No direct competition between China and Russia for Central Asia, analysts say

China's economic influence in Central Asia has grown as it overtook Russia to become the region's largest trading partner, but this does not necessarily put both superpowers in direct competition to woo their neighbours, analysts said.

- Aw Cheng Wei China Correspondent

A freight train loaded with cargo containers near the railway station of Dostyk at the Kazakh-Chinese border on Nov 19. China's Commerce Ministry said on Jan 18 that two-way trade between China and Central Asia hit US$106.3 billion (S$136.5 billion) in 2025. Chinese exports to the region, including electric vehicles and photovoltaic products, have expanded steadily, the authorities said.

(AFP)

That is because Central Asia - an inland region that sits west of China and south of Russia - imports different products from both its neighbours and works with them in separate ways, they added.

Dr Zhou Mi, senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, told The Straits Times that "exports from Russia and China to Central Asia help the region's growth in different ways, with both countries having the space to carve out their own niches".

He pointed out that "China's exports, including tech products, are suitable for Central Asia's current growth stage and can satisfy the region's demand to grow its energy, automobile and logistics sectors".

He added: "Working with China also makes a lot of sense for Central Asia because of China's large domestic market and purchasing power."

Professor Wang Yiwei at Beijing's Renmin University told ST that "Central Asia's growing economy would mean that countries in the bloc would seek more varied products for its growth".

"Central Asia, being an inland region, is also likely to turn to China, the world's factory and one of its closest neighbours, for imports to help with its growth," he added.

Prof Wang said that China's trade relationship with Central Asia is complementary, given that China imports oil and natural gas as well as agricultural produce from Central Asia for its own economic growth.