Open Access Library Journal

2024, Volume 11, e11627

ISSN Online: 2333-9721
ISSN Print: 2333-9705

Economy and Belt and Road Initiative:

Kazakhstan and China

Jean A. Berlie1, Manuel Benard2

1
Faculty of Liberal Arts and Social Sciences, Education University of Hong Kong, Hong Kong, China
2
Asian Infrastructure Investment Bank, Beijing, China

How to cite this paper: Berlie, J.A. and Abstract

Benard, M. (2024) Economy and Belt and
Road Initiative: Kazakhstan and China. Open The Middle Corridor is a part of China Belt and Road Initiative. With the op-
Access Library Journal, 11: e11627. erationalization and potential expansion of the MC, trade volumes between
https://doi.org/10.4236/oalib.1111627
Kazakhstan and China are still very important. The MC provides an alternative
Received: April 28, 2024
route for trade between China and Europe, bypassing traditional routes
Accepted: October 12, 2024 through Russia. China’s geo-economic role has been growing steadily over the
Published: October 15, 2024 past three decades. The latest development when the presidents of Kazakhstan,
Uzbekistan, Kyrgyzstan, Turkmenistan and Tajikistan, as well as Chinese Pres-
Copyright © 2024 by author(s) and Open
Access Library Inc.
ident Xi Jinping, signed numerous agreements on bilateral cooperation was the
This work is licensed under the Creative first face-to-face forum in Xian, China-Central Asia on 18 and 19 May 2023.
Commons Attribution International Kazakhstan’s reliance on trade routes through Russia may decrease as the MC
License (CC BY 4.0).
offers a more diversified and potentially more reliable option. This diversifica-
http://creativecommons.org/licenses/by/4.0/
tion could lead to a shift in Kazakhstan’s trade patterns, with a greater propor-
Open Access
tion of goods being transported through the MC.

Subject Areas
Sociology, Economics

Keywords
China, Globalization, Kazakhstan, Silk Road

1. Introductive History and Generalities

Genghis Khan (1162-1227) and Kubilai Khan Yuan dynasty or Mongol dynasty
(1206-1368) were established in China by Genghis Khan, who occupied northern
China in 1215, but not until 1279 did Kublai Khan take control of southern China.
The Mongols established their capital at Beijing (then called Dadu). They rebuilt
the Grand Canal and put the roads and postal stations in good order. Paper

DOI: 10.4236/oalib.1111627 Oct. 15, 2024 1 Open Access Library Journal

 J. A. Berlie, M. Benard

money, which had had limited circulation under the Song, came to be used
throughout the empire unified the two regions under the Mongol Empire and the
Qing dynasty ruled China between 1644 and 1911.
The historical and contemporary ties between Kazakhstan and China [1] form
the basis for understanding their current geopolitical and economic dynamics.
With a history dating back to the Mongol Empire, these ties have evolved signifi-
cantly, particularly following Kazakhstan’s independence in 1991.
Generally, this article explores the trade dynamics between Kazakhstan and
China, the impact of infrastructure development on trade efficiency, and the role
of international partnerships in enhancing economic resilience. Since 2013, Ka-
zakhstan accounts for more than 70 percent of Chinese investments in Central
Asia [2].
The Belt and Road Initiative [3], introduced by Chinese President Xi Jinping in
2013, further solidified these developments and the strategic importance of the
Middle Corridor, a key component of the BRI, in shaping Kazakhstan’s trade and
foreign relations.
The discussion delves into several critical areas:
1) Historical Context: Kazakhstan’s independence in 1991 marked the begin-
ning of a new era in Sino-Kazakh relations. The historical background, including
the Mongol Empire and the Yuan dynasty, sets the stage for understanding these
relations.
2) Political and Economic Frameworks: The governance structures of Kazakh-
stan, including the roles of the President, the Government, and the Parliament,
are outlined to provide a comprehensive view of the country’s political landscape.
3) Belt and Road Initiative (BRI): The BRI’s impact on Kazakhstan is analyzed,
emphasizing the significant Chinese investments in the region and the strategic
importance of Kazakhstan in the BRI framework.
4) Middle Corridor (MC): The MC’s role in diversifying Kazakhstan’s trade
routes and reducing dependency on Russia is important. Kazakhstan’s reliance on
trade routes through Russia may decrease as the MC offers a more diversified and
potentially more reliable option. The potential for increased trade volumes and
infrastructural development along the MC is highlighted.
5) Resource Wealth: Kazakhstan’s abundant natural resources, including oil,
gas, uranium, and various minerals, are crucial to its economic relationship with
China and other global partners.
6) Trade and Infrastructure: The paper examines the trade dynamics between
Kazakhstan and China, the impact of infrastructure developments on trade effi-
ciency, and the role of international partnerships in enhancing economic resili-
ence.
7) Shifts in Foreign Relations: Recent changes in Kazakhstan’s foreign policy,
particularly the growing economic ties with France, are explored. This shift is seen
as a strategic move to diversify its economic partners and reduce over-reliance on
any single country.

