By Yunis Sharifli
After 20 years of negotiations, the construction of the China-Kyrgyzstan-Uzbekistan (CKU) railway is hoped to finally begin next year. An online meeting took place between China, Kyrgyzstan, and Uzbekistan recently and, according to their announcement, feasibility studies will be finished this year. Kyrgyz President Sadyr Japarov said construction will begin in 2023.
Amid the Russia-Ukraine war, the CKU railway presents a number of strategic and economic opportunities for China, especially in the context of land-based trade relations with the European Union. In terms of strategic opportunities, it’s not surprising, first, that the announcement came at a time of increased international sanctions on Russia. Since the war started, different international companies have decided to stop using Russian territory as a transit country, some in response to Russian aggression and others due to the deteriorating business environment in the country. The CKU railway gives China the chance to diversify its trade routes, reduce its dependence on Russian routes, and maintain sustainable rail trade with EU countries in the long term.
Second, the new route will create an opportunity for Beijing not just to reduce its dependency on Russian territory but also to decrease its reliance on Kazakhstan as a transit country. This factor is particularly important because recent domestic turmoil in Kazakhstan showed that reliance on any one country in Central Asia for railway trade may be risky. In this context, the CKU railway can help China diversify its rail routes and switch cargoes from one route to another during future crises.
Finally, in addition to diversifying the route, the new railway can contribute to Kyrgyzstan and Uzbekistan’s economies. They would not only enjoy transit fees but also the railway routes may create new jobs.
New business opportunities in Kyrgyzstan and Uzbekistan are important for China because they help the two Central Asian countries, particularly Kyrgyzstan, maintain resilience and reduce the risk of civil unrest, and thus help China stabilize its Western borders.
Source: DIPLOMAT
