Tag: Uzbekistan

  • Is China Taking Over Uzbekistan?

    Is China Taking Over Uzbekistan?

    China, a major investor in global infrastructure, is often accused of using its financial power to bind countries to its influence, exploit resources, and bribe local politicians. Many nations have fallen into debt traps, ultimately ceding control of critical infrastructure to China—a form of economic colonization without territorial rule.

    This strategy is becoming increasingly visible in mineral-rich Central Asia. As Russia’s dominance in the region wanes, China is rapidly expanding its investments, securing access to natural resources, and integrating local economies into its business networks. In these poorly managed economies, Chinese influence is growing, raising concerns among citizens. However, with limited political opposition—reminiscent of Russia’s model—public frustration is largely channeled through social media.

    A Deep Relationship

    Although Uzbekistan and China do not share a border, their historical and economic ties run deep. The land and cities that now make up Uzbekistan were once integral to China’s ancient Silk Road, serving as key hubs of trade and cultural exchange. Today, this connection endures through modern diplomatic and economic frameworks between the People’s Republic of China and the Republic of Uzbekistan.

    China is Uzbekistan’s largest trading partner, though this relationship has created a significant trade imbalance. In 2024, bilateral trade reached $13.8 billion, with Uzbekistan exporting only $2 billion worth of goods while importing $11.8 billion from China. Additionally, China is the country’s largest creditor—President Shavkat Mirziyoyev’s administration, which has been borrowing heavily to fund economic modernization, now owes Beijing at least $3.8 billion.

    Beyond trade, cultural ties between the two nations have deepened through official agreements. Since 2017, China and Uzbekistan have engaged in cultural exchanges, including seminars, exhibitions, and performances. China has also contributed to the restoration of Uzbekistan’s cultural heritage sites, while Chinese and Uzbek state media collaborate on joint productions.

    Intensifying Anti-China Sentiment

    While the Uzbek government maintains strong ties with China at the official level, public sentiment tells a different story. Anti-Chinese sentiment is rising in Uzbekistan, driven by influential social media channels. In February, reports surfaced alleging that Chinese entities and individuals were purchasing and securing long-term leases on properties in major Uzbek cities, including Tashkent, as well as acquiring prime land for mining and agricultural ventures.

    Many online discussions have framed China’s growing economic footprint as a direct threat to Uzbekistan’s sovereignty. A widely shared video on the Demokrat UZ YouTube channel garnered over a million views, amplifying concerns over Chinese influence. Similarly, Fazliddin Shahobiddin, an influential YouTuber who analyzes current affairs from an Islamic perspective, claimed that Uzbekistan is being bought up by China. His post attracted more than 1.8 million views, with a majority of the 12,000 comments echoing anti-Beijing sentiment, some even urging Uzbeks to recognize what they see as an encroaching Chinese presence in the country.

    How will it evolve?

    Uzbekistan depends on China. While the United States, Europe, and their Asian allies—such as Turkey, South Korea, and Japan—are seeking closer ties with the resource-rich nation, Uzbekistan’s leadership remains firmly aligned with Russia. Without Moscow’s backing, the country risks political instability, including potential unrest and challenges to the current government. Given Uzbekistan’s consistently low rankings on global democracy indices, meaningful cooperation with the West remains difficult.

    In this context, China emerges as Uzbekistan’s most viable partner—economically dominant, technologically advanced, and closely linked to Russia. Beijing is taking full advantage of this dynamic, even working to curb the influence of other Russian allies like India, which lacks both the financial muscle and, perhaps, the political will to compete in Uzbekistan through large-scale investments or transactional diplomacy as China does.

    Amid growing public resentment toward China, the Uzbek government is actively working to suppress negative sentiment. Officials are eager to avoid a scenario like that in Pakistan, where anti-Chinese backlash led to targeted violence against Chinese nationals. To counter the rising hostility, authorities have launched a media campaign emphasizing the benefits of deeper economic cooperation. Yet initial efforts to reassure the public have failed to stem the tide of online criticism, forcing the government to intensify its PR strategy. 

