16 August 2023, 11:24
Over 200 businessmen from Shenzhen, the largest economic and industrial center of the PRC, participated in the first Kazakhstan-China Business Forum on August 14, 2023. The event, organized jointly by the Kazakhstan-China Trade Promotion Association and Zshenzhen Cross Supply Service Association, brought together potential Chinese investors to learn about investment opportunities in Kazakhstan.
At the opening of the forum, Serik Zhumangarin, Deputy Prime Minister and Minister of Trade and Integration of Kazakhstan, noted the close and friendly relationship between the peoples and cultures of the two countries.
"Our countries, our cultures, economies are closely linked by long-standing friendly and partnership relations. The heads of both states pay special attention to the further development of their comprehensive cooperation. Today we are on the way to opening a visa-free regime in the near future. This will undoubtedly give a significant impetus to strengthening the development of cultural, humanitarian and economic ties," Zhumangarin said.
Deputy Prime Minister outlined three main areas for investment in Kazakhstan. The first is logistics, which includes the development of existing and creation of new routes, infrastructure, loading and unloading centers, etc. It is of particular interest to major transportation operators.
"At present, a network of cross-border trade and economic hubs, logistics centers is being created, which will become the backbone of the EAEU and Central Asian countries with the prospect of further expansion. In each region of Kazakhstan there are special economic and industrial zones created taking into account the specifics of this or that region. Within these zones, a pool of tax preferences is provided and a special legal regime is in place. Along with investment preferences in the form of tax and duty exemptions, an investment tax credit has recently been introduced to reduce the burden on investors during the initial period of their activities. Within the framework of this credit, investors are given the opportunity to reduce by 100% payments on corporate income tax and (or) property tax for a period of up to three years," Zhumangarin emphasized.
As of today, the Khorgos-Eastern Gateway FEZ has been fully completed on the border with China for the development of unimpeded trade. The FEZ infrastructure, along with industrial and logistics zones, includes a dry port. It was launched in 2015 to consolidate and distribute cargo in the east of the country. In 2014, a joint logistics terminal with Chinese partners was established in Lianyungang port, which is now the main point of consolidation of cargo flows to/from Kazakhstan. The dry port in technological linkage with two railway crossings on the border with China, the Zhetygen-Korgas railroad and the Western Europe-Western China highway and the involvement of competent major transport and logistics operators opened a new stage in the development of Eurasian transcontinental transportation.
The second direction for investments Deputy Prime Minister noted deep processing of products, and the third - agriculture.
For reference: Mutual trade between Kazakhstan and China reached a record high in 2022, amounting to $24.1 billion, including exports of Kazakh products to China grew by more than a third to $13.2 billion. Similarly, the need for Chinese goods in Kazakhstan is growing. Imports grew by 33.5% to $11 bln. Trade between the countries in the first half of 2023 showed a 20.5% increase to $13.6 bln, of which $6.3 bln were Kazakhstani exports.#Agriculture #International Cooperation #Serik Zhumangarin