The Center for Economic Research and Reform (CERR) has prepared an infographic that presents an analysis of the development of Uzbekistan’s foreign trade relations with China over 6 years (2017-2022) and the investment potential of the two countries.
Uzbekistan’s trade with China
China is one of Uzbekistan’s leading trading partners and a leading investor in the Uzbek economy.
The analysis of the CERR shows that in recent years, trade, economic and investment cooperation between Uzbekistan and China has been developing dynamically and covers new areas of cooperation.
In the period 2017-2022, the total volume of bilateral trade increased 1.9 times from $4.7 billion (in 2017) to $8.9 billion (in 2022, an increase of 19.9% compared to 2021).
Uzbekistan’s export to China increased almost 1.3 times from $2.0 billion (in 2017) to $2.5 billion (in 2022), import increased 2.4 times from $2.7 billion in 2017 to $6.4 billion in 2022.
In 2022, Uzbekistan’s main export to China were fruits and vegetables (5%), natural gas (35%), cotton yarn and silk (11%), copper and products made from it (14%), plastics and products made from them (2%).
The main import from China in 2022 were machinery and equipment (46%), vehicles (10%), plastics, rubber and products made from them (10%), iron, metal and products made from it (6%).
Investment cooperation
China’s direct investments, along with the capital of other leading partners of Uzbekistan, are actively present in a number of sectors of the Uzbek economy.
Since 2017, China’s investments in the economy of Uzbekistan have increased 5-fold and reached $12 billion.
By the end of 2022, China’s investments amounted to $1.67 billion (FDI – $739 million), in January-September 2023, the total volume of Chinese investments in Uzbekistan amounted to $2.22 billion (FDI – $1.01 billion).
The areas of investment cooperation are: energy, including renewable energy, oil and gas, chemical, light, automotive, electrical engineering, construction materials production, telecommunications, healthcare, pharmaceuticals, the agricultural sector and others.
At present, there are 2,125 enterprises with Chinese capital in Uzbekistan, which is 2.5 times more than 6 years ago. This represents 15% of the total number of all companies with foreign capital present in Uzbekistan. In just 11 months of last year, 605 new enterprises were created with the participation of Chinese capital.
Such large Chinese companies as Huawei, ZTE, Wenzhou Jinsheng Trading, JV Peng Sheng, Sinotruk, Heng Bang Textile Central Asia and many others carry out their activities in the Uzbek market.
A JV for the assembly of hybrid cars BYD has recently been established. The Pengsheng Industrial Park is functioning. The Uzbek-Chinese medical technology park for the synthesis of medicinal substances is under construction.
Uzbekistan’s trade with China in 2023
At the invitation of President of the People’s Republic of China Xi Jinping, President of the Republic of Uzbekistan Shavkat Mirziyoyev is paying a state visit to this country on January 23-25 this year.
The Center for Economic Research and Reforms (CERR) has prepared an infographics that presents the foreign trade relations between Uzbekistan and China, the volume of import and export by product categories for 2023.
Uzbekistan’s trade with China is subject to the “most favored nation” regime in accordance with a bilateral agreement.
China is one of Uzbekistan’s leading trading partners and a leading investor in the Uzbek economy.
The analysis of the Center for Economic Research and Reforms shows that in recent years, trade, economic and investment cooperation between Uzbekistan and China has been developing dynamically and covers new areas of cooperation.
In 2023, Uzbekistan’s trade turnover with China increased by 51.5% and amounted to $13.7 billion, while export amounted to $2.5 billion, and import increased by 75.2% to $11.3 billion. Machinery and equipment, industrial goods and chemicals formed the basis of import from China in 2023.
It should be noted that by the end of 2023, China’s share in the total foreign trade turnover of Uzbekistan amounted to 21.9%, total export – 10.1%, total import – 29.5%.
During the negotiations on October 17 last year, on the occasion of the 10th anniversary of the Belt and Road Initiative, the mutual agreement of the leaders of our countries was expressed that there is every reason to bring trade turnover to $20 billion in the next 5 years.
With the participation of Chinese companies and financial institutions, a number of large investment projects are being implemented in the field of high technologies, alternative energy, chemistry, mechanical engineering, metallurgy, electrical engineering, infrastructure modernization and other areas.