Participants of the second friendly dialogue of cross-border cooperation between Kazakhstan and China, which was held in Almaty during the official visit of Ma Xinzhui, member of the Politburo of the CPC Central Committee, Secretary of the Communist Party Committee of Xinjiang Uygur Autonomous Region of the People's Republic of China, to Kazakhstan agreed on strengthening of bilateral economic relations.

Between Kazakhstan and China there was a special character of mutual relations in all directions of activity. This is evidenced by the continuous interaction of the countries in matters of trade, investment and logistics.

"The Heads of State pay considerable attention to the development of comprehensive cooperation. This year, the One Belt, One Road initiative turns 10 years old. During this period, our partnership has reached a new qualitative level. Positive dynamics is observed in all areas of cooperation. Today, Kazakhstan has 3,300 joint ventures in such strategic industries as the mining and metallurgy complex, the manufacturing industry, and others," Deputy Prime Minister and Minister of Trade and Integration Serik Zhumangarin said when opening the forum.

The key region, which traditionally connects the countries, is China's Xinjiang, which accounts for over 40% of the total trade turnover between Kazakhstan and China. Meanwhile the two countries have great potential for expanding trade and economic cooperation.

According to the Vice Premier, Kazakhstan is ready to offer Chinese buyers a wide range of industrial and agricultural goods in 135 commodity items worth over $1 billion. In particular, Kazakh enterprises can supply China with chilled meat products, fish products, poultry and by-products, pork, eggs, horse meat and other types of high-margin goods.

"For this purpose, it is very important to eliminate restrictions on the export of Kazakh meat products to China related to animal diseases. The other day the World Organization for Animal Health recommended confirming the status of five south-eastern zones of Kazakhstan free of foot and mouth disease with vaccination," Serik Zhumangarin addressed the representatives of the Chinese delegation.

In his speech at the forum, Deputy Prime Minister also noted the need for specialists from the General Customs Administration of China to come to Kazakhstan to conduct inspections of Kazakh producers of crop and livestock products. This will accelerate the procedure for signing and approving protocols on the requirements for certain types of domestic agricultural products.

"Kazakhstan is ready to increase the volume of annual wheat supplies to China to 1 million tons and more. To this end, among other things, there are infrastructural opportunities. I gave an order to send a pilot train of grain to the bond zone of the People's Republic of China," Serik Zhumangarin informed the participants of the event and proposed to create a sub-committee on agriculture between Kazakhstan and China to promptly solve the issues of mutual trade.

At the forum of cross-border cooperation, the parties discussed ways to improve the efficiency of checkpoints, logistics centers and transport infrastructure along the border.

Measures are being taken to modernize the trade infrastructure and border control system at the International Border Crossing Center Khorgos and the SEZ Khorgos-Eastern Gate. Transit directions are being developed, including within the framework of the Trans-Caspian international transport route. In 2022, the volume of cargo transported in transit by railroad of Kazakhstan increased by 1.1 million tons and amounted to 9.4 million tons. Transit shipments by road from the People's Republic of China doubled and amounted to 980,600 tons. 

According to the Deputy Prime Minister and Minister of Trade and Integration of Kazakhstan, the port of Lianyungang in conjunction with the Kazakh-Chinese logistics terminal has formed the necessary framework for the smooth transit of goods. To create favorable infrastructural conditions, it is planned to build a trade hub in Urumqi and Almaty. In addition, a third railway crossing between Kazakhstan and China will be opened near the road border crossing Bakhty ( Kazakhstan) - Chuguchak (China).

The event was attended by the akims of the city of Almaty, four border regions of Kazakhstan (Abay, Zhetisu, Almaty, East Kazakhstan) and representatives of the XUAR, as well as business delegations from the two countries. In particular, the forum was attended by over 150 Kazakhstani businessmen, 20 leading Xinjiang businessmen, 10 representatives of major Chinese investment companies present in Kazakhstan. 

On the margins of the forum, bilateral negotiations in the B2B format were held between Kazakh and Chinese entrepreneurs in various economic spheres: construction, energy, mining, agriculture, food industry, engineering, tourism, investment and others. Sixteen bilateral documents were signed, including five commercial ones worth $565.4 million.

The event was organized by the Ministry of Trade and Integration of the Republic of Kazakhstan with the support of the Almaty Akimat and QazTrade Trade Policy Development Center JSC. 

For reference: based on the results of 2022 mutual trade between Kazakhstan and China reached $24 bln. Export of Kazakhstani products in China increased by over a third to over $13 bln, while import increased by 33.5% to $11 bln. 

Kazakhstan exports oil, copper and copper cathodes, copper ores and concentrates, natural gas, ferroalloys, uranium, sunflower oil to China. China imports mainly telephone sets, computers, electrical generator sets, ferrous metal products, tires, car and tractor parts and accessories, road and construction equipment, and automobiles.

#International Cooperation #Serik Zhumangarin