Close Menu
Invest Intellect
    Facebook X (Twitter) Instagram
    Invest Intellect
    Facebook X (Twitter) Instagram Pinterest
    • Home
    • Commodities
    • Cryptocurrency
    • Fintech
    • Investments
    • Precious Metal
    • Property
    • Stock Market
    Invest Intellect
    Home»Investments»The Future of Chinese Engagement in Kazakhstan – The Diplomat
    Investments

    The Future of Chinese Engagement in Kazakhstan – The Diplomat

    March 25, 20254 Mins Read


    On March 10, U.S. Secretary of State Marco Rubio tweeted that 83 percent of the 6,200 projects run by USAID globally would be shut down. While it wasn’t stated exactly which programs were to be terminated, a leaked document from the Senate Foreign Relations Committee provides some insight. This document reveals that at least two Kazakh civil society projects promoting civic engagement and LGBTQ rights have been cut, losing nearly $6 million in funding. 

    As U.S.-backed projects close, China has been mentioned as a possible successor. In fact, China is already investing large sums into Central Asia, and specifically Kazakhstan.

    Despite China pouring vast sums of money into Kazakhstan, its financial influence remains far from matching that of the United States. Unlike the U.S., the bulk of Chinese funding does not come in the form of aid projects, but instead as loans. As a result, the scope of Chinese projects differs significantly from those previously run by USAID. Instead of civil society and media initiatives, Chinese funds are allocated primarily to infrastructure, energy, and industrial development.

    Despite many differences, both countries provide aid in the realm of health. A recent report by the China International Development Cooperation Agency (CIDCA) stated that the agency has begun focusing on what it calls “small and beautiful” projects. The term, originally used in the Belt and Road Initiative (BRI), reflects China’s shift toward smaller-scale, high-impact projects. One such focus is improving local health and medical care. These grants could be particularly significant for Kazakhstan, where health-related aid disbursements have decreased by almost 80 percent from last year. However, the likelihood of China providing foreign aid to Kazakhstan remains low, as it has not done so in the past, despite the close economic ties between the two countries.

    While CIDCA has held multiple meetings with Kazakh representatives in recent years, there is no evidence of direct aid being granted. Instead, these meetings have focused on expanding collaboration, particularly regarding loans and investments into other countries. Although Kazakhstan is unlikely to receive much aid from CIDCA in the near future, other aspects of the BRI are already directing funds toward Kazakh projects.

    During the COVID-19 pandemic, Kazakhstan received multiple financial contributions from Chinese state actors, mainly within the railroad industry, to prevent disease outbreaks. Since the end of the pandemic, however, such direct aid has largely ceased, with most Chinese projects now structured as loans or investments. These projects are primarily tied to the BRI, which aims to strengthen China’s connections with Europe and Africa, much like the historic Silk Road. 

    One example of this is the state-connected firm Sinopec, which invested approximately $1.25 billion last year in a petrochemical unit. In addition to producing sought after raw materials for plastic products, the plant is expected to generate 850 permanent jobs. And while some projects are financed as semi-private investments into Kazakhstan, many are also driven by state loans. An example of this is when the Bank of China lent Kazakhstan $100 million to build the Big Almaty Ring Road, completed in 2023, covering one-eighth of the total cost. Beyond its goal of reducing air pollution in Almaty, the project also created stable jobs. 

    While the loans given to Kazakhstan have put the country $9 billion in debt to China, these along with massive investments have bolstered Kazakhstan’s development in the sectors of infrastructure and energy. 

    Whether these financial commitments can generate the kind of soft power influence U.S.-backed civil society projects did remains uncertain.

    As China’s economic involvement in Kazakhstan continues to grow, the shift from grants to loans highlights a key distinction in its approach compared to the United States. While Beijing prioritizes long-term economic partnerships over traditional development aid, the future of Kazakhstan’s civil society remains in question. If U.S.-backed initiatives remain defunded, it is unlikely that China will step in to fill the gap, leaving Kazakhstan facing a challenging road ahead in fostering democratic governance and human rights.



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    Long-dated euro zone bonds sell off; Trump slaps on tariffs

    Investments

    CPP Investments to provide $225 million in funding for Ontario data center

    Investments

    Apple plans to ‘significantly’ grow AI investments, Cook says

    Investments

    Act fast, avoid pitfalls: Winning property tactics

    Investments

    Clark posts over P1B in investments from Jan-July

    Investments

    What’s best for your retirement planning?

    Investments
    Leave A Reply Cancel Reply

    Top Picks
    Commodities

    Hit by curbs on export of Indian commodities, Malaysia refers to friendly ties to urge India to ensure supplies

    Cryptocurrency

    Trump’s Treasury Nominee Says No to Digital Dollar—What It Means for the Future of Crypto

    Commodities

    Verso Energy, du carburant écolo bientôt produit à Saillat sur Vienne

    Editors Picks

    Polo Queen Industrial and FinTech investit 52,5 millions de roupies dans une filiale -Le 07 mars 2025 à 15:33

    March 7, 2025

    AI and IP USA 2025: Future-proofing event aims at intersection of technology and law | Artificial Intelligence

    July 10, 2025

    D.C. United’s Steven Birnbaum retires after painful injuries and recoveries

    July 16, 2024

    China’s Ping An raises $3.5 billion in convertible bond deal | The Mighty 790 KFGO

    July 16, 2024
    What's Hot

    Where are the 10 best places to invest in property in the UK?

    March 23, 2025

    AuditBoard Expands AI Capabilities, Empowering Customers to Define the Future of Audit, Risk, and Compliance

    October 24, 2024

    How Indian fintech startups are driving Malaysia’s UPI-like digital payments revolution – Firstpost

    August 20, 2024
    Our Picks

    InterRent Real Estate Investment Trust : National Bank maintient sa recommandation neutre

    May 16, 2025

    FiX25 Set to Ignite the Caribbean’s Fintech Ecosystem

    October 17, 2024

    How Low Can Stocks & Crypto Currencies Go? – July 22nd, 2024

    July 22, 2024
    Weekly Top

    Crude oil prices rise despite Trump’s tariffs on trading partners 

    July 31, 2025

    Metros where you can get a home well below asking price across the US

    July 31, 2025

    Top five fintech deals in Africa in H1

    July 31, 2025
    Editor's Pick

    Amid uncertainty, Hyderabad real estate firms gird up for US property show | Hyderabad News

    February 14, 2025

    Gold price backs off record high, but analysts remain bullish

    October 23, 2024

    La fintech Airwallex valorisée à plus de 6 milliards de dollars lors de son dernier tour de table

    May 21, 2025
    © 2025 Invest Intellect
    • Contact us
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.