Other BriefingsChina-Kazakhstan: Bilateral Trade and Investment Profile
- China is one of Kazakhstan’s most important trade and investment partners. In 1992, the total trade volume between China and Kazakhstan was US$368 million; by 2023, this figure had reached US$41.02 billion.
- China and Kazakhstan have engaged in deep cooperation to align the Belt and Road Initiative with Kazakhstan’s “Bright Road” new economic policy, enhancing the quality and upgrading their economic and trade cooperation.
- Looking ahead, the stable and strong diplomatic ties between the two countries, along with Kazakhstan’s support for China’s BRI, are expected to elevate their economic and investment cooperation to the next level.
China and Kazakhstan established diplomatic relations in 1992 and have maintained a permanent comprehensive strategic partnership since 2022. As a close neighbor of China and a key participant in China’s Belt and Road Initiative (BRI), Kazakhstan is set to become an increasingly important cooperation partner for China in the long term.
In 2022, the two nations officially embarked on the “Golden Thirty Years” of bilateral relations. China has become one of Kazakhstan’s largest trading partners, with bilateral trade accounting for around one-third of Kazakhstan’s total trade volume. In recent years, Kazakhstan has begun to import a greater number of machinery, vehicles, and apparel from China, while minerals and ores continue to be the most significant exports from Kazakhstan to China.
Chinese investment in Kazakhstan has seen significant growth in recent years, reaching US$1.81 billion in 2023—an increase of 16.4 percent from 2022. Joint development projects in renewable energy, such as natural gas pipelines, solar, and wind power, have also been expanding.
The strong diplomatic ties between the two countries underpin this growing economic collaboration. Frequent high-level exchanges, alongside shared development strategies and mutual interests, continue to elevate bilateral relations to new heights.
China and Kazakhstan have several promising areas for cooperation in the economic and trade sectors. These areas are based on the respective strengths and resources of both countries and align with current global economic trends:
- Energy cooperation: Both countries have achieved significant results in the oil and natural gas sectors. With the global focus on clean energy, they can further explore cooperation in renewable energy, such as wind and solar power. This collaboration will not only help meet the growing energy demands of both nations but also promote sustainable global energy development.
- Infrastructure construction: China has extensive experience and technical expertise in infrastructure, while Kazakhstan has vast land and rich natural resources. Strengthening cooperation in infrastructure projects, such as highways, railways, and ports, can enhance logistics and trade between the two countries, fostering mutual economic growth.
- Agricultural cooperation: China has advanced agricultural technology, and Kazakhstan has abundant agricultural resources. The two countries can deepen cooperation in agricultural technology and product processing to improve production efficiency, diversify agricultural products, and promote the upgrading and development of the agricultural industry.
- Manufacturing and service industry cooperation: As China’s economy transitions and upgrades, its manufacturing sector is moving towards high-end and intelligent development, while the service industry is becoming a key driver of economic growth. Kazakhstan can learn from China’s successful experiences and strengthen cooperation in these sectors to diversify its own economy.
- Fintech cooperation: With the rapid development of financial technology, China and Kazakhstan can collaborate in the fintech sector to jointly develop and promote advanced fintech products and services, enhancing the competitiveness and innovation capacity of their financial industries.
China- Kazakhstan trade dynamics
According to Chinese customs statistics, in 2022, the bilateral trade volume between China and Kazakhstan reached a record US$31.174 billion, an increase of 23.6 percent compared to the previous year. Of this, China’s exports to Kazakhstan amounted to US$16.355 billion, a year-on-year increase of 17.4 percent, while imports from Kazakhstan totaled US$14.819 billion, a year-on-year increase of 31.24 percent. China’s trade surplus with Kazakhstan was US$1.536 billion, a decrease of 41.81 percent year-on-year. In 2023, the bilateral trade volume reached US$41.02 billion, a year-on-year increase of 32.2 percent. The trend continued in the first half of 2024, with trade turnover growing by nearly 20 percent.
