Chinese investments in Tajikistan surpass US$5 billion

Asia-Plus

From 2007 to the beginning of the second quarter of this year, China has invested US$5.1 billion in Tajikistan’s economy, Sadoi Mardum, a mouthpiece of Tajikistan’s parliament, reported, citing Sulton Rahimzoda, Chairman of the State Committee on Investment and State-owned Property Management (GosKomInvest) of Tajikistan.

Speaking during the parliamentary ratification of the Tajik-Chinese Agreement on the Mutual Promotion and Protection of Investments, Rahimzoda reportedly stated that approximately US$2.9 billion—57.4% of the total—are direct investments, while the remaining US$2.2 billion (42.6%) fall under other investment categories.

Chinese capital has been directed primarily toward the mining and processing industries, geological exploration, light industry, telecommunications, construction, equipment installation, and other sectors.

Currently, more than 700 companies with participation of Chinese capital are operating in Tajikistan.

The government-to-government agreement between Tajikistan and China on investment protection was signed on June 5, 2024, following high-level bilateral talks in Dushanbe.  The agreement will remain in force for 15 years and is designed to safeguard investor interests and enhance the legal framework for economic cooperation.

China began significantly investing in Tajikistan in the mid-2000s and has since become the country’s leading foreign investor.

It is to be noted that China has been ramping up investments in green development and industrial digitalization in Central Asian countries in recent years.  China Media Group reported on June 18 that China's cumulative investment in Central Asia has exceeded US$30 billion.  The 2nd China-Central Asia Summit took place in Kazakhstan’s capital, Astana, on June 16-18.

China stands as a major source of investment for Central Asia’s nations. In recent years, it has significantly accelerated cooperation with Central Asian countries in areas such as 5G, the Internet of Things, and smart city construction.  Besides, China has carried out numerous clean energy projects, including wind turbines, solar panels, hydropower generators, and energy storage facilities, actively driving the transformation and upgrading of traditional industries in Central Asia.

To shore up their trade and investment ties, China has taken significant steps in institutional cooperation.  New investment agreements have been successfully concluded with Kazakhstan and Tajikistan, while negotiations on service trade and investment agreements with Kyrgyzstan have been launched, according to China Media Group.

 

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