In 2018, Crude Accountability launched a new research project to monitor Chinese investment in the oil and gas sector of Central Asia and to monitor Chinese financial institutions in the region.
China has become one of the key economic forces in the global economy and in international relations. In an effort to increase its economic potential, China is increasingly drawn into
At present, China imports oil and gas from over 30 countries and also participates in the development of overseas oil fields using Chinese technology and capital. China is looking at Central Asia as a strategic source of raw materials as well as a transit route to the
In the 2010s, China officially declared “The Silk Road Economic Belt” (SREB) strategy to include:
–obtaining access to resource potential by participating in the development of oil and gas fields and other natural resources, as well as the import of electro-energy;
–deepening trade and moving Chinese goods;
–active participation in the development of new trans-continental transportation corridors across Central Asia.
Chinese financial institutions will finance the capital investments into massive infrastructure projects of the SREB. The major financial players in the project are The Silk Road Fund (SRF) and the Asian Infrastructure Investment Bank (AIIB). A number of specialists see the AIIB as a competitor of the IFC, the World Bank, and the Asian Bank for Development in Eastern and South Asia.
Chinese investment in Central Asia is primarily focused on infrastructure and does not include the development of real sectors of the economy. About 90% of exports from Central Asia to China are fuel and raw materials. Vast financial resources allow China to aggressively buy up natural resources of Central Asia.
It is clear that in the future, China will only increase its overall involvement in the countries of the region. Central Asia, and primarily Kazakhstan, Turkmenistan, and Uzbekistan, represent a strategic interest