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Chinese Economic presence in Kazakhstan

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2.1 Short review of bilateral trade Principles of friendly relations between the Republic of Kazakhstan and the People’s Republic of China." Within 20 years were formed principles and legal basis of mutual relations development. There were signed about 200 documents on bilateral cooperation in political, economic spheres, and also in the security and cultural cooperation field. Economic presence and interest of China in Kazakhstan have considerably increased recently. In general, the main economic interests of China in Kazakhstan are: 1. Obtaining the access to oil and gas sources in order of ensuring China’s energy security. In recent years, the growth of Chinese economy has increased domestic energy demand, therefore, sharply increased the import volume of oil and petroleum products. Growing Chinese economy, in particular, its western areas demand new energy sources which can be imported from Kazakhstan on mutually advantageous conditions. 2. Use of transport-communication potential of Kazakhstan for promotion of the Chinese goods on the western markets. 3. Enhancement of bilateral trade, the development of Kazakhstan’s consumer market. Shaping of the Kazakh-Chinese relations can be divided into four stages: 1. The first stage — since 1991 till April, 1996. The period is characterized by the development of bilateral relations. There were established relationships in the field of foreign policy, which were developed through the establishment of diplomatic relations and mutual visits at the high governmental levels; at that time economic, trade, security cooperation was steadily developing, have been achieved a mutual understanding in areas related to the prohibition of nuclear weapons use. 2. The second phase began with the signing by China, Russia, Kazakhstan, Tajikistan, Kyrgyzstan in Shanghai «Agreement on Confidence Building in the military field and the mutual reduction of armed forces in the border area» it were marked as an agreement of the Shanghai Five. Thus, the Kazakhstan-China relations have entered to a new period of bilateral and multilateral relations parallel development. Intergovernmental relations meant a granting guarantees for strengthening mutual cooperation. 3. The third stage. In 2005, Chinese President Hu Jintao and our President N. A. Nazarbayev signed a Declaration of strategic partnership between the two countries. The Chinese side reaffirmed that it will continue cooperation with Kazakhstan through the frameworks of the SCO and CICA. 4. The fourth phase. Since 2011, countries established relations of «comprehensive strategic partnership», expanded energy, transport and communication cooperation. The economic cooperation between China and Kazakhstan. Economic and trade relations between China and Kazakhstan are developing on a basis of advanced contractual base, which includes more than 30 documents. The great value for progress in this sphere has an activity of the Kazakh-Chinese intergovernmental commission on trade and economic cooperation. Furthermore, each visit of Kazakh and Chinese politicians to Astana and Beijing usually results to new arrangements in the sphere of trade. [7] The trade value between China and Kazakhstan reached a record high of 17.6 billion U.S. dollars in 2008, exceeding the strategic target of more than 15 billion U.S. dollars in 2015 set by the leaders of the two countries ahead of schedule. The bilateral trade value exceeded 20 billion U.S. dollars in 2010, accounting for more than 70 percent of the total trade value between China and Central Asia and representing more than 50 times that of the early period after the establishment of the diplomatic ties between the two countries. China has become Kazakhstan's largest trade partner and Kazakhstan is China's second largest trade partner among the Commonwealth of Independent States.[8] Le Yucheng, Chinese Ambassador to Kazakhstan claims that Chinese-Kazakh bilateral trade turnover amounted to $25.6 billion in 2013. [9 ] It is expected that the volume of the trade turnover will exceed $ 40 billion in 2015.   Table 1. Chinese-kazakh Trade at a glance    
Table 2. Merchandise trade matrix - product groups, imports in thousands of dollars, annual, 1995-2013
YEAR            
PRODUCT            
Total all products 50 915 368 017 5 328 195 5 528 843 7 621 707 11 269 970
Primary commodities (SITC 0 + 1 + 2 + 3 + 4 + 68) (5) 13 837 (5) 24 497 (5) 172 516 (5) 176 376 (5) 264 359 (5) 374 259
Primary commodities, excluding fuels (SITC 0 + 1 + 2 + 4 + 68) (5) 12 779 (5) 12 024 (5) 128 107 (5) 155 547 (5) 192 576 (5) 269 576
All food items (SITC 0 + 1 + 22 + 4) (5) 11 825 (5) 8 675 (5) 62 208 (5) 117 058 (5) 150 763 (5) 233 117
Food, basic (SITC 0 + 22 + 4) (5) 8 294 (5) 6 807 (5) 60 371 (5) 115 628 (5) 149 548 (5) 232 094
Agricultural raw materials (SITC 2 less 22, 27 and 28) (5) 364 (5) 114 (5) 1 456 (5) 4 017 (5) 6 325 (5) 5 307
Fuels (SITC 3) (5) 1 058 (5) 12 473 (5) 44 409 (5) 20 829 (5) 71 783 (5) 104 683
Manufactured goods (SITC 5 to 8 less 667 and 68) (5) 37 078 (5) 341 092 (5) 5 155 627 (5) 5 352 397 (5) 7 356 670 (5) 10 890 940
Chemical products (SITC 5) (5) 4 504 (5) 22 091 (5) 232 497 (5) 264 512 (5) 350 269 (5) 540 560
Machinery and transport equipment (SITC 7) (5) 7 440 (5) 62 252 (5) 1 830 845 (5) 1 301 508 (5) 2 355 981 (5) 4 175 079
Electronic excluding parts and components (SITC 751 + 752 + 761 + 762 + 763 + 775) (5) 2 043 (5) 13 259 (5) 227 393 (5) 199 441 (5) 356 634 (5) 802 037
Parts and components for electrical and electronic goods (SITC 759 + 764 + 772 +776) (5) 192 (5) 4 037 (5) 174 445 (5) 138 505 (5) 301 468 (5) 586 075
Merchandise trade matrix - detailed products, exports in thousands of dollars, annual, 1995-2013

 

YEAR          
PRODUCT          
[TOTAL] Total all products 283 929 670 567 2 422 507 10 122 070 14 334 297
[274] Sulphur and unroasted iron pyrites .. .. 8 742 67 737 101 283
[281] Iron ore and concentrates .. .. 163 710 682 216 721 054
[333] Petroleum oils, oils from bitumin. materials, crude .. 106 121 417 546 5 374 405 8 690 390
[525] Radio-actives and associated materials .. .. 52 626 934 225 1 327 796
[641] Paper and paperboard ..   .. .. ..
[671] Pig iron & spiegeleisen, sponge iron, powder & granu 4 961   114 096 434 310 474 654
[682] Copper 2 206 64 620 569 246 1 266 163 1 628 408
[684] Aluminium 5 207 58 534 11 703 157 777 12 496
[685] Lead .. .. 1 224 5 729 71 977
[686] Zinc ..   225 485 145 906 283 046
Other: ECONOMY (Kazakhstan), PARTNER (China)

 

 
 
 
   
   

 

Table 4. Merchandise trade matrix – imports and exports in thousands of dollars, annual, 1995-2013
YEAR          
PRODUCT          
[TOTAL] Total all products 3 805 117 4 926 559 17 333 159 28 408 680 48 871 869
[Exports] Total all products 5 226 722 8 652 481 27 846 085 57 244 064 82 510 023

Kazakhstan’s total trade:

 

 


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