China is the largest exporter of investments in the Eurasian region. By mid-2024, China’s direct investment stock amounted to $58.6 billion, according to the Eurasian Development Bank’s study titled “Mutual Investments on the Eurasian Continent: New and Traditional Partners”.
China’s investments are traditionally concentrated in the extractive industries ($36.2 billion).
Over 18 months (2023 – mid 2024), Investments in the electric power industry increased to $4.1 billion (i.e. by 2.1 times), 85% of them directed to Uzbekistan (solar and hydroelectric power plants).
Investments in the manufacturing sector increased to $11.8 billion (i.e. by 8%) over the same period.
97% of the investments went to Central Asia: the recipients included an automobile plant in Uzbekistan and a porcelain stoneware factory in Kazakhstan.
Central Asia accounts for 47% of total Chinese investments, or $27.7 billion. The stock of FDI from China to Central Asia has grown by 41% since 2016. In terms of growth since 2022, Central Asia is outperforming, with growth rates twice as high as in the Eurasian region as a whole — 14% against 7%, respectively.
The main recipients of investments in Central Asia are Kazakhstan ($10.4 billion at the end of 1H 2024), Uzbekistan ($4.3 billion), and Turkmenistan ($9.5 billion).
Major projects in Central Asia are in extractive industries. In recent years, electricity generation has played a dominant role in major project launches.
A number of significant electricity generation projects are underway:
- A solar power plant in Uzbekistan. China Poly Group and China Electric plan to invest $350 million in the project.
- A gas turbine plant in Uzbekistan. In 2022, China’s sovereign Silk Road Fund acquired a 49% stake in the future power plant from ACWA Power (Saudi Arabia). The investment is worth $345 million.
- Pumped storage power plants in Uzbekistan. Construction began in 2H 2023. The expected date of commissioning is 2030. The investor company is China Southern Power Grid International. The planned total investment is $1.6 billion.
- A wind farm in Kazakhstan. The greenfield project worth $140 million is being implemented by China Power International Holding Ltd.
Largest Projects Involving Investors from China in Extractive Industries in the Eurasian Region
- Bagtyyarlyk is a hydrocarbon field development project being implemented by CNPC in Turkmenistan. The investment stock is $9.4 billion.
- Bold Tumur Eruu Gol LLC is implementing a project to develop an iron ore deposit in Mongolia. The investment stock is $5 billion.
- The Yamal LNG project involves the production, liquefaction, and supply of natural gas and is being implemented with CNPC in the Yamal-Nenets Autonomous District, Russia. The investment stock is $4.3 billion.
The full text of the reports is available here: https://eabr.org/en/press/news/the-edb-monitoring-the-direct-investment-stock-by-china-t-rkiye-and-the-gulf-states-in-the-eurasian-/ ///nCa, 21 February 2025