Central Asia has long been stuck between a rock and hard place in terms of its geopolitical environment. Landlocked, with China to the east and Russia to the north and west, Central Asian leaders have had to balance their alliances with the powers that surrounded them.
In pre-Soviet times, Kazakh, Kyrgyz and Uzbek leaders would utilize relationships to gain wealth for their countries. After the dissolution of the Soviet Union it became more about security, making sure the newly-formed states were not overrun by the bigger boys. To this end, Central Asian states entered into regional cooperative organizations with China and Russia like the Shanghai Cooperation Organization in the hopes of controlling the influence each power exerted on the five nation states.
25 years on, this struggle to balance relations has failed and China is now poised to make a spectacular economic conquest of Central Asian markets.
In 2015, China became Uzbekistan’s largest trading partner with $3 billion worth of trade and Kazakhstan’s largest investor with 33 deals delivering $23.6 billion to the nation.
China has also focused heavily on Turkmenistan’s energy sector, where it has been purchasing some 30 billion cubic meters of gas a year since 2009 while providing substantial military aid. China also took over in Kyrgyzstan last month as the builder and partner in two hydropower projects. (more…)
