China has quietly but dramatically changed its economic approach to the countries of Central Asia—a shift with enormous consequences not only for the region but for Beijing’s relationship with Moscow. Until recently, China had provided loans to the countries of the region to build railway routes across Central Asia as part of its Belt and Road Initiative. These routes linked China with Europe, bypassing the Russian Federation (see EDM, March 21, 2019). Now, it has largely ended such projects and, instead, is investing heavily in manufacturing firms in Central Asia. On the one hand, this suggests that China may now plan to use Russian routes more heavily, at least in the short term, something Moscow will certainly welcome. But on the other hand, it means that the Central Asian countries are likely to become both more economically independent of Russia and more closely integrated into China’s growing economic empire, an outcome that will further diminish Moscow’s influence in the region and could even reduce the willingness of Central Asians to move to Russia as migrant workers. Neither of these effects is likely to please the Kremlin.
Beijing Changes Its Approach to Economic Expansion in Central Asia – Jamestown