exchange of experience in the development of foreign trade. Most of the imports from China are industrial products, machinery and equipment. However, inside the cars, an increasingly large part consists of consumer goods, which do not create internal added value for Uzbekistan. It would be great to import more tractors, machine tools, machinery and mechanisms. First of all, for the development of productive forces and business. It is necessary to develop metalworking in Uzbekistan. China's experience in saturating the domestic market with metal products based on primary metalworking and mechanical engineering will be very useful. The second and very important area of intensifying foreign trade is the issue of certification and advanced training of participants in foreign economic activity, that is, entrepreneurs. You should also pay attention to how to combine trade and logistics rules. This is necessary so that goods move between Uzbekistan and China faster, without unnecessary procedures, etc.," noted Abdukadirov.

    What further growth do you expect?

    At the end of 2023, the volume of mutual trade between China and Uzbekistan exceeded $13.7 bn. Thus, imports amounted to about $2.5 bn, and exports - $11.2 bn. Despite the fact that 91% of the total imports are industrial and chemical goods, machinery, and equipment, we would be happy to import more equipment for metalworking, small and medium-sized mechanical engineering. I think that these are the questions that will be the subject of conversation between our president and the chairman of the PRC.

    Photo: First Deputy Director of the Agency for Strategic Reforms under the President of the Republic of Uzbekistan Abdulla Abdukadirov on mutual trade with China
    Source: Agency for Strategic Reforms under the President of Uzbekistan

    China and Uzbekistan maintain close ties within the UN, SCO and other international structures. How important is it to strengthen cooperation to continue to protect common interests and make a positive contribution to security and progress around the world in a difficult time when pressure, bias and unilateralism dominate on the part of individual countries?

    Abdulla Abdukadirov reports that popular proverb says: “If your neighbor lives in peace and everything is fine with him, then you live well and peacefully.” Therefore, we pay more attention to how things are going in the economy, politics and social sphere. Our neighbors are the countries of Central Asia and, of course, China and Russia. Therefore, we place greater importance on our relationships with them. In this context, we strive to pursue a policy of equality on a bilateral and multilateral basis and to pursue those interests that will bring us the greatest benefit in all countries. First of all, in matters of developing trade and logistics routes connecting Uzbekistan and these countries. This will, first of all, allow goods to move faster, without bureaucratic barriers, so that unnecessary tariffs, non-tariff and non-tariff barriers do not arise in the way of goods and people. When this is achieved, everything will change.

    Earlier Daryo reported that China has become the main trading partner of Uzbekistan.

    Follow Daryo's official Instagram and Twitter pages to keep current on world news.

    On this topic

    Leave A Reply

    ×Lightbox Image