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 J. A. Berlie, M. Benard

Kazakhstan, the largest enclaved country, is the ninth largest territory in the
world. In the north and the west, the country shares border with Russia (7591 km),
with China in the east (1783 km), with Kyrgyzstan (1242 km), with Uzbekistan
(2351 km) and Turkmenistan (426 km) in the south. The total length of land bor-
der of Kazakhstan with other states amounts to 13,200 km.
Before 2022, Kazakhstan was China’s key partner in the Central Asian region
due to its location, size, and substantial energy resources. Since 2013, the relation-
ship between China and Kazakhstan has been structured by the Belt and Road (一
带一路). In 2023, confirmed by the Astana Times, Russia was the second eco-
nomic partner of the country.

2. Bordering Countries
In May 2013, President Tokayev was the first of the Central Asian leaders to hold
a face-to-face meeting with Chinese President Xi Jinping. Afterwards, a joint state-
ment on building “enduring friendship” and sharing “weal and woe” was released.
For most of Kazakhstan’s recent history power was held in the hands of former
President Nursultan Nazarbayev. That changed in 2019 when Nazarbayev, 81
years old in 2022, stepped aside and anointed his long-time ally Tokayev as his
successor. In his capacity as head of the security council that oversees the military
and security services, Nazarbayev continued to retain considerable sway over the
country. Tokayev announced later that he was taking over from Nazarbayev as
security council head.
Following the collapse of the Soviet Union and independence of Kazakhstan,
China and Kazakhstan have pursued a process of rapprochement. China has 9.6
million square kilometers and Kazakhstan 2.7 million square km². China is about
3.5 times bigger than Kazakhstan.
New Silk Road or the Belt and Road in September 2013 was initiated by Presi-
dent Xi Jinping who introduced an ambiguous, geoeconomic and geostrategic
during his visit to Kazakhstan. On 7 Sept. 2013, President Xi Jinping made a mem-
orable speech titled “Promote People-to-People Friendship and Create a Better
Future” in the capital Astana. This global infrastructural development strategy
was later defined as BRI which is an umbrella to set out to accomplish more ad-
vanced transport and essential economic and financial relationship.
The Belt and Road Initiative (BRI) is a prime example of how decarbonization
processes interact with geopolitics. China’s support to energy, transportation and
industrial projects and underpin the geopolitical aspirations of China and its part-
ners.
Kazakhstan is the largest land locked country in the world. Most part of the
country accounts for desert just less than fifty percent and semi-deserts more than
ten percent, Steppes occupy a quarter of Kazakhstan’s territory has five percent
forests. There are 8500 rivers in the country. The Caspian Sea, in the Northeastern
part, is also important. The Aral Sea is divided between Kazakhstan and Uzbeki-
stan. In Kazakhstan, there are 48,000 large and small lakes, among which are

