In a significant diplomatic move, Kazakh Deputy Prime Minister Serik Zhumangarin met with Ma Xingrui, Secretary of the Xinjiang Uygur Autonomous Region (XUAR) Communist Party, on December 6 in Urumqi. This meeting underscored Kazakhstan's ambitious plan to double its trade with Xinjiang, capitalizing on the region's pivotal role in its economy and trade dynamics. The Prime Minister’s press service has reported that Kazakhstan has set its sights on achieving a staggering US$100 billion in bilateral trade with China.

During the discussions, Zhumangarin highlighted Kazakhstan's potential to significantly increase exports to Xinjiang. "Through a careful analysis of our export and import capabilities, we've identified 180 product categories valued at US$1.6 billion that we could potentially supply to China. This includes items spanning the metallurgical, petrochemical, food, chemical, engineering sectors, and various construction materials," he elaborated.

XUAR stands as Kazakhstan’s largest trading partner within China, accounting for nearly half of the trade volume between the two nations. The partnership has demonstrated robust growth, with a 62% increase in trade in 2023, soaring to US$20.3 billion. The first nine months of 2024 saw an additional 22.46% increase, reaching US$17.67 billion.

Zhumangarin also praised the establishment of green corridors at border checkpoints, which aim to expedite agricultural exports and facilitate smoother trade operations. To further enhance this, he proposed extending the 24/7 operational hours at the Nur Zholy-Khorgos checkpoint to all road border crossings. Plans are also afoot to open additional checkpoints, namely at Narynkol-Muzart in the Almaty Region and Terekty-Aktobek in East Kazakhstan.

In a bid to boost regional connectivity and trade, Kazakhstan has introduced a multimodal transit corridor that interlinks Russia, Kazakhstan, and China via the Yertis River. This corridor is expected to present an initial freight capacity of 2 to 2.5 million tons, with proposals to open a new railway crossing at Maikapchagai-Zimunai and establish a river port near Tugyl village.

As trade between Kazakhstan and China continues to expand, over 80% of land shipments from China to Europe traverse through Kazakhstan. Notably, freight volumes along the Middle Corridor increased by 23% in the first nine months of 2024, reaching 3.4 million tons, with an ambitious target of ten million tons annually by 2030. Plans are underway to increase container train operations from 600 to 2,000 by 2029, alongside the development of a multimodal logistics terminal in Khorgos.

However, Zhumangarin flagged bureaucratic hurdles that impede agricultural exports to China. He stressed the need to resolve complicated phytosanitary protocols, particularly concerning potatoes and beet pulp, while also advocating for the lifting of beef and pork export restrictions to enhance trade flows.

In a trilateral meeting with Algernon Yau, Hong Kong's Secretary for Commerce and Economic Development, Zhumangarin explored innovative frameworks for collaboration. The initiative to strengthen ties between Kazakhstan and Hong Kong—with XUAR as an intermediary—was initially proposed by Xingrui during a bilateral meeting in June.

“China is a key investor in Kazakhstan’s economy, with Chinese funding involved in approximately 145 investment projects worth over US$38 billion. Currently, there are around 5,000 joint ventures in Kazakhstan,” Zhumangarin noted with optimism. He suggested forming a Kazakhstan-XUAR-Hong Kong Cooperation Council to foster trade, investment, and industrial synergies, with proposals for the council's inaugural meeting slated for next year in Kazakhstan.

Ideas for collaboration included joint ventures in agricultural processing, a proposed investment fund anchored in Urumqi or Hong Kong, and the establishment of a research center in Kazakhstan aimed at developing sustainable agricultural technologies.

In a bid to enhance tourism and e-commerce exchanges, Xingrui suggested developing tourism routes that would enable Hong Kong visitors to access Urumqi and discover the beauty of Kazakhstan. This could be complemented by regular air and land routes between Kazakhstan, Xinjiang, and Hong Kong.

Highlighting Hong Kong's pivotal role as a financial and aviation hub, Yau encouraged Kazakh enterprises to establish a presence in Hong Kong to tap into the Greater Bay Area and ASEAN markets. Furthermore, Kazakhstan has expressed keen interest in learning from Hong Kong's e-commerce advancements and invited representatives from the Hong Kong Stock Exchange to share their insights.

"We are eager to expand our cooperation under the Digital Silk Road initiative," Zhumangarin added. "We have had fruitful experiences collaborating on national pavilions on China's electronic trading platforms, and we look forward to developing these endeavors further."

As Kazakhstan and Xinjiang strengthen their ties, the potential for economic growth and collaborative ventures appears boundless. Keep an eye on this dynamic partnership, as it sets the stage for a prosperous future!