China has been strengthening ties with Central Asian nations with the aim to secure access to the region’s energy resources — oil, natural gas, coal, uranium, and renewable energy sources. China needs these energy resources for accelerated economic development in its northwestern Xinjiang Uygur Autonomous Region, which borders Central Asian countries. This is one of the conclusions of a new report released by the Eurasian Development Bank (EDB), titled “Infrastructure in Eurasia: Short-Term and Medium-Term Trends”.
Central Asia accounts for 80% of trade with the Xinjiang Uygur Autonomous Region, the report says.
At the same time, Central Asian countries seek external investment to develop their oil and gas resources. They are also focusing on expanding energy generation at combined heat and power plants, hydropower plants, and renewable energy plants (wind and solar). They also need to modernize existing and construct new power transmission lines, including those crossing borders.
The EDB report estimates that energy initiatives account for 52% of China’s cumulative FDI in Central Asia.
The report highlights ten significant trends in the Eurasian region’s energy, transportation, logistics, water supply, and telecommunications sectors. The report primarily focuses on Central Asia, which is experiencing increased attention from major political and economic players.
