Chinese Projects in Central Asia: Investment, Infrastructure, and Labor Relations (SCIENTIFIC RESEARCH)

Summary

• China provided grants for infrastructure: Kyrgyzstan received more than US$300 million and Tajikistan approximately US$230 million.p.3
• Kazakhstan Invest published an overview of 55 joint Kazakh–Chinese projects with a combined value of US$27.6 billion.p.6
• Of those projects, 15 had been completed, 11 were under implementation, and 29 remained under consideration.p.6
• Zijin Mining Group holds a 60% stake in Altynken LLC, whose gold output reached 133,335 ounces in 2019.p.7
• TBEA's US$331 million investment in a 400-megawatt power plant in Dushanbe was financed through a preferential loan from China Eximbank.p.8
• Uzbekistan and China agreed to establish a joint investment fund with authorised capital of US$1 billion.p.9
• Employment quotas for local workers in Central Asia are reported to range from 70% to 90%, and compliance is not always assured.p.12

Key insights

1. Chinese investment supports energy, transport, mining and industrial cooperation, while labour outcomes differ by country, sector and enterprise.p.1
2. CNPC holds 85.42% of the shares of Aktobe Munay Gas.p.6
3. Trade unions were present in three of the four Chinese-owned mining companies in Kyrgyzstan and represented approximately 90% of their employees.p.7
4. Proposed Uzbek–Chinese power and wind projects were reportedly valued at US$720 million.p.9
5. PwC estimated that BRI could mobilise as much as US$1 trillion in Chinese state-backed overseas financing over a ten-year period.p.11
6. Tax concessions granted to Chinese companies in Tajikistan raise questions about transparency and consistent application of domestic rules.p.8
7. Chinese public financing and state support can improve the risk-return profile of infrastructure projects, creating opportunities for private-equity firms.p.4
8. The evidence does not establish uniform labour practices across Chinese-invested enterprises.p.13