China Expands Economic and Scientific Influence Across Central Asia
Key Takeaways
- •Uzbekistan and China launched Samarkand-2028, a joint hyperspectral satellite equipped with an Uzbek-developed AI module for agricultural and environmental monitoring applications.
- •The China-Kyrgyzstan-Uzbekistan railway may be completed at least a year ahead of schedule, with project costs potentially reaching $9 billion and Beijing retaining a 51 percent controlling stake once operational.
- •China overtook Russia as Kyrgyzstan's largest foreign investor in 2025 with $305.7 million in FDI, reversing two consecutive years of net Chinese capital outflows.
- •Kazakhstan is preparing to raise approximately $500 million through a second sovereign panda bond issuance as early as September, following earlier issuances by the government and its sovereign wealth fund.
- •Kazakhstan and China signed a three-year bilateral currency swap agreement aimed at reducing reliance on the US dollar in cross-border trade settlement.

Scientific cooperation is serving as a key vehicle for deepening China's economic influence across Central Asia, as Beijing and regional governments advance joint projects spanning space technology, agriculture, transportation infrastructure, and financial integration. The push builds on the framework established at the first China-Central Asia Summit, held in Xi'an in May 2023, which created a formal multilateral cooperation mechanism across the five post-Soviet Central Asian republics.
Science and Education Partnerships
Uzbekistan and China recently launched Samarkand-2028, a joint hyperspectral satellite designed to support agriculture, environmental monitoring, water resource management, and natural disaster response. The satellite incorporates an Uzbek-developed AI module for onboard data processing, which reduces the volume of data transmitted to ground stations while improving the speed and efficiency of image analysis.
Uzbek Agricultural Ministry officials are also collaborating with experts from the Chinese Academy of Sciences' Institute of Microbiology and Zhejiang University on an initiative to combat desertification and restore soil fertility in the Aral Sea region. The Aral Sea, once the world's fourth-largest lake, has shrunk dramatically since the 1960s due to Soviet-era irrigation diversions, leaving behind a vast toxic dust plain. The project further aims to develop drought-resistant plant varieties, according to Uzbekistan's state news agency, UzA.
In Kazakhstan, Minister of Science and Higher Education Sayasat Nurbek met with representatives of Chinese institutions conducting research at Kozybayev University. Discussions centered on expanding cooperation, applying research findings to improve agricultural yields, and developing training programs for Kazakh specialists.
Tajikistan is similarly seeking to strengthen educational and scientific ties with China. Officials from the Strategic Studies Center under the President of Tajikistan and a visiting delegation from the China International Communications Group — a state institution under the Communist Party's Central Committee — explored opportunities for joint analytical research, publications, and expert exchanges, as reported by the official Tajik news agency Khovar.
Transit and Connectivity
The China-Kyrgyzstan-Uzbekistan railway could be completed at least a year ahead of schedule, Uzbekistan's transport minister told public television channel Uzbekistan 24, without providing further specifics. The minister added that the three countries are working to simplify border crossings and digitize transport procedures, with the long-term objective of introducing permit-free transit. Once operational, the corridor would provide China a shorter overland freight route to the Middle East and Europe via Central Asia, complementing existing rail lines through Russia.
Former Kumtor Gold Company CEO Tengiz Bolturuk recently predicted that the railway project's cost could reach as much as $9 billion. China has provided a $5 billion loan to help finance the initiative, and once the railway is operational, Beijing will retain a 51 percent controlling stake.
Kazakhstan and China have discussed expanding aviation cooperation, including establishing new routes connecting Urumqi — the largest city in Xinjiang Province — with Karaganda, and Yining, Xinjiang's third-largest urban center, with Astana and Almaty. The two sides are also exploring the creation of a joint regional airline utilizing Chinese-made COMAC aircraft. COMAC, China's state-owned commercial aircraft manufacturer, is seeking international customers for its planes as it works to compete with established global duopoly Boeing and Airbus.
Kyrgyzstan and China are preparing an intergovernmental agreement to construct a cross-border road bridge at the Bedel checkpoint, according to Economist.kg. Separately, Kyrgyz carrier AeroNomad Airlines launched its first direct flight to China, linking Bishkek and Urumqi, Vesti.kg reported.
Kazakhstan: Bonds, Aviation Fuel, and Currency Swap
The Kazakh government is preparing to raise approximately $500 million through a second issuance of sovereign panda bonds — yuan-denominated securities sold within mainland China's domestic bond market. The new issue could launch as early as September, Bloomberg reports. If successful, it would mark Kazakhstan's second sovereign panda bond float and the country's third overall. In May, the government issued sovereign panda bonds totaling 3.4 billion yuan (over $500 million). In April, Kazakhstan's sovereign wealth fund, Samruk-Kazyna, issued the first-ever panda bonds in both Kazakhstan and Central Asia, amounting to 3 billion yuan (approximately $440 million).
Kazakhstan and China signed a memorandum of understanding to establish an integrated ecosystem for producing sustainable aviation fuel in Alatau, covering the full value chain from cultivating agricultural feedstocks through processing and fuel production, Inform.kz reported. The MoU also calls for exploring smart energy solutions and nickel-hydrogen energy storage systems to enhance energy reliability and support the integration of renewable energy sources.
Further advancing financial integration, Kazakhstan and China signed a three-year bilateral currency swap agreement, according to Kapital.kz. The agreement is designed to facilitate trade and investment by improving access to tenge and yuan liquidity, thereby encouraging greater use of national currencies in cross-border transactions. The arrangement aligns with a broader pattern among China's trading partners of reducing reliance on the US dollar in bilateral settlement.
Kyrgyzstan: Investment and Irrigation
China became Kyrgyzstan's largest foreign investor in 2025, surpassing Russia with $305.7 million in foreign direct investment. Total foreign investment in the country rose 31.4 percent year-on-year to $335.4 million, according to Eurasian Economic Commission data. The shift followed two consecutive years of net Chinese capital outflows and is notable given Russia's historically dominant economic role in the region, reinforced through the Moscow-led Eurasian Economic Union and Collective Security Treaty Organization.
China will also provide Kyrgyzstan with 370 pieces of specialized equipment valued at 148.9 million yuan as a grant to modernize the country's irrigation network, Open.kg reports. The equipment, intended for mechanized canal cleaning, is expected to improve water management and agricultural irrigation efficiency across the country. Water infrastructure is an increasingly pressing concern in Central Asia, where aging Soviet-era systems and climate-driven glacier retreat threaten long-term water availability.
Uzbekistan: Agricultural Exports
China's Ningxia Hui Autonomous Region delivered nearly 500 dairy and breeding cattle to Uzbekistan in early August. Since late last year, the region has supplied over 1,700 head of cattle to the Central Asian nation, Xinhua reported. The livestock transfers align with China's broader engagement in Central Asian agriculture, which has included joint cultivation projects, seed research, and food-processing investments across the region.