China Deepens Its Economic Grip on Central Asia

China Deepens Its Economic Grip on Central Asia

China Deepens Its Economic Grip on Central Asia

China’s trade with Central Asian states grew significantly during the first 10 months of 2025, compared with the same period in 2024, according to Chinese government statistics.

Trade turnover with Kyrgyzstan saw the largest spike, rising from $17.4 billion to $23.6 billion. What also makes Kyrgyzstan noteworthy is that, according to Kyrgyz government statistics, the nation’s GDP in the first 10 months of 2025 amounted to about $16.3 billion, meaning that trade with China alone was larger than all the goods and services produced in Kyrgyzstan so far this year. The wide discrepancy in data can be explained by large-scale smuggling and sanctions-busting operations, where billions of dollars’ worth of goods cross the border from China to Kyrgyzstan, without being registered in Kyrgyz official statistics.

Meanwhile, the numbers for Kazakhstan grew from $36.5 billion to $39.8 billion; Uzbekistan from $11.1 billion to $12.9 billion; and Tajikistan from $3.3 billion to $3.5 billion, according to Chinese official data.

Turkmenistan is a regional outlier in terms of overall trade turnover: its trade with China shrank from $8.9 billion to $8.3 billion during the first 10 months of 2025, compared with the previous year. But the good news for Turkmenistan is that it remains the only Central Asian state with a positive balance of trade with the PRC: in 2025, China imported over $8.1 billion worth of goods from Turkmenistan, while exports were limited to $784 million. The PRC’s trade with other Central Asian countries is lopsided in China’s favor.

Meanwhile, China, Iran, Kazakhstan, Uzbekistan, Turkmenistan, and Turkey agreed to coordinate measures to streamline rail transit along the southern branch of the Middle Corridor by “applying unified and competitive tariffs, shortening travel times for container trains, cutting auxiliary and customs-related costs, and upgrading rail infrastructure across the corridor,” the Tehran Times reported. This agreement, if fully implemented, could redirect a large portion of transit volume through Iran.

Railway officials convened the inaugural meeting of the Eurasian Transport Route Association in Baku in late November, the Trend news agency reported.   Representatives from Azerbaijan, Kyrgyzstan, Tajikistan and Uzbekistan participated. The Eurasian Transport Route is a southern branch of the Middle Corridor, connecting China, Kyrgyzstan, Tajikistan, Uzbekistan, Turkmenistan, Azerbaijan, Georgia, and Turkey. Shipments began in November from the Chinese city of Kashgar to Azerbaijan via the southern branch.

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