Trade and economic relations between the Republic of Tajikistan and the People's Republic of China reach the highest level

Article by the Minister of Economic Development and Trade of the Republic of Tajikistan Zavqizoda Zavqi Amin

Trade and economic relations between the Republic of Tajikistan and the People's Republic of China reach the highest level

Diplomatic relations between the Republic of Tajikistan and the People's Republic of China were established on January 4, 1992, and today China is one of the largest economic, trade and investment partners of Tajikistan. Further expansion of trade and economic relations with the People's Republic of China as one of the developed countries in the region is of particular importance for Tajikistan.

Thanks to the wise and far-sighted policy of the Leaders of the two countries, the President of the Republic of Tajikistan, His Excellency, esteemed Emomali Rahmon and the Chairman of the People's Republic of China, His Excellency, esteemed Xi Jinping trade and economic relations between the two countries are developing in all areas of mutual interest and cover all areas.

The close and friendly relationship between the Leaders of the two states is a fundamental guarantee of the active development of trade and economic cooperation between the Republic of Tajikistan and the PRC. During the state visit of the President of the Republic of Tajikistan, the Leader of the Nation His Excellency Emomali Rahmon to China in 2013, the heads of the two countries published the Joint Declaration of the Republic of Tajikistan and the People's Republic of China on the establishment of strategic partnership relations, which became a solid basis for the long-term and comprehensive development of Tajik-Chinese relations.

During the visit of the Chairman of the People's Republic of China, His Excellency Xi Jinping to Tajikistan in 2019, the heads of the two states jointly issued a joint statement in which they announced that Tajikistan and China will cooperate closely in all areas of bilateral cooperation, and will also promote linking the One Belt and One Road initiative with the National Development Strategy of the Republic of Tajikistan until 2030.

In recent years, our countries have signed a number of mutually beneficial documents on cooperation in the field of economy and trade, agriculture, finance, culture, tourism, etc., which contributed to the deepening of all-round pragmatic cooperation between the Republic of Tajikistan and China. As a result, the volume of bilateral trade has increased, areas of cooperation have expanded, and trade and economic cooperation between the two countries has entered a new stage of its development.

The dynamic development of trade and economic relations is based on bilateral Trade Agreements. In accordance with the signed documents, the parties are pursuing a policy of encouraging cross-border trade on a mutually beneficial basis, achieving a balance between exports and imports, diversifying the commodity structure of trade, interaction in the field of road transport and transit traffic, increasing the capacity of customs points, creating mutually favorable conditions for road and rail and air transportation.

The intergovernmental Tajik-Chinese Commission on Trade and Economics is successfully operating, where issues of building up and diversifying bilateral partnerships are discussed annually.

This is confirmed by the increase in the volume of bilateral trade. The highest level in mutual trade falls precisely on 2022, and this year the trade turnover reached a historical mark of $1.2 billion, of which exports amounted to $368 million and imports $842 million. Compared to 2013, the total volume of trade between our countries increased by 1.7 times, while exports increased by 6.3 times and imports by 1.4 times, respectively.

The share of mutual trade with China in the total volume of foreign trade turnover of our country increased from 13.9% in 2013 to 16.1% in 2022 , which can be interpreted as a sign of expanding economic cooperation between the two countries.

In terms of the volume of mutual trade in the total foreign trade turnover of the Republic of China, China ranks third, which indicates that China is one of the largest trading partners of Tajikistan.

Along with the increase in the above indicators, the balance of exports and imports also acquired a changing trend. If in 2013 the share of exports of goods in the total volume of bilateral trade was 8.5%, then in 2022 this figure reached 30.4%.

The main factor in the development of indicators in bilateral trade is the expansion of cooperation in the fields of industry, transport, energy, agriculture, science and technology, healthcare and tourism.

It should also be noted that China is the largest investor in the economy of Tajikistan and plays a prominent role in the implementation of the National Development Strategy and its main priorities.

Chinese investments in Tajikistan undoubtedly contribute to the development of the Tajik economy, the growth of the welfare of the population and, accordingly, the overall reduction in the level of poverty in the country.

