This year, China has surpassed Russia and become the largest trading partner of the five Central Asian countries. Among them, the bilateral trade volume between Kazakhstan and China exceeded the bilateral trade volume between Kazakhstan and Russia this year.
According to data from the National Bureau of Statistics of Kazakhstan, in the first nine months of 2023, China accounted for 21.3% of Kazakhstan’s total foreign trade (valued at US$21.7 billion). Russia's trade share reached 18.6% ($18.9 billion).
Raw materials and natural resources account for the majority of Kazakhstan’s exports to China, while China’s exports to Kazakhstan mainly include manufactured goods such as household items, clothing and automobiles.
China’s bilateral trade data differs from Kazakhstan’s data. Zhang Xiao, Chinese Ambassador to Kazakhstan, said that in the first 10 months of 2023, bilateral trade volume between China and Kazakhstan reached US$32.7 billion, a year-on-year increase of 28.5%. According to Kazakhstani media reports, the figure was US$24.3 billion during the same period.
Growing bilateral trade has also brought challenges to the border between the two countries. There has been recent news of delays at some land border crossings between Kazakhstan and China.
For example, Kazakhstan's National Chamber of Entrepreneurs (Atameken) said that the waiting time for trucks and cars trying to pass through the Nur Zholy highway port (corresponding to China's Horgos port) may exceed 11 days. Citing complaints from drivers, the chamber said trucks carrying goods were frequently inspected repeatedly by customs officials "without any explanation." Officials recently started operating the Nur Zholy checkpoint around the clock to address border congestion.
Construction of Buktu-Ayagoz railway begins
On December 22, Kazakhstan started the construction of the Bakhty-Ayagoz railway. Prime Minister Smailov announced the official start of the construction project through a video.
The industry predicts that after the completion of the 272-kilometer new railway in 2027, the railway transshipment volume between China and Kazakhstan will increase from the current 28 million tons to 48 million tons.
The green line in the picture is the newly constructed Bakhty-Ayagoz railway (Source: The Astana Times)
Bakhty is adjacent to the Chinese border city of Tacheng. The completion of this railway will greatly assist the development and operation of the third railway crossing port between China and Kazakhstan.
Kanat Almagambetov, deputy chairman of Kazakhstan's state railway company KTZ, expects the construction of the new railway line to boost Kazakhstan's exports and the volume of goods transiting between Russia and China.
"Goods from Abay, Pavlodar, East Kazakhstan and other regions will be transported through this branch line. The construction of the double-track line is to ensure that it has sufficient transportation capacity immediately. In general "This will increase the inflow of transit goods and promote development in areas along the route," he said.
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