11 Kazakh-Chinese projects to be implemented by the end of 2019
Following the first six months of 2018, 31.2% of the investment flows of the sector have been formed by Chinese investors.
In 2018-2019, 11 Kazakh-Chinese projects for US $4.4 billion will be implemented, an official website of the Finprom.kz monitoring agency informs, BNews.kz reports.
As of the end of the first six months of 2018, the cumulative amount of Chinese investment has amounted to US $15.6 billion, against US $14.8 billion in the previous year. During the last three years, the linear growth of up to 6.6% in investment flows from China has been observed.
There are 5 most attractive sectors for Chinese investors, they are transport and storage (US $4.9 billion), mining (US 2.6 billion), finance and insurance (US $ 2.6 billion), construction (US $2.1 billion), and manufacturing (US $2.1 billion), that has replaced the retail and wholesale trade (US $833.1 million). The top-5 sectors occupy 88.9% (US $ 14 billion) of all Chinese investment (in 2014 - 68.4%).
In 2018, direct investment for the first time has turned into the main tool of Chinese investors, with the amount of US $9.5 billion by the end of the first six months (60.3% of the total amount of investment). Portfolio investment and derivative financial instruments still take the smallest part - US $2.1 million (less than 1%). However, the amount of investment by the means of these instruments has increased by 69.8% within the year.
The total number of Kazakh-Chinese investment projects is 51, the cumulative amount of investment totals at over US $27 billion. In 2018-2019, an additional 11 projects for US $4.4 billion will be implemented, creating around 20 thousand new permanent working places.
The crucial projects is the Belt and Road projects, within which a number of large infrastructure projects have already been brought into use within five years, including Lianyungang Port; Khorgos-Eastern Gates Dry Port, on the border with China; Aktau Port in the Caspian Sea; the Kazakhstan-Turkmenistan-Iran rail corridor with a total length of around 900 km linking the Central Asian states with the Persian Gulf and Bandar Abbas Port in south of Iran; Western Europe - Western China International Transit Corridor passing Kazakhstan. Over 80 zones of trade and economic cooperation have been established, as well as over 200 thousand workplaces have been created with the participation of Chinese companies.
Globalization gains momentum with the integration of the financial sector. Astana and its financial center consolidate the investment activity of world investors. China is a good example of the active participation in developing the capital market of Kazakhstan. 5 memorandums and agreements have been signed in the Financial Hub in 2018 (total 13 for 2016-2018), the main objective of which is to develop transborder businesses to ensure high-quality services and to develop new financial services.
The rankings of the ease of doing business index compiled by the World Bank are a crucial indicator that assesses countries' business orientation. Following the 2019 rankings, Kazakhstan has climbed 8 positions up, and ranks 28th (in 2018 - 36th), and is the best country in the region in business doing. The closest EEU neighbors are found between the 3rd to 70th positions. In its turn, China ranks 4th (in 2018 - 5th).
The foreign trade turnover of Kazakhstan and China has reached US $8.2 billion for 9 months of 2018 (a year ago - US $7.4 billion). China is one of the key partners of Kazakhstan: the trade turnover share with China is 12.1% of the total amount (US $68.2 billion).
Kazakhstan's exports and imports of commodities and services to China in parities: exports - US $4.2 billion (+6.6%), imports - US $4 billion (+17.2%).
In 2017, China ranked second in the amount of trade turnover with Kazakhstan - US $10.5 billion.