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 J. A. Berlie, M. Benard

Balkhash, Zaisan and Alakol. The remoteness of the country from the oceans de-
termines the continental climate of the country.
There are more than 5000 deposits of mineral resources in the country, the es-
timated cost of which is said to be tens of trillions of dollars. The country is ranked
first in the world on explored reserves of zinc, tungsten and barite, second—on
silver, lead and chromites, third—on copper and fluorite, fourth—on molyb-
denum, and sixth—on gold.
Kazakhstan also has significant oil and gas resources and holds the 9th place in
the world in proven oil reserves, most of which are located in the western regions.
In addition, the country’s uranium and coal deposits are the 2nd and the 8th larg-
est in the world respectively.
Kazakhstan is among the world’s top ten exporters of grain and is one of the
leaders in flour export. Nearly seventy percent of arable land in the north of the
country is occupied by grain and industrial crops—wheat, barley, millet. Rice, cot-
ton, and tobacco are cultivated in the south of the country. Kazakhstan is also
famous for its gardens, vineyards and melons. Livestock farming is another main
area of agriculture in the country.
China is key partner in the Central Asian region due to its location, (as shown
in Figure 1) size, and substantial energy resources for Kazakhstan and their coop-
eration is very positive.

Figure 1. Chinese-Kazakh border region and border crossings.

In 2019, 75 percent of Kazakhstan’s population have access to the internet, a

figure well ahead of any other country in Central Asia.

3. Trade and Impact on the Expansion of the Middle Corridor

(MC) Transport Infrastructure
The Middle Corridor (as shown below in Figure 2) is a part of China Belt and

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 J. A. Berlie, M. Benard

Road Initiative. With the operationalization and potential expansion of the MC,
trade volumes between Kazakhstan and China are still very important. The MC
provides an alternative route for trade between China and Europe, bypassing tra-
ditional routes through Russia.

Figure 2. The MC among trade corridors connecting Europe and Asia (Source: Middle Trade and Transport Corridor, World Bank,
November 2023).

China’s geo-economic role has been growing steadily over the past three dec-
ades. The latest development when the presidents of Kazakhstan, Uzbekistan,
Kyrgyzstan, Turkmenistan and Tajikistan, as well as Chinese President Xi Jinping,
signed numerous agreements on bilateral cooperation was the first face-to-face
forum in Xian, China-Central Asia on 18 and 19 May 2023.
Kazakhstan’s reliance on trade routes through Russia may decrease as the MC
offers a more diversified and potentially more reliable option. This diversification
could lead to a shift in Kazakhstan’s trade patterns, with a greater proportion of
goods being transported through the MC.
The MC initiative involves significant investments in transport infrastructure
along the corridor, including railways, ports, and logistical hubs. This infrastruc-
ture development can enhance connectivity between Kazakhstan and China, fa-
cilitating smoother trade flows and reducing transport costs and time. In the first
two months of 2023, trade between China and the five Central Asian countries
surged by 22 percent compared to a year ago.
Upgrades in infrastructure along the MC, such as modernized railways and ex-
panded port capacities, can improve the connectivity between Kazakhstan and

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 J. A. Berlie, M. Benard

China. This enhanced connectivity can stimulate bilateral trade and economic co-
operation between the two countries.
MC presents a promising alternative to traditional shipping routes such as the
Fred Sea and the Northern Corridor. There is a potential to global trade connec-
tivity.

4. Policy [4] and Institutional Frameworks between

Kazakhstan and China
China and Kazakhstan have important political and economic relationship. The
Republic of Kazakhstan is a unitary state with the presidential system of govern-
ment. Under the Constitution, Kazakhstan is a democratic, secular, legal and so-
cial state which recognizes the man, his life, rights and freedoms as the supreme
values of the country.
Kazakhstan gained independence on December 16, 1991. Astana is the capital
city of the country.
Kazakh language is the official language of Kazakhstan. The Russian language
has the status of the language of interethnic communication. The unit of currency
used in Kazakhstan is tenge.
The President of the Republic of Kazakhstan is the head of state, the highest
political official, who determines the main directions of the domestic and foreign
policy of the country and represents Kazakhstan on the international arena. The
President is a symbol and guarantor of the national unity and the state power,
inviolability of the Constitution, as well as the rights and freedoms of an individ-
ual and citizen.
The Government implements executive powers, heads the system of executive
bodies and exercises supervision of their activity.
The Parliament of the Republic of Kazakhstan performs legislative functions
and consists of two Chambers acting on a permanent basis: the Senate and the
Majilis.
The Senate is composed of deputies, two of whom represent each region of the
country, as well as the cities of the national significance and the capital of Kazakh-
stan. Ten deputies of the Senate are appointed by the President, five of them by
the proposal of the Assembly of People of Kazakhstan.
The Majilis consists of 98 deputies. The term of the powers of Senate deputies
is six years; term of the powers of the Majilis deputies is five years.
The country is divided into 17 administrative zones and has 3 cities of national
significance. Kazakhstan and China may strengthen their cooperation through bi-
lateral agreements aimed at optimizing trade along the MC and new increased of
relationship with France (2022) exists. There is a trade decline because of the drop
in oil prices and the resultant weakening of Kazakhstan’s national currency (Cen-
tral Asia).
These agreements are focusing on uranium, streamlining customs procedures,
reducing trade barriers, and promoting mutual investments in infrastructure pro-
jects.

