The vast Chinese northwestern frontier region of Xinjiang may serve as a useful early indicator of how Beijing’s much-touted “Belt and Road Initiative” (BRI) is supposed to work – and how successful it may become.
The region, which is home to several muslim minority peoples, has been wracked by ethnic turmoil for decades, prompting Beijing to seek to nurture social stability by driving economic development through hefty investments.
But for this strategy to gain traction, Beijing realised that it needed to boost development in the region around Xinjiang by building commercial corridors to neighbouring Central Asian countries such as Kazakhstan, Tajikistan, Kyrgyzstan, Uzbekistan and Turkmenistan. Thus, Xinjiang was key motivator behind the BRI concept.
But so far the results have been underwhelming. In the three years since the forerunner of the BRI was launched, Xinjiang’s trade volume has not increased and it still constitutes an unchanging portion of total Chinese trade with Central Asia (see chart). This discrepancy between action and results raises questions about whether the BRI is a turning point in Chinese economic policy or simply old wine in a new bottle.
Outside Kyrgyzstan’s capital, Bishkek, lie two major transit hubs. To the west is the Manas Transit Center, the United States’ main waypoint for soldiers coming in and out of Afghanistan. And to the north is the Dordoi bazaar, said to be the largest re-export market in Central Asia, a funnel for cheap Chinese goods to the relatively rich consumers of Kazakhstan and Russia. The Manas Transit Center is set to close in 2014, marking the end of Washington’s major security presence in the region. Dordoi, meanwhile, will be open indefinitely, an enduring symbol of the region’s Chinese-dominated future. Continue reading →
Central Asia’s beating heart, the commercial hub of the region that cultivated the old Silk Road, is neither of the fabled Thousand and One Nights cities of Samarkand or Bukhara. In fact, the center of this region is not even really in Central Asia. It’s in China.
Urumqi, capital of Xinjiang, the autonomous region that together with Tibet makes up China’s western edge, is a bubbling, gritty metropolis, and probably the most cosmopolitan place between Shanghai and Istanbul. On the surface, Urumqi resembles most second-tier Chinese industrial hubs. But, with its myriad advertisements, signs and business placards in Chinese, Uighur, Russian, Kazakh and Kyrgyz — written in Chinese, Arabic or Cyrillic scripts –Urumqi is no ordinary Chinese city. In fact, it has emerged as the de factocapital of a revived Central Asia, a region poised to assume a higher profile in the world’s energy, diplomatic, and cultural scenes. Continue reading →
Last week, we have been visiting Tashkent, Uzbekistan as part of our ongoing research on Chinese interests in Central Asia.
Fortunately, on the flight here from Beijing, one of us had the good fortune to be seated amidst a boisterous group of 40 Xinjiang businessmen part of a provincial business delegation attending a trade fair in Tashkent. They had been forced to fly through Beijing from Urumqi – a geographically illogical route – due to the fact that there are no direct flights between Tashkent and Urumqi.
At their invitation, we visited the trade fair earlier this week. Held in an old exhibition hall in the outskirts of Tashkent it was a no-frills affair with basic booths lined up four by four. In its fourth year, the Xinjiang Trade Expo was sponsored by the Uzbek Chamber of Commerce, the Xinjiang government, and the bingtuan (the former People’s Liberation Army (PLA)-managed state owned enterprise (SOE) responsible for much of Xinjiang’s industries). Continue reading →