Geopolitical Balance vs Economic Benefits. The Chinese Vector in Mirziyoyev’s Foreign Policy
The progressive disengagement of Western actors—and the United States more in particular—from
the Central Asian arena and, as we will see below, the ambiguous agenda promoted by Russia
through the Eurasian Economic Union (EAEU) reduced the range of options available to Uzbekistan
to achieve the economic growth agenda pursued by the regime in Tashkent.
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In this sense, the
strengthening of relations with China has to be seen as an inevitable foreign policy development for
post-Karimov Uzbekistan.
A pragmatic approach, based on business relations rather than on political proximity, is
underpinning Mirziyoyev’s approach to foreign partnerships in general and that developed with the
People’s Republic of China more in particular. Through participation in China-led initiatives of
infrastructure development, Uzbekistan intends to address the legacy of economic isolation
bequeathed by the Karimov regime. The attraction of Chinese investment, moreover, appears
instrumental to boost the Uzbek industrial and agricultural sectors. Perhaps due to the limited
presence of Chinese nationals in Uzbekistan, the Uzbek public discourse has been generally defined
by the absence of a number of distinct Sinophobic tropes that are conversely thriving in other
Central Asian communities, and those living in Kazakhstan and Kyrgyzstan more in particular.
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The
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Eldor Aripov, Uzbekistan Works to Reshape Central Asia, The Central Asia-Caucasus Analyst, November 2017,
https://www.cacianalyst.org/publications/analytical-articles/item/13480-uzbekistan-works-to-reshape-central-asia.html; Luca Anceschi,
The Resurgence of Central Asian Connectivity, The Diplomat, December 2017, https://thediplomat.com/2017/11/the-resurgence-of-
central-asian-connectivity/; On Mirziyoyev’s coordinating role in the region during the Covid-19 pandemic, see: Bruce Pannier, Mirziyoev
Steps Up As COVID-19 Crisis Increases Contact Among Central Asian Leaders, Radio Free Europe/Radio Liberty, April 2020,
https://www.rferl.org/a/mirziyoev-steps-up-as-covid-19-crisis-increases-contact-among-central-asian-leaders/30523898.html
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The major reasons are the withdrawal of the US/NATO troops from Afghanistan, underway since 2014, and the implementation of a
more isolationist US foreign policy since the accession to power of Donald J. Trump.
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For a wider discussion of this issue, see: Peyrouse, Sebastien. 2016. Discussing China: Sinophilia and sinophobia in Central Asia. Journal
of Eurasian Studies 7 (1): 14-23.
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latter consideration may be said to remove a key hurdle to the development of working economic
relations between Uzbekistan and China.
Beyond the acceleration imposed in the post-Karimov era, the Sino-Uzbek partnership had come to
experience a timidly upwards trajectory in the late 2000s. In 1992-2002, bilateral trade turnover did
not exceed US$140 million a year; by 2008, this figure had increased tenfold to reach approximately
US$1.3 billion.
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The fundamental structure of this relationship conformed to the regional norm in
Sino-Central Asian commerce: Uzbekistan’s trade with China, throughout the 2000s, developed
around the export of raw materials purchased by Chinese partners and the import of industrial
goods produced in China into the Uzbek domestic economy.
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The overall partnership developed
further with the opening of the China-Central Asia natural gas pipeline in late 2009, when Uzbekistan
began to benefit from the transit fees associated with the delivery of Turkmen gas to the Chinese
market. The entry into the pipeline had a substantive impact on Sino-Uzbek bilateral trade, which
grew by approximately US$500 million in 2009, somewhat sheltering the rest of the Uzbek economy
from the financial crisis ravaging the global economy at the time.
Yet, the most substantive input to the expansion of bilateral economic relations crystallised after
Mirziyoyev’s accession to power in late 2016, as the economic liberalisation efforts put into practice
by the post-Karimov leadership had an immediate impact on the Sino-Uzbek commercial
partnership. At the end of 2019, bilateral trade exceeded US$7.6 billion, registering a fourfold
increase from the 2010 baseline.
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Before the COVID-19 outbreak and the economic downturn the
pandemic is likely to bring forward, both parties had declared a stated interest in increasing trade
volumes to US$10 billion in 2020.
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Data on capital circulation reflects a similarly upwards trend. At the end of 2008, the total volume of
Chinese investments and loans in Uzbekistan did not exceed US$400 million.
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By the end of 2019,
Chinese involvement in the Uzbek economy had grown by more than 30 times: at the time of
writing, there are approximately US$9 billion of Chinese investments and at least US$3-4 billion of
loans active within the Uzbek economic landscape.