    Given the government’s reliance on China, its efforts will likely go beyond media campaigns to include suppressing dissent, particularly on social media. Like many other authoritarian regimes in Asia, Uzbek authorities understand that their political survival is increasingly intertwined with their ties to Beijing. While not a direct takeover, China’s expanding influence is gradually steering Uzbekistan’s political landscape in its favor.

  • Will the Turkic States Group Become a Major International Player?

    Will the Turkic States Group Become a Major International Player?

    Turkic and Turkey might sound confusing, like Turkey the bird and Turkey the country, but there’s a distinction. Turkey is a Turkic state, but not all Turkic states are Turkey. Let’s not drag this into more confusion: Turkic states are a group that includes Turkey. They share a common ethnic background, similar language, cuisine, and almost identical culture, extending from Kazakhstan to Turkey. This includes most Central Asian countries except Tajikistan, the Caucasian state Azerbaijan, and Turkey (Türkiye). Some even include Hungary due to historical and linguistic ties.

    Currently, these countries are part of an evolving group that can influence Asian politics, global politics, and the global economy. They support and care for each other, with kebabs being a beloved symbol of their shared culture. Historically, the political evolution of this group was limited due to Russian influence. Now, they are free and more united.

    The Organization of Turkic States (OTS) is the union of Turkic states that we are discussing. It includes Kazakhstan, Uzbekistan, Kyrgyzstan, Azerbaijan, and Turkey as full members, with Turkmenistan, Hungary, and Northern Cyprus as observers. The OTS was founded in 2009 to strengthen the bond between these countries. During the 8th summit in 2021, the organization was restructured to enhance cooperation, with refreshed objectives ranging from trade to extradition agreements. While many believe the OTS’ main aim is cooperation and growth, others think the organization’s main objective is the cultural revival of Muslim Turkic culture and protection from external influences, such as Russia’s historical cultural integration with Central Asian countries. As OTS eagerly pursues expanded trade relations with the West, the leaders of Turkic states in Eurasia are cautious about importing Western values. 

    The latest summit of the OTS was held in Azerbaijan, showcasing the dichotomy of interests among the Turkic heads of state. Hosted by Azerbaijani President Ilham Aliyev in the Nagorno-Karabakh town of Shusha, a region recently recaptured from Armenia, Aliyev highlighted in his opening remarks his vision for the Organization of Turkic States (OTS) to become an influential global entity capable of protecting regional interests from outside influence. He emphasized that the OTS should become one of the prominent international forces, stressing the commitment of their peoples to traditional values and shared ethnic roots that closely bind their countries. According to him, the 21st century must be a century of progress for the Turkic world.

    After praising traditional values and shared heritage, Aliyev stressed the significance of enhancing trade, declaring, “Expanding the East-West transport corridor is among our foremost priorities”. His sentiments were echoed by other participants, including Kazakhstan’s president, Kassym-Jomart Tokayev, who stressed the need to utilize the full potential of the Trans-Caspian international transport route. Hungarian Prime Minister Viktor Orban, who attended the Shusha summit, referred to the OTS as a “Very important organization for cooperation between the West and East”.

    Aliyev urged his fellow heads of state to show greater commitment to the OTS through increased budget allocations, noting Azerbaijan’s recent $2 million contribution to enhance the OTS secretariat. They recognize the economic potential of the bloc, as member countries are rich in minerals and generate significant revenue from their resources. With Russia’s influence weakening, superpowers such as China, India, Korea, and the United States are keen to explore opportunities in the region. It is believed that uniting these countries will increase their scope and opportunities.

