Kyrgyzstan business opportunities amid closer Chinese-Kyrgyz ties

Chinese President Xi Jinping will pay a state visit to Kyrgyzstan and attend the Shanghai Cooperation Organisation summit. This while the construction of the China-Kyrgyzstan-Uzbekistan railway gets underway.

Arriving in Kyrgyzstan’s capital, Bishkek, the skyline seems to change by the day. As the city expands and its population grows, construction is booming. Output from the sector surged by more than 70 percent in the first quarter of this year, with many projects backed by Chinese companies.

One of them is this 30-storey commercial and residential tower, expected to be completed next year. It will briefly become the tallest approved building in the capital.

Kyrgyzstan lies in an earthquake-prone region, but earthquake-resistant construction techniques remain underdeveloped, and most buildings are only around a dozen storeys high. A Chinese company executive says China’s well-developed supply chain makes it easier to source materials that meet Kyrgyzstan’s seismic requirements.

The China-Kyrgyzstan-Uzbekistan railway is expected to be completed in 2031. It will become the shortest freight route linking China with Central Asia, the Middle East and Europe, cutting the journey by around 900 kilometres and saving 7 to 8 days. The project could further strengthen Kyrgyzstan’s role as a logistics hub. The executive describes Kyrgyzstan as a blue ocean market, with relatively low competition and fewer barriers for foreign investors. Corporate income tax stands at 10%, among the lowerst in Central Asia.

A representative of the Chinese business community adds that growing electricity demand is creating opportunities in renewable energy, while the country is also develping digital economy. China is Kyrgyzstan’s largest source of foreign investment. The two countries aim to raise bilateral trade to 45 billion US dollars by 2030.