Bilateral relations between China, Kazakhstan get new push

Extensive railway network

Kazakhstan has an extensive railway network connecting its major cities.

It is a resource-rich, upper-middle-income economy, whose mainstay is energy exports. According to Kazakh customs, the halving of world oil prices and lower export demand since 2015 have resulted in a sharp slowdown with an average annual GDP growth rate of 2.2 percent between 2014 and 2017.

Just when the economy had started looking up, the COVID-19 pandemic and slump in commodity prices dented its growth outlook.

Given the current situation, Kazakhstan's engagement in the BRI assumes significance. Although a bulk of global transportation happens via sea, railways are the second most important mode of international transportation. Investments in rail and road increase the competitiveness of both cross-border and domestic transportation in Central Asia.

For instance, two of the six BRI corridors pass through the region, connecting China with Europe, Iran and West Asia. The northern route traverses through Russia along the trans-Siberian route and the International North-South Transport Corridor, while the southern route connects China and Western Europe via Kazakhstan, Russia, Belarus, Poland and Germany.

These corridors are not just for facilitating Chinese exports. For most Central Asian nations, China offers the closest port, making Kazakhstan a potential hub for accessing Central Asia.

Meanwhile, the China-Kazakhstan (Lianyungang) logistics cooperation base, the dry port in the Special Economic Zone Horgos-Eastern Gate and the Western China-Western Europe international transport corridor have ensured the smooth movement of freight across the Eurasian continent and also enabled Kazakh products to reach the seaports.

Guo Changchao, CEO of WinExpress, a Chinese logistics company, said he could feel the mutual understanding and respect between the people of China and Central Asia, along with the wide acceptance of China's plans around the world.