    Political scientists believe that the OTS represents a solution for Turkic leaders to navigate their complex political relationships. Aliyev’s efforts to bolster the OTS come at a time when Baku’s relations with the West have deteriorated. Over the past year, Aliyev and other top Azerbaijani officials have openly expressed grievances against the U.S., France, and major European bodies. In his inaugural address in February, Aliyev signaled further divergence from the West, speaking enthusiastically about pan-Turkic cooperation. Although Aliyev appreciates ties with Russia, they maintain a certain distance. Azerbaijan frequently boasts of its friendship with Pakistan, considers Turkey a brother, and is open to cooperation with India and Iran for trade. While trade is welcome, maintaining Turkic identity is their top priority. This sentiment is shared by other Turkic states, which rely on trade with various superpowers  but prioritize their cultural unity and Turkic identity.

    It’s certain that the OTS has great potential. With its strategically important location, population, economy, minerals, and everything necessary to grow into a superpower, they can impact world dynamics akin to the impact of the EU on global dynamics. United, they will gain more bargaining power and can effectively utilize their resources, particularly minerals currently in high global demand. The geographical area, intersecting important trade routes across all directions, west to east and north to south, will promote their growth. So, if they remain united, as Aliyev said, it’s a century for the Turkic world. 

  • How Are Trade Barrier Reforms Progressing In Central Asian States?

    How Are Trade Barrier Reforms Progressing In Central Asian States?

    The economy of the United States is its greatest asset. Instead of relying solely on its military, it utilizes the hegemony of the dollar and its economic might to forge partnerships with other countries. The United States’ financial contributions led to a West-leaning, communist-averse Europe after World War II. Similarly, it spurred the resurgence of East Asia by injecting capital and ensuring the market. The United States’ economic interests have played a significant role in mitigating full-scale conflicts in the Middle East. This strategy, centered on leveraging financial resources and markets to build alliances, is now expanding to encompass Central Asia. Central Asia, once hindered by the dominant influence of the Soviet Union and Russia, is now becoming more accessible to the United States. The US initiative in the region seeks to foster a market conducive to the prosperity of Central Asian states and to attract American investment, thereby strengthening ties with the United States. 

    Central Asian states have long been characterized by trade barriers, bureaucratic hurdles, and regulatory complexities, greatly impeding economic progress. However, steps are currently being taken to tackle these challenges, representing a significant advancement towards creating a unified regional market similar to the streamlined documentation and policy frameworks found in Europe. Promoting the establishment of such a unified Central Asian market and facilitating smooth trade and service flow are fundamental elements of a regional economic strategy championed by the United States, known as the B5+1 initiative. Amidst a flurry of diplomatic engagements in mid-April, Central Asian leaders are actively exploring the potential of the B5+1 initiative. Launched in March, the B5+1 initiative assigns the five Central Asian nations, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan, with the responsibility of spearheading efforts to promote regional free trade and enhance export opportunities.

    In recent times, geopolitical analysts have turned their attention to the growing interactions among Central Asian countries, spurred by the diminishing influence of Russia and the stagnating economic growth of  China . Notably, a multitude of discussions and agreements have unfolded in the region, often without the presence of Russia. A significant event occurred on April 18, when Uzbek President Shavkat Mirziyoyev and Tajik President Emomali Rahmon signed 28 interstate agreements spanning political, economic, and social realms. Noteworthy among these were two agreements aimed at bolstering trade between Uzbekistan and Tajikistan, with a focus on simplifying customs procedures at border checkpoints and safeguarding industrial property rights. Preceding Mirziyoyev’s visit, a joint investment forum in Dushanbe drew around 600 officials and business leaders from both nations. They expressed keen interest in collaborative ventures, particularly within the mining and renewable energy sectors, and sought to expand trade. Initiatives such as establishing a free trade zone at the Oybek-Fotekhobod border crossing and developing a logistics hub at Andarkhan were emphasized. Additionally, plans were unveiled to streamline permit requirements for freight-carrying trucks crossing the Tajik-Uzbek border. Despite bilateral trade reaching $505 million in 2023, officials aspire to elevate it to $2 billion in the near future. This ambition was echoed by Kazakhstan’s President Kassym-Jomart Tokayev during his agreements signing with Kyrgyz President Sadyr Japarov, underscoring the significance of facilitating cross-border movement and enhancing the exchange of manufactured goods. Subsequent to discussions with Japarov, Tokayev engaged in talks with Uzbekistan’s Mirziyoyev, likely focusing on regional trade dynamics. While details of these discussions were scarce, it was apparent that bilateral relations and regional cooperation were prioritized. However, challenges persist, notably between Tajikistan and Kyrgyzstan, where trade turnover declined significantly due to ongoing border disputes and unmarked border areas. Additionally, Turkmenistan poses a significant obstacle to efforts aimed at promoting connectivity, with issues such as a severe shortage of qualified personnel hindering international cooperation within contractual frameworks. Nonetheless, Ashgabat’s interest in expanding regional trade appears substantial, as evidenced by the sizable delegation it dispatched to the inaugural B5+1 conference in Almaty.