Kazakhstan exports to China
In 2023, Kazakhstan exported a total of US$16.8 billion to China, with minerals and ore products being the main exported goods, which have been relatively stable in recent years. As the joint development projects between China and Kazakhstan continue to expand, it is reasonable to anticipate that the export sector’s raw material exports will also increase in the near future.
Top products that are imported by China from Kazakhstan in 2023:
|
Kazakhstan’s Top Exports to China, 2023 |
|
| Category | Value (US$) |
| Mineral fuels, mineral oils, and minerals | 5.72 billion |
| Ores, slag, and ash | 4.06 billion |
| Copper and articles thereof | 2.16 billion |
| Inorganic chemicals, organic or inorganic compounds of precious metals | 1.39 billion |
| Iron and steel | 1.09 billion |
| Cereals | 0.34 billion |
Source: International Trade Center
China exports to Kazakhstan
China is currently Kazakhstan’s largest trade partner, with a bilateral trade value of US$31.5 billion. In the post-pandemic era, Kazakhstan’s import value has experienced a consistent increase each year. In 2023, the total import value increased by 20 percent compared to the previous period. The total export values from China to Kazakhstan are US$16.25 billion in 2022, a figure that has increased annually since 2019 from US$11.7 billion.
The largest contributor to the increased import value comes from light industry, vehicles, petrochemicals, and machinery products. At the 2023 Central Asia-China summit, Kazakhstan President Tokayev stated that these sectors are anticipated to experience continuous growth in the near future, and the total bilateral trade target with China is US$40 billion.
Top products that are imported by Kazakhstan from China in 2023:
|
China’s Top Exports to Kazakhstan, 2023 |
|
| Category | Value (US$) |
| Nuclear reactors, boilers, machinery, and mechanical applications | 3.38 billion |
| Electrical machinery and equipment, sound recorders, and reproducers. | 2.58 billion |
| Vehicles other than railway or tramway rolling stock | 2.18 billion |
| Articles of apparel and clothing accessories, not knitted or crocheted | 1.22 billion |
| Articles of apparel and clothing accessories, knitted or crocheted | 1.17 billion |
| Footwear, gaiters, and parts of such articles | 0.73 billion |
Source: International Trade Center
China-Kazakhstan investment
Kazakhstan is the most advanced economy in Central Asia, with a national GDP exceeding US$260 billion in 2023, a 5.1 percent increase from the previous year. The country’s economic prosperity makes it one of the most favorable destinations for foreign direct investment (FDI), with inward FDI reaching US$157.2 billion in 2023.
China invests in Kazakhstan
China’s investment in Kazakhstan has surged in recent years, reflecting the strategic importance of the bilateral relationship and China’s broader ambitions in Central Asia. While historically the majority of FDI into Kazakhstan has been directed toward its oil, gas, and mineral sectors, recent trends show diversification.
|
China FDI in Kazakhstan, 2018-2022 |
|||||
| 2018 | 2019 | 2020 | 2021 | 2022 | |
| FDI newly added (US$ million) | 118.3 | 786.5 | -115.3 | 822.2 | 356.0 |
| FDI in stock (US$ million) | 7,341.1 | 7,254.1 | 5,869.4 | 7,487.4 | 6,978.7 |
China began investing in Kazakhstan in the early 2000s, initially targeting hydrocarbons. However, most of Chinese outward FDI into Kazakhstan is now channeled into sectors outside of oil and gas, such as chemicals and renewables. As of 2023, Chinese investments reached US$1.81 billion, up 16.4 percent from the previous year, with cumulative investments totaling US$25.3 billion from 2005 to 2023. This investment growth, heavily focused on energy and infrastructure projects, positions Kazakhstan as a critical partner in China’s BRI. Between 2022 and 2024, total Chinese investment in Kazakhstan is projected to reach US$2.54 billion, with US$2.3 billion allocated to the chemical sector and the remainder invested in energy.