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 J. A. Berlie, M. Benard

Alignment with International Initiatives: Both Kazakhstan and China may align
their policies and strategies with broader international initiatives supporting trade
facilitation and infrastructure development, such as the Belt and Road Initiative
(BRI). This alignment could deepen their collaboration within the framework of
the MC.

5. Transition to a New Dependency or Adaptation to a More

Fragmented Environment and Economy [5]
Reduced Dependency on Russia: Kazakhstan’s reliance on Russian trade routes
may decrease as the MC provides an alternative pathway for trade with China and
Europe. This reduced dependency on Russia could contribute to Kazakhstan’s
economic diversification and geopolitical autonomy. The MC offers Kazakhstan
and China an opportunity to enhance their economic resilience by diversifying
their trade routes and reducing their exposure to geopolitical risks. This diversifi-
cation can strengthen their economic stability and competitiveness in the global
market.
Overall, the development of the Middle Corridor is expected to bring significant
changes to the relationship between Kazakhstan and China, fostering increased
trade, infrastructure development, policy cooperation, and enhanced economic
resilience.
Other Central Asian nations like Kyrgyzstan, Turkmenistan, and Uzbekistan
are following Kazakhstan’s lead in developing railway connections to the corridor
to enhance their own economic and strategic positions in the region [6]. Emulat-
ing Kazakhstan’s approach, these countries are looking to leverage the Middle
Corridor to advance their domestic development strategies and regional power
status.
Confirmed on 14 February 2024 with the travel of the French President Macron
to Kazakhstan, France is an important trading partner of Kazakhstan. In 2022,
France was already Kazakhstan’s fifth largest trading partner ahead of China. Ka-
zakh uranium constitutes 42 percent of the world production of uranium.
France-Kazakhstan. In 2022, France exported $932 M to Kazakhstan. The
main products that France exported to Kazakhstan are Planes, Helicopters and
Spacecraft ($237 M), Packaged Medicaments ($50.4 M), and Vaccines, blood, an-
tisera, toxins and cultures ($45.1 M). During the last 27 years the exports of France
to Kazakhstan have increased at an annualized rate of 12.8 percent, from $35.8 M
in 1995 to $932 M in 2022.
Kazakhstan-France. In 2022, Kazakhstan exported $3.18 B to France. The main
products that Kazakhstan exported to France were Crude Petroleum ($2.82 B),
Radioactive Chemicals ($237 M), and Gas Turbines ($45.8 M). During the last 27
years the exports of Kazakhstan to France have increased (France (FRA) and Ka-
zakhstan (KAZ) Trade (The Observatory of Economic Complexity
https://oec.world/en). In 2022, France ranked 14 in the Economic Complexity In-
dex (ECI 1.31), and 8 in total exports ($608 B). That same year, Kazakhstan ranked

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 J. A. Berlie, M. Benard

78 in the Economic Complexity Index (ECI −0.35), and 45 in total exports ($98.7).

6. Epilogue
Kazakhstan’s strategic location, rich resource base, and evolving foreign relations
make it a pivotal player in Central Asia. The Belt and Road Initiative [7] and the
Middle Corridor offer significant opportunities for enhancing trade and infra-
structure.
However, the recent shift towards stronger economic ties with France indicates
Kazakhstan’s desire for a more balanced and diversified foreign policy. This paper
concludes that while China remains the key partner, Kazakhstan is strategically
positioning itself to navigate a more fragmented and multipolar global environ-
ment [8].

Conflicts of Interest
The authors declare no conflicts of interest.

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DOI: 10.4236/oalib.1111627 8 Open Access Library Journal