TRADE AND ECONOMIC COOPERATION BETWEEN CHINA AND KAZAKHSTAN: PROBLEMS AND PROSPECTS

Abstract

The thirty years of Kazakhstan’s independence have been characterized by rapid growth of trade and economic cooperation with China, one of the world’s largest economies, which has steadily increased its presence in the region. Based on statistics published by the General Administration of Customs of the People’s Republic of China and the National Bank of Kazakhstan, legal and regulatory documents of the two countries and reports by international organizations, this article examines the specific features and further prospects of bilateral cooperation between China and Kazakhstan in the field of trade, investment, and energy, as well as in implementing integration projects. The authors have identified the main stages of interaction between the two countries, the problems they encounter, and the opportunities for trade and economic cooperation, which has developed rapidly since the turn of the century. Objectively, this process is mutually beneficial for both sides, especially in the sphere of energy, promotion of infrastructure projects, establishment of joint ventures, and other long-term plans. However, despite the positive dynamics of this process, the article identifies a number of negative phenomena in trade and economic relations. Overall, trade declined because of the drop in oil prices and the resultant weakening of Kazakhstan’s national currency tenge, since oil is the basis of the country’s exports. At the same time, when trade indicators began to improve after 2017, some negative phenomena were still in evidence. They were primarily due to the consequences of the pandemic, an increase in Sinophobia, and Kazakhstan’s participation in new regional projects, such as the Eurasian Economic Union (EAEU). In the authors’ opinion, investment specifics and trade asymmetry are the main areas where both parties should adjust their approaches in order to tap the full potential of cooperation in these sectors.