JUNE 6 2012 (The Conway Bulletin) – China had a gift for its Central Asia partners who attended the Shanghai Cooperation Organisation summit in Beijing on June 7.
It had set up a new $10b fund through its Export-Import Bank to loan to its neighbours. Of course there are strings attached and the fund will buy China yet more impact in the region.
It already has a huge amount of clout, much of the region’s energy resources heads east and rarely a week passes without new deal being announced, but China still clearly wants more from Central Asia.
The first big deal announced by China from its new fund was a $1.1b loan to help pay for a refit of its refinery near Atyrau in western Kazakhstan, media reported.
Reuters published figures that showed just how deeply China has invested over the past few years. According to Kazakhstan, China has invested $15b into the country since 1991, a tenth of all foreign investment. Roughly $10b of that, though, has come since 2008 and now, according to Kazakh President Nursultan Nazarbayev about 20% of all its energy exports will flow to China.
The rest of Central Asia has also seen a massive boost in Chinese investments over the past few years, a trend that looks set to continue.
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(News report from Issue No. 091, published on June 8 2012)