Chinese Investments Fuel Growth Across Central Asia

Chinese foreign direct investment (FDI) in Central Asia is steadily rising, boosting regional economies and modernizing infrastructure, according to a report by the Eurasian Development Bank (EDB).

The report, “China and the Eurasian Region: An Analysis of Investment Flows,” shows that China is strengthening its presence in energy, infrastructure, and manufacturing sectors while supporting environmental improvements and economic growth, The Caspian Post reports via Tajik media.

Accumulated Chinese FDI in Central Asia grew from $19.6 billion in 2016 to $35.9 billion by mid-2025. Kazakhstan received 32 per cent, Uzbekistan 30 per cent, Turkmenistan 27 per cent, Tajikistan 6 per cent, and Kyrgyzstan 5 per cent.

Tajikistan has seen FDI rise from $1.4 billion to $2.2 billion, primarily in raw materials and manufacturing. Key projects include the Talco Gold mine in Sughd province and solar power initiatives by Eging PV Technology and China Datang Overseas, with a total capacity of up to 2 GW planned between 2025-2028.

Kazakhstan has attracted $11.4 billion in Chinese FDI, with investments in manufacturing, energy, and infrastructure. Major projects include Sinopec’s Silleno gas chemical complex, a metallurgical plant in Shymkent, and wind farms in Bukhara.

Kyrgyzstan has received $2.1 billion in Chinese FDI, focusing on mining, manufacturing, and infrastructure projects such as a solar power plant and the Kyrgyzstan-Uzbekistan railway.

Turkmenistan’s FDI rose to $9.5 billion, mainly in energy, with the Bagtyyarlyk gas field development led by China National Petroleum Corporation (CNPC) and a shift toward operational projects in recent years.

Uzbekistan has become the second-largest recipient of Chinese FDI in the region, totaling $10.7 billion. Investments are concentrated in energy (51 per cent), manufacturing (31 per cent), and renewable energy, including a $3.3 billion olefin complex in Bukhara, wind farms, and gas infrastructure projects.

The EDB report highlights China’s growing influence in Central Asia as a key driver of economic development, regional connectivity, and renewable energy expansion.