    Recent diplomatic initiatives seem to have drawn the Kremlin’s attention, as it expresses concern that increased trade facilitation in Central Asia could lead to the expansion of commercial networks that bypass Russia. The ongoing developments aimed at streamlining trade processes in Central Asia appear to unsettle Moscow.  Nevertheless, landlocked countries with tough terrain require substantial investments in infrastructure to connect with the global economy. They traditionally rely on Russia, and China made a lot of road and rail networks under the Belt and Road Initiative (BRI). It is unlikely that Russia, China, and Iran will cooperate with the trade union in this context. So the US could potentially influence countries such as Pakistan and the Southern Caucasus countries, which have aligned with European interests. These will lead to huge shifts in the entire asia geopolitical landscape. So the Impact of B5+1 will grow beyond Central Asia.

  • Central Asian States Embrace US-Facilitated Integration Plan: Redefining Regional Dynamics

    Central Asian States Embrace US-Facilitated Integration Plan: Redefining Regional Dynamics

    Once firmly ensconced within Russia’s sphere of influence, Central Asia is now slowly stepping out of its shadow. Despite possessing vast economic potential, abundant geographical resources, and significant opportunities for tourism, the region had been reluctant to liberate itself from the iron grip of the Soviet era. However, as Russia’s influence diminishes and Central Asian nations strive to assert their own identities, they are increasingly seeking collaboration with other global actors.

    China has made notable strides, participating in diverse agreements like the Belt and Road Initiative and embarking on infrastructure and mining ventures. India, an emerging economic force, similarly seeks to tap into Central Asia’s mineral resources to satisfy its expanding needs, resulting in numerous accords. Under Erdogan’s leadership, Turkey has rekindled its focus on the Turkic identity and is deepening its engagement in the region. Saudi Arabia expresses interest, while Iran sustains its presence.

    Despite these shifts, the United States, a major player in global politics, has not significantly intervened in the region, largely deferring to Russian authority. Central Asian leaders have also distanced themselves from the United States to maintain favor with Russian rulers. However, as Russia’s supremacy is challenged with the incidents such as the Ukraine conflict and increasing alignment of neighboring countries with the United States, both Central Asia and the U.S. see an opportunity for closer ties and market exploration in the region.

    The United States is initiating a strategic effort, akin to stringing  pearls, to unify all Central Asian nations into a cohesive network of collaboration. They initiated B5+1, a diplomatic platform for Central Asian countries (Kazakhstan, Kyrgyz Republic, Tajikistan, Turkmenistan, Uzbekistan) and the U.S.. Following its inaugural Forum, the group is placing emphasis on five priority industries and outlining specific actions necessary to expedite regional integration and economic growth in Central Asia. Attendees at the March 2024 Forum in Almaty, Kazakhstan, included business leaders, investors, experts, and policymakers from the region and various other nations. The role of the United States in this initiative is that of a facilitator, anticipating that Central Asian states will lead efforts to integrate the region’s economy through robust public-private partnerships. Furthermore, the involvement of the private sector is deemed essential in shaping the process.

    the United States  laying a sturdy groundwork for potential success. Central Asian governments are responding positively to the plan. The objective of the primary forum was to foster discussions aimed at dismantling trade barriers hindering outside investment and fostering a regional market. This objective has been successfully realized. Interest from regional governments in developing the B5+1 initiative appears robust, with Kyrgyzstan and Uzbekistan reportedly vying to host the forum next year.