A flagship initiative under this cooperation is the China-Central Asia natural gas pipeline, a 1,300-kilometer venture that has transported over 480 billion cubic meters of gas to China since its launch in 2007. The pipeline is vital for securing China’s energy supply while simultaneously enhancing Kazakhstan’s ability to diversify its gas transit routes.
The BRI has also brought significant improvements to Kazakhstan’s trade facilitation, logistics, and border efficiency. Infrastructure upgrades have bolstered non-oil exports and FDI, particularly in agriculture and processed goods. Additionally, Chinese companies are playing a leading role in Kazakhstan’s renewable energy initiatives, such as Universal Energy’s 100-megawatt solar plant, a key part of the country’s push toward a greener economy by 2060.
By broadening the scope of its investments in Kazakhstan beyond traditional energy sectors, China is cementing its role as a critical partner in the region’s economic development and transition toward sustainability.
China-Kazakhstan bilateral agreements
China and Kazakhstan have signed numerous economic and trade agreements over the years, reflecting their deepening cooperation. Key agreements include:
- Economic and Trade Cooperation Agreement (December 22, 1991)
- Transit Railway Transport Agreement (August 10, 1992)
- Automobile Transport Agreement (September 26, 1992)
- Judicial Assistance Treaty (January 14, 1993)
- Air Transport Agreement (October 18, 1993)
- Science and Technology Cooperation Agreement (December 30, 1994)
- Agreement on the Use of Lianyungang Port (September 11, 1995)
- Interbank Cooperation Agreement (July 5, 1996)
- Commodity Inspection Agreement (July 5, 1996)
- Oil Sector Cooperation Agreement (September 24, 1997)
- Customs Cooperation and Mutual Assistance Agreement (September 26, 1997)
- Anti-Unfair Competition and Anti-Monopoly Agreement (November 23, 1999)
- Agreement on Avoidance of Double Taxation and Prevention of Tax Evasion (September 12, 2001)
- Bilateral Currency Swap Agreement (June 13, 2011)
- Bilateral Investment Protection Agreement
- Framework Agreement on Strengthening Production Capacity and Investment Cooperation (August 31, 2015)
- Cooperation Plan on Aligning the Silk Road Economic Belt with Kazakhstan’s “Bright Road” New Economic Policy (September 2, 2016)
- Memorandum of Understanding on Strengthening Digital Economy Cooperation between the National Development and Reform Commission of China and the Ministry of Information and Communications of Kazakhstan (November 22, 2018)
- Development Plan for Economic and Trade Cooperation between the Governments of China and Kazakhstan (up to 2026) (September 14, 2022)
- Memorandum of Understanding on Economic and Trade Research between the Ministry of Commerce of China and the Ministry of Trade and Integration of Kazakhstan (May 2023)
Look ahead
Kazakhstan is an emerging economic power in Central Asia, and the cooperation between China and Kazakhstan still has a long way to go. Currently, Kazakhstan’s main exports to China are minerals and agricultural products, while it imports primarily intermediate goods and machinery. However, as Kazakhstan transitions to an industrialized economy, these trade patterns may evolve. Chinese investment in Kazakhstan remains strong, particularly in the chemical and renewable energy sectors. This is largely due to the BRI strategy and the geographic proximity of the two nations.
Looking ahead, the stable and strong diplomatic ties between the two countries, along with Kazakhstan’s support for China’s BRI, are expected to elevate their economic and investment cooperation to the next level.
About Us
China Briefing is one of five regional Asia Briefing publications, supported by Dezan Shira & Associates. For a complimentary subscription to China Briefing’s content products, please click here.
Dezan Shira & Associates assists foreign investors into China and has done so since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Haikou, Zhongshan, Shenzhen, and Hong Kong. We also have offices in Vietnam, Indonesia, Singapore, United States, Germany, Italy, India, and Dubai (UAE) and partner firms assisting foreign investors in The Philippines, Malaysia, Thailand, Bangladesh, and Australia. For assistance in China, please contact the firm at china@dezshira.com or visit our website at www.dezshira.com.
- Previous Article China-Greece Economic Relations: Trade and Investment Highlights
- Next Article
