EEU to stimulate Sino-Kazakh cooperation in the long term - Li Ziguo
BEIJING. KAZINFORM - Over the past couple of years China has seen a slight drop in trade with some foreign countries caused by slowdown in global economic growth, decrease in prices at China's market and restructuring of its economy.
In this context, Beijing is particularly interested in the integration processes taking place in the Eurasian space. The Geopolitical situation in the Eurasian space and Sino-Kazakh relations roundtable where leading Chinese experts exchanged their views was held at the Kazakh Embassy in China. Li Ziguo, the Deputy Director of the Department for SCO Studies at China Institute of International Studies (CIIS), shared his vision of prospects for the development of cooperation between Kazakhstan and China with Kazinform correspondent. Do integration processes in the Eurasian space affect Sino-Kazakh bilateral relations? China welcomes the process of integration of Kazakhstan with the Eurasian Economic Union (EEU). But, of course, in the beginning creation of this union will negatively affect the trade between China and Kazakhstan to some extent. Kazakhstan will increase its customs tariffs from 6 to 10% and that, in turn, will reduce the bilateral sales turnover. In the long term, the EEU creation will have positive impact because China will get access to a huge market and new investment opportunities. What steps will Beijing take in order to minimize the consequences for its economy? Chinese businessmen are closely examining the process of economic integration between Kazakhstan, Russia and Belarus. I believe they will ‘halt their investments' into Kazakhstan. Creation of joint ventures is eyed as one of the options to minimize the consequences. For instance, Chinese automaker Geely intends to manufacture its products in Kazakhstan and sell them in the EEU. What spheres of the Sino-Kazakh economic cooperation are the most competitive and sustainable in the conditions of integration within the EEU? Well, first of all, it is investment sphere. Secondly, joint infrastructure projects, including construction of motorways and railways, telecommunications and agriculture. Kazakhstan exports over 7 million tons of wheat to China annually. The sphere of tourism is also quite promising in terms of bilateral cooperation. Do China's initiative to build the Silk Road Economic Belt and integration processes in the Eurasian space go together? I believe that the Silk Road Economic Belt initiative proposed by Chinese President Xi Jinping and the EEU can work well together. Both are focused on the expansion and deepening of economic ties between member countries. To this end, well-developed infrastructure is needed. And it is Kazakhstan situated in the heart of Eurasia that will play an important role in the development and implementation of the Silk Road Economic Belt initiative. Your country can become a bridge in this process as President Nursultan Nazarbayev ordered to build a transport hub in Kazakhstan. Thank you!