China will help Kazakhstan

Victoria Panfilova, columnist of Nezavisimaya Gazeta, specially for Vestnik Kavkaza
China will help Kazakhstan

Yesterday in Beijing Kazakh President Nursultan Nazarbayev and Chinese President Xi Jinping yesterday signed a joint declaration on a new stage of comprehensive strategic partnership. The Kazakh leader paid a state visit to China. Besides official talks with the representatives of political and business circles, Nursultan Nazarbayev is to participate in the parade dedicated to the 70th anniversary of the Victory over militaristic Japan.

The main theme of the official negotiations were issues of synchronization of the transport project programs Nurly Zhol (Shining Path) and the Economic Zone of the new Silk Road, as well as the development of industrial projects. In conditions of crisis and volatility on the raw materials markets, Kazakhstan relies on the development of roads and infrastructure. "In conditions of crisis, transport projects are the most favorable. It can give an impetus to economic growth in Kazakhstan, as well support it ‘afloat’, said the director of the Analytical Center of MGIMO Andrey Kazantsev in an interview for Vestnik Kavkaza. "This direction is also very important for China. Beijing needs an alternative sea route around Eurasia. Despite the fact that rail and road routes are more expensive for China, they are strategically important and safer. Thus, Beijing diversifies the way of export-import operations, based on political-military strategic considerations."

Implementation of the Western Europe-Western China project is continuing at the moment. According to the expert, it isn’t only about access to Europe, but also to Iran and the Middle East. China also plans to join the North-South transport route, which is now being built from Russia to Iran and beyond. "Kazakhstan has a prospect to become a major transport junction for China. That is why President Xi Jinping was the first to announce the Economic Zone Silk Road project in Astana, but not anywhere else," Andrey Kazantsev noted.

China is also ready to become an investor in the industrial sector of the economy of Kazakhstan. In particular, the Chinese fund is ready to consider the possibility of signing an agreement on the financing of industrial projects in Kazakhstan worth $2-3 billion. The Chinese energy company CNPC plans to invest $150 million in building a plant for the production of large diameter pipes for the oil and gas industries in Kazakhstan. Agreements were reached in cooperation in other areas. In particular, the Kazakh side partnered with the Chinese Foundation for the Silk Road in industrial and innovative development, information technology and other sectors which are priorities for Kazakhstan. The Kazakhstan Holding Baiterek and the State Investment Corporation of China CITIC Group agreed on joint participation and development of the Kazakhstan Infrastructure Fund, the target capitalization of which is estimated at $600 million. It will invest in infrastructure projects. According to the terms of the agreement, no less than $300 million should be focused on projects in Kazakhstan. Finally, the China Development Bank is to participate in financing the construction of a plant for the production of wind power plants in the Alma-Ata region. As Nazarbayev said, "the crisis is a window of opportunities, so we are on our way to China once again in order to use these features and realize them."

However, the director of international programs of the National Strategy Institute of Russia, Yuri Solozobov, noted that Nursultan Nazarbayev didn’t intend to focus only on the Chinese direction. On the threshold of Nazarbayev's visit to China, an agreement to create an international financial center in Astana was signed with partners from the United Arab Emirates. "This is such an important step that requires amendments to the Constitution of Kazakhstan in the near future by January 1st 2016. It will provide financial contributions not only for this Central Asian state, but also for the whole Eurasian Partnership, including Russia, which is under Western sanctions. This step shouldn’t be underestimated," Solozobov said.

According to experts, Kazakhstan identifies three areas of activity for China. "Firstly, the Chinese will work in areas of infrastructure as part of the program Economic Zone of the Silk Road. It is mutually beneficial. Secondly, China will be limited in their industrial projects to the existing programs Nurly Jol. Thus, ‘‘the Chinese will be the water for the mill of Kazakhstan." And China will provide new technologies, which it has in the form of formation of renewable resources: wind farms, solar panels. They are necessary for the modernization of infrastructure of settlements of Kazakhstan. The President of Kazakhstan sticks to a restrained and proven strategic policy, based on several sources at once, which will allow each other both to compensate and balance at the same time. This step doesn't allow the domination of strategic investors over sovereign Kazakhstan,’’ said Yuri Solozobov.

Nursultan Nazarbayev congratulated the Chinese people on the 70th anniversary of the Victory in the War of Resistance against Japanese militarists, as well as winning Beijing’s bid to host the Winter Olympics in 2022. "Beijing will become the only city in the world to have hosted both the summer and winter Olympic Games," Nazarbayev noted. His visit is to last until September 3rd.

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