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Numerically, a deeper engagement can also be
grasped by looking at a related rise in the number of Chinese enterprises operating in Uzbekistan. In
mid-2016, their number barely exceeded 650, while we observed that, at the end of 2019, no fewer
than 1600 economic actors financed with Chinese capital were operating within the Uzbek economic
framework.
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A crucial step facilitating this remarkable expansion was represented by the
establishment, in 2017, of the Association of Chinese Industrial and Commercial Enterprises, a body
tasked to coordinate Chinese business activities in Uzbekistan.
There is perhaps no better way to capture the post-2016 intensification of Sino-Uzbek ties than
focusing on joint connectivity projects, a policy area wherein the globalisation agenda of the
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Paramonov, Vladimir, et al. 2009. Chinese Economic Express in the Center of Eurasia: The New Threat or Historical Chance?
Barnaul: Altai Publishing House, www.ceasia.ru/pdf/book/book_chinese_express_2010.zip
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Vladimir Paramonov, China and Central Asia: Present and Future of Economic Relations, Conflict Studies Research Centre, May 2005,
https://www.da.mod.uk/publications/category/69/China-Central-Asia-Present-Future-of-Economic-Relations0525E
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State Committee on Statistics of the Republic of Uzbekistan, Quarterly reports, 2020,
https://www.stat.uz/ru/index.php?option=com_content&view=article&id=2780&catid=183&lang=ru-RU
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Malokhat Khusanova, Negotiations between the governments of Uzbekistan and China, UzA, November 2019 ,
http://uza.uz/ru/society/peregovory-mezhdu-pravitelstvami-uzbekistana-i-kitaya--01-11-2019?sphrase_id=5735984.
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Paramonov et al. Chinese Economic Express in the Center of Eurasia: The New Threat or Historical Chance?
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Khusanova, Negotiations between the governments of Uzbekistan and China; Authors’ estimate based on data included in:
Vladimir Paramonov, Uzbekistan Initiative Papers No. 5, Central Asia Program, February 2014,
http://centralasiaprogram.org/archives/7839.
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Press Service of the President of the Republic of Uzbekistan, Uzbekistan – China: A new stage of cooperation – a comprehensive
strategic partnership, Ministry of Foreign Affairs of the Republic of Uzbekistan, June 2016,
https://mfa.uz/ru/press/news/2016/06/7671/?print=Y; State Committee on Statistics of the Republic of Uzbekistan, Analysis of the
demography of enterprises and organizations of the Republic of Uzbekistan, January 2020, https://stat.uz/ru/press-tsentr/novosti-
komiteta/8241-2020-yil-1-yanvar-holatiga-yuridik-shaxs-bo-lgan-korxonalar-va-tashkilotlar-demografiyasi-bo-yicha-tahliliy-ma-lumot-2.
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Mirziyoyev regime intersects quite evidently with the large-scale infrastructure development plan
brought forward by Xi Jinping under the One Belt, One Road initiative. There are two particular
projects that illustrate with greater precision the recent progress made in this specific area.
Discussed since the 1990s, the Kashgar—Irkeshtam—Osh—Andijan highway had essentially failed to
take off during the Karimov era. Mirziyoyev’s accession to power removed many of the political
obstacles and trade barriers obstructing the completion of highway’s Uzbek sector; it is therefore no
coincidence that the completion of this project came to fruition under the new Uzbek leadership.
Corresponding agreements were finalised during Mirziyoyev’s visit to China in May 2017, and the
route started functioning properly in February 2018. As part of the further development, the
government in Tashkent is now committed to the construction of the road tunnel through the
Kamchik pass.
Since the late 1990s, the parties involved in the Uzbekistan—Kyrgyzstan—China railway reiterated
their interest in the project’s completion. Financial issues and political hurdles have so far impeded
project development in the Kyrgyz territory. With the support of China, a significant amount of work
has already been done in the railway’s Uzbek sector, with particular reference to the completion of
the railway tunnel through the Kamchik pass and the electrification of the Andijan—Kokand—Pap
segment of the railway, an outcome that, before the outbreak of COVID-19, was expected to be
achieved in late 2020.
Interestingly, the intensification illustrated here had ultimately aligned the fundamental context
wherein Uzbekistan interacts with China to the key dynamics defining China’s relations with other
Central Asian states. Given the growing financial dependence and the development of transport
communications with China, how can Uzbekistan—and the rest of Central Asia more broadly—avoid
the scenario of becoming a raw material appendix of the Chinese economy? Unfortunately, there is
no clear answer to this question yet, as the Mirziyoyev strategy to approach China is still in its early
implementation stages, while early data confirmed that the economic immobility resulting from the
COVID-19 outbreak is likely to indefinitely crystallise the core of the relationship around the specific
range of issues treated in the preceding paragraphs.
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