Since 2003, the investment activity of Chinese companies has been gaining momentum, and further, after the implementation of worthy measures to support investors and reforms to improve the investment climate, the People's Republic of China becomes the largest investor in the economy of the Republic of Tajikistan.

Over the past 20 years, the People's Republic of China has increased the volume of foreign investment in the economy of the Republic of Tajikistan, and the share of the People's Republic of China in the total volume of foreign direct investment from 9% in 2004 has increased to 62% in 2021.

Consequently, during this period, the share of Chinese direct investment in the total amount of accumulated direct investment in the national economy amounted to 43%.

Over the past 30 years of Independence of the Republic of Tajikistan, the People's Republic of China has allocated grant funds for the implementation of major socio-economic and infrastructure projects in the country for a total of 760 million US dollars.

Currently, China supports the implementation of a number of investment projects in priority sectors of the Tajik economy. Among them are projects for the reconstruction and construction of roads, bridges and other necessary infrastructure, which help to reunite the entire regions of Tajikistan into a single whole, ensuring year-round movement of automobile and passenger transport. A number of important large-scale cooperation projects are also being implemented on a grant basis, such as the reconstruction of the Kalai Khumb-Rushon highway in the amount of 120 million US dollars , which is located on the international highway Dushanbe- Kulob - Kalai Khumb - Khorug - Kulma (border with China). The implementation of this project will help the entrepreneurs of both countries to transport goods and trade in goods, and thus expand bilateral trade. And also the construction of a new building of the Parliament and the complex of the Government of the Republic of Tajikistan is underway.

In addition, China is actively involved in the implementation of investment projects in the energy sector. Chinese investment in these sectors of the Tajik economy is a significant contribution of a key partner to achieving the strategic goals of ensuring energy independence and getting the country out of the communication impasse.

Chinese companies are involved in almost all major industrial and agricultural projects in Tajikistan, in particular, in the chemical and textile industries, building materials, agricultural processing, mining, and information communications. Only in recent years, 10 joint projects have been completed, including the construction of the Dushanbe-2 thermal power plant, the Chongtai - Dangara - Sinsilu Tekstil spinning mill, the Metallurgical Enterprise, the Huaksin Cement Plant Gayur-Sughd Cement, the Vahdat -Yavan railway tunnel, aluminum fluoride and cryolite production plants, and others.

5 free economic zones " Dangara ", "Pyanj", " Sughd ", " Ishkashim " "Kulyab" have been created in Tajikistan. Chinese investors are very active in the development of SEZs. In particular, Chinese investments are directed to the implementation of investment projects in the Dangara and Pyanj FEZs, where enterprises have been established for the production of metal structures and building materials, for the processing of petroleum products, cotton fiber, leather and wool, fruits and vegetables, based on local raw materials . and with the involvement of local labor resources.

Tajikistan is interested in creating industrial enterprises for the production of final products with the involvement of Chinese investments and production and technological experience, in implementing infrastructure projects, developing a green and digital economy, exporting Tajik products to Chinese markets, training Tajik specialists and attracting Chinese tourists to the country.

The existing huge economic and investment potential of the Republic of Tajikistan, a favorable investment climate, tax incentives and preferences, the functioning of free economic zones on the territory of the republic - all this opens up prospects for the implementation of joint investment projects in Tajikistan for Chinese and other investors.

It is gratifying that within the framework of the State visit of the President of the Republic of Tajikistan, the Leader of the Nation His Excellency Emomali Rahmon to the People's Republic of China, as well as within the framework of the Summit of China and the countries of Central Asia, about 30 joint documents will be signed, which will give an even greater impetus to the development of multilateral cooperation between the Republic of Tajikistan and the People's Republic of China.

In conclusion, I want to note that the Government of the Republic of Tajikistan highly appreciates friendly, strategic and good neighborly relations with the People's Republic of China and will continue to take all necessary measures to expand cooperation in trade , economic, investment, cultural and humanitarian spheres.