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Tajikistan invites China to invest in its industrial, energy and transport sectors

Posted on by darion

14:16, todayAuthor: Asia-Plus

Financing of priority projects in Tajikistan was discussed in Dushanbe on May 29 during a meeting between the Minister of Economic Development and Trade of Tajikistan, Mr. Zavqi Zavqizod, and the President of the Silk Road Fund, Mr. Cai Xuejun.

The press center of the Ministry of Economic Development and Trade (MoEDT) reports that during the meeting, Mr. Zavqizoda, in connection with the allocation of 26 billion yuan ($3.6 billion) by the Chinese government to finance Central Asian countries, presented Tajikistan’s investment opportunities.

In particular, the minister proposed a discussion on the financing of projects previously submitted to China for consideration, which was positively received. Projects include:

  • Modernization of the Tajik aluminum smelter (TALCO);
  • Construction of a solar power plant in Asht district, Sughd province;
  • Establishment of a textile enterprise in Dushanbe on the basis of the Tajik Textile Production Association LLC;
  • Establishment of a logistics center in the Danghara District of Khatlon Province;
  • Construction of a joint industrial and technological park;
  • Construction of a greenhouse in Khatlon Province
  • Renovation of the Guliston-Kulob highway in Khatlon province;
  • Revitalization of the road village of Rushan-Varshez (Shugnan district) in the Gorno Badakhshan Autonomous Region (GBAO).

It is worth noting that in May last year, Chinese President Xi Jinping announced plans to provide 26 billion yuan in grants to strengthen development capacity, reduce poverty and create jobs in Central Asian countries.

According to the State Commission for Investment and Management of State Assets of Tajikistan (GosKomInvest), China is Tajikistan’s main investor. The total volume of Chinese investments in Tajikistan’s economy in 2007–2023 amounted to approximately $3.9 billion, some of which took the form of subsidies.

Additionally, China is Tajikistan’s main creditor. According to the Ministry of Finance of Tajikistan, as of early 2024, Tajikistan’s debt to China was USD 900 million, which constitutes 27.8% of the country’s total foreign debt.

In Tajikistan’s foreign trade turnover, China ranks second, just behind Russia.

According to data from the Statistical Agency under the President of Tajikistan, bilateral trade between Tajikistan and China last year amounted to over $1.5 billion, which is 24.2% more than in 2022. It consisted of Tajikistan’s exports to China estimated at SUS $313.8 million and Tajikistan’s imports from China worth approximately $1.2 billion.

The share of trade with China in Tajikistan’s total foreign trade turnover last year was 18%.

The Silk Road Fund is a Chinese government advisory fund designed to support increased investment in countries along the Belt and Road Initiative (formerly One Belt, One Road), an economic development initiative primarily covering Eurasia. The Chinese government allocated $40 billion to establish an investment fund established on December 29, 2014.

The Silk Road Fund is the only one of China’s sovereign funds that was established with a clear geoeconomic strategic mission. It was established by President Xi Jinping to support the policies and priorities of the Belt and Road Initiative and closely follows the BRI’s focus on infrastructure, connectivity, resource development and industrial capacity development.