China is actively involved in developing the transport networks of neighboring Kyrgyzstan and Tajikistan

In the fall of 2024, Kyrgyzstan and China opened a new border crossing at Bedel, which required the construction of a road across the border between Kyrgyzstan’s Issyk-Kul region and China’s Xinjiang Uyghur Autonomous Region. The Chairman of the Cabinet of Ministers of Kyrgyzstan emphasized that this checkpoint and the construction of the adjacent Barskoon-Ukhturpan-Aksu road will not only become a gateway for further economic cooperation, but also a bridge of friendship and mutual respect between the two countries

China plays an important role in developing the growing transport networks of Kyrgyzstan and Tajikistan, and the unification of their respective road systems remains a strategic goal for both countries. Achieving this goal, however, would be impossible without external assistance, as both countries are among the fifty poorest countries in the world. China’s financial might and engineering capabilities create opportunities to make this a reality. Dushanbe and Bishkek see regional implementation of China’s global infrastructure program, the Belt and Road Initiative, as an opportunity to overcome bottlenecks in their transport sectors. Beijing, in turn, sees road assistance as a viable way to increase its exports to the Central Asian market.

While both sides are living up to their expectations, Beijing is also benefiting. China’s involvement in the transport sector in Kyrgyzstan and Tajikistan is beneficial to Chinese companies and provides Beijing with economic leverage while also providing soft power benefits. According to Tajikistan’s transport minister, the country has built 2,407 kilometers of roads since independence in 1991. During the same period, Kyrgyzstan built 2,680 kilometers of roads. China has played a significant role in this, acting as the main contractor and financier, providing loans and grants. The Tajik transport ministry says China is the largest investor in the country’s transport infrastructure, accounting for 26 percent of the total cost, or $570.2 million. Of this amount, $37 million was provided in the form of grants, and the remaining $533.2 million in loans. The Asian Development Bank provided 35 percent of the financing for Tajikistan’s roads, totaling $766.6 million. The largest investor in Kyrgyzstan’s road infrastructure is the Export-Import Bank of China. According to Kyrgyzstan’s Ministry of Transport, the country has invested about $1.35 billion in road projects, including $390 million financed by Cheksim and $267 million by the Asian Development Bank.

Kyrgyzstan imports Chinese products mainly by road. In the first half of 2024, trade turnover between Kyrgyzstan and China increased by 40.77 percent and amounted to $3.17 billion. Most of this amount is Chinese exports. Of the total, $3.12 billion is exports from China, and only $48 million is Kyrgyz exports. Most of the latter are raw materials such as metal ores and oil. By the end of 2024, this figure will be almost the same, and the export of Kyrgyz products to China will amount to only about 1.5 percent of the total trade turnover between the two countries. In Tajikistan, improved roads have led to an increase in trade, mainly exports from China. In 2023, trade turnover between the countries amounted to $1.5 billion, which is 24.2 percent more than in 2022. Of this amount, $1.2 billion came from Chinese exports, while Tajikistan’s exports amounted to only $313.8 million. Again, Tajikistan’s exports to China consisted mainly of minerals and other commodities. Notably, while China’s exports to Tajikistan increased by 42.8% between 2022 and 2024, Tajikistan’s exports to China decreased by 24.2% over the same period.

Road reconstruction in Tajikistan and Kyrgyzstan also allows Chinese companies to earn money and employ Chinese citizens. Unlike financing from international organizations such as the Asian Development Bank, financing from China is usually provided on the condition that the project is implemented by a Chinese company. This usually applies equally to all land transport projects in the two countries financed by China, whether roads or railways. Chinese subcontractors benefit from financing from Chinese banks and import their own equipment and construction materials, which are often exempt from taxes and customs duties. Such conditions were, for example, set by Beijing when providing a grant for the construction of the Kalai-Khumb-Vanj road in Tajikistan. Information on contracts financed by Chinese organizations is rarely provided, but one example is the reconstruction of the Dushanbe-Dangara and Dushanbe-Chanak roads. The terms of this loan were 20 years at 2% per annum with a grace period of five years. In both cases, the China Road and Bridge Corporation was selected as the general contractor.

China’s leading role in road construction in Kyrgyzstan and Tajikistan is explained not only by the fact that this country finances such projects, but also by the fact that Chinese companies are increasingly winning many tenders that are financed from the state budgets of Dushanbe and Bishkek or other international financial institutions. According to the Asian Development Bank, from 2017 to 2021, Chinese companies won tenders worth about $154.3 million in Tajikistan and about $106.8 million in Kyrgyzstan.

The widespread involvement of Chinese companies in road construction in Tajikistan and Kyrgyzstan also brings dividends to Beijing in terms of promoting “soft power.” In Kyrgyzstan, especially in the capital Bishkek, China provides grants for the construction of interchanges to alleviate traffic congestion. After the work is completed, Chinese companies often leave a reminder for citizens of Beijing’s role by placing prominent banners on the roads promoting China’s participation in the projects. For example, residents living along a road built by the Chinese in Tajikistan’s Gorno-Badakhshan region say that all roads in Tajikistan are built at China’s expense, almost free of charge. Of course, for Tajikistan and Kyrgyzstan, China is the main trading partner, an important investor, and the main hope for breaking isolation and, in the long run, getting to the sea. Both countries receive new roads as a result, but China also benefits greatly from cooperation with these Central Asian states.

Bulatov, International observer

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