Kazakhstan and China have signed 58 commercial agreements totaling over $24 billion. These deals were formalized during the ongoing II China-Central Asia Industrial-Investment Forum in Astana, attended by Kazakhstan’s First Vice Prime Minister Roman Sklyar, according to Kazinform News Agency. Kazakhstan intends to launch new plants, agricultural hubs, and energy facilities across its regions in the near future.
In the Zhambyl region, a major corn processing project is underway. China’s Fufeng Group plans to invest $800 million in building a plant capable of processing 1 million tons of corn annually. The facility will produce high value-added products such as lysine and amino acids, create approximately 1,500 jobs, and has already begun contracting local farmers for raw material supply.
In Turkistan region, Xinjiang Lihua Group Co Ltd is spearheading a $420 million cotton cluster project. This initiative encompasses the entire production cycle—from cultivation to deep processing and textile manufacturing. It aims to boost import substitution, expand exports, and strengthen the light industry by constructing 10 enterprises, creating over 4,000 jobs.
Meanwhile, Dalian Hesheng Holdings will invest $650 million in a deep grain processing plant in the Akmola region. The facility will produce export-oriented goods like gluten and starch, and aims to establish long-term contracts with local farmers, spurring development in agricultural processing.
In Almaty region, TBEA Company Limited is advancing a large-scale energy project. A 1000 MW power plant and a transformer plant are set to be launched, with plans also underway for a 1,320 MW coal-fired thermal power plant to supply heat to Alatau city. The total investment for the energy infrastructure is projected at $3.7 billion.
Qingdao Wanlin Food Corporation is investing $89 million to establish a plant for onion dehydration and deep vegetable processing. Products from this facility will be exported to China, the U.S., and Europe, and the plant is expected to employ around 300 people.
Additionally, Kazakhstan is partnering with several other major Chinese firms, including China Construction Engineering Corporation, Energy China Group, CITIC Construction, China CAMC Engineering, Huawei, Aladdin Holdings Group, and YTO Express. The signed agreements span a wide range of sectors such as energy, agriculture, transport, information and communication technologies, and education.
Both countries have also agreed to collaborate in areas like advanced agricultural processing, renewable energy, urban infrastructure, and coal chemistry.
Key Terms and Concepts
What is the China-Central Asia Industrial-Investment Forum?
This is a high-level economic platform launched to promote industrial and investment cooperation between China and Central Asian countries. In 2025, its second edition in Astana served as the stage for $24 billion worth of deals, reflecting China’s deepening economic integration in the region.
What does “deep processing” mean in agriculture?
Deep processing refers to turning raw agricultural products into refined, high-value goods, like converting corn into lysine or starch. This approach boosts export potential, creates jobs, and reduces reliance on commodity exports, which is a strategic priority for Kazakhstan.
What is import substitution and why is it important?
Import substitution involves developing local industries to produce goods that would otherwise be imported. Projects like the Turkistan cotton cluster aim to reduce dependency on foreign textiles, strengthen domestic value chains, and enhance economic sovereignty.
What are Special Economic Zones (SEZs) and are they involved here?
While not explicitly mentioned in the article, many similar investment projects in Central Asia operate within SEZs, which offer tax incentives and regulatory flexibility. Kazakhstan uses SEZs to attract foreign capital and accelerate regional development.
How do foreign investments impact job creation in emerging economies?
Large-scale projects like the $800 million corn plant and $420 million cotton cluster are expected to create thousands of jobs. Beyond employment, these investments stimulate local economies, foster technology transfer, and enhance workforce skills.
Why is China investing heavily in Central Asia in 2025?
China’s increased investments are part of its Belt and Road Initiative (BRI) and broader strategy to secure supply chains, access natural resources, and develop friendly trade routes amid rising global competition and shifting geopolitics.
What is a coal thermal power plant and why is Kazakhstan building one?
A coal thermal power plant uses coal combustion to produce electricity and heat. Despite global clean energy trends, Kazakhstan is still building such plants (like the 1320 MW in Almaty region) to meet rising energy demands and ensure stable winter heating.
What is a commercial agreement or MoU in international trade?
A commercial agreement, often formalized through a Memorandum of Understanding (MoU), sets terms for future investments, technology transfers, and collaborations. The 58 Kazakhstan-China deals signed in 2025 serve as blueprints for large-scale industrial cooperation.
How are agricultural clusters different from traditional farming?
Agricultural clusters are integrated networks that connect farming, processing, logistics, and export operations. Unlike standalone farms, clusters boost efficiency, value addition, and international competitiveness—key goals for Kazakhstan’s agri-sector in 2025.
What role do Chinese companies like Huawei and CITIC play in Kazakhstan?
Firms like Huawei contribute to ICT development, while CITIC and CAMC Engineering are involved in infrastructure and industrial projects. Their involvement in 2025 reflects China’s broad economic footprint in Central Asia, beyond just raw material extraction.