    The Kazakh government, the biggest player in the region, has shown immense support for the initiative. During the closing remarks of the initial B5+1 forum, held in Almaty from March 13-15, Kazakh First Deputy Minister of National Economy Timur Zhaksylykov expressed the government’s willingness to collaborate with the private sector in enhancing trade prospects, particularly in sectors like agribusiness and e-commerce. They also expressed a commitment to working towards the development of a unified regional market.

    During the Almaty forum, private sector representatives issued a statement expressing their commitment to coordinating efforts aimed at enhancing trade, transit, and investment facilitation. Additionally, they pledged to work towards harmonizing regulations in key industries beyond the dominant energy and extractive sectors, which have traditionally attracted the majority of Western investment in the region. The B5+1 initiative has identified five economic sectors for prioritized development: trade and logistics, agribusiness, e-commerce, tourism, and renewable energy. Areas where the United States can pump their interest and money.

    They also addressed the immediate need to establish a regional chamber of commerce to advocate for economic integration. One common priority identified across all sectors is the development of transnational mechanisms to harmonize regulatory and customs frameworks. One suggestion is the development of a standardized digital CMR, allowing for the smooth movement of truck-borne goods across borders through electronic contractual documentation. Currently, many customs procedures lack digitalization. Another recommendation advocates for the removal of visa requirements for truck drivers engaged in import-export activities. Additionally, to boost tourism, the B5+1 proposes the adoption of a Schengen-like tourism visa, enabling tourists to freely explore the five regional states.

    Despite the promising start of the B5+1 initiative, numerous challenges persist. In a region where authoritarian governance often shapes policy, the extent to which officials are willing to relinquish control to private sector entities remains uncertain. Moreover, the private sector’s capacity in areas like policy development and advocacy is largely untested. Previous attempts to enhance regional economic integration have faltered, and the promotion of a unified Central Asian market conflicts with the interests of Russia and China.

    However, if the B5+1 maintains its momentum, the envisioned outcome is a well-regulated and efficient single market that attracts significant Western investment. Under the B5+1 vision, integration can safeguard the individual sovereignty of each Central Asian state, bolstering their resilience against political and economic pressures from neighboring and external actors.

    Supporters of the US-led B5+1 process acknowledge Washington’s intention to enhance its influence in Central Asia but emphasize a significant contrast between this approach and those of Russia and China. The strategy of the B5+1 aims to organically expand American influence in the region, employing methods that fundamentally differ from those employed by Moscow and Beijing.

    Cooperation with the United States economy holds paramount importance for any nation’s success. From bolstering foreign reserves to attracting significant business investments, reliance on the dollar and partnerships with the United States permeate various aspects of economic development. And here, collaboration talks extend beyond financial realms, encompassing areas like travel visas, currency agreements, legal frameworks, and trade tariffs, all contributing to creating a highly competitive environment for investments in partner countries. Indeed, intensified cooperation between the United States and their allies in Asia like Saudi Arabia holds the potential for increased investment and developmental strides in the region.

    Moreover, as companies engage in collaborative ventures, the United States stands to gain allies in the region, countering the dominance sought by Russia and China over resource-rich nations. This collaborative approach not only mitigates the risk of monopolistic tendencies but also accelerates the realization of development aspirations in Central Asia. While Russia may attempt to maintain control through power dynamics, the path forward may not be without challenges. Nonetheless, for Central Asian nations and the United States alike, this presents an opportunity to foster economic growth and wield greater political influence in the Asian landscape.