11.02.2019-17.02.2019 • No: 198

CHINA’S AIR SILK ROAD INITIATIVE: ROLE OF UYGUR AUTONOMOUS REGION The recent aggravation of geopolitical, geo- infrastructure of the -Pakistan Eco- and 6.6%, respectively, compared to the pre- economic and military confrontations on the nomic Corridor (CPEC), start in , as vious year. By 2025, it is expected that the global and regional scales along with the in- well. In addition, the China-Kyrgyzstan-Uz- annual turnover of passengers and cargo of creased global and regional economic crises bekistan railway connecting China with the Kashgar International Airport will reach have negatively affected China’s economy, Central Asia is also planned to start in Kash- 5 million and 60,000 tons, respectively. which had a high growth rate for many gar, pass through the Irkeshtam border In addition to expanding the Kashgar Inter- years, leading to a decrease in Chinese ex- crossing between China and Kyrgyzstan and national Airport, , which aims to ports and the flow of foreign investments to reach via Kyrgyzstan’s Kara-Su district Uz- make the Kashgar Prefecture where the air- the country. Therefore, meeting China’s bekistan’s Andijan city. The fact that Kash- port is located the center of all the XUAR air growing demand for energy and ensuring gar, which is of great importance both for transportation, has decided to build new air- access to foreign markets are among the the economic development of the XUAR ports at the prefecture’s cities of Yarkent, most important issues of concern for Bei- and for the international economic and and Tomshuk from 2014 on- jing. transport corridors of China, is prominent in wards. The Yarkent Airport, the construc- In order to solve the economic and strategic the Air Silk Road initiative is certainly due tion of which required a total investment of problems faced by China, Beijing felt the to its special geographical advantage. Lo- 601 million yuan (about $89.70 million), need to develop new strategies of geoeco- cated at the intersection of the middle and was launched in November 2017. The Tum- nomic and geopolitical importance. In this southern routes of the ancient Silk Road, shuk Tangwangcheng Airport, the construc- context, in 2013, the Chinese government Kashgar is now a major transit hub between tion of which cost 631 million yuan (about launched the Belt and Road Initiative (BRI) China and Central Asia, South Asia and $94.18 million), started service in December that includes the Silk Road Economic Belt West Asia. 2018. With the construction of the new air- and the 21st Century Maritime Silk Road Based on the idea of creating the Air Silk ports, the Kashgar Prefecture has become strategies. The main objective of the initia- Road through Kashgar under the BRI, the the prefecture with the highest number of tive is to ensure China’s access to natural re- plan for the Kashgar Airport Economic airports in the XUAR. sources and foreign markets, maintaining Zone was brought up to the agenda in 2014. While the importance of Kashgar in China’s stable economic growth and achieving a fa- In accordance with the long-term develop- Air Silk Road initiative is increasing day by vorable balance in foreign policy. In addi- ment plan consisting of three main stages tion, China sets a goal to increase its soft (2015-2025, 2026-2035, 2036-2050), the day, the XUAR’s entire air transportation power by strengthening its economic and Kashgar Airport Economic Zone with an infrastructure is also given particular atten- political influence at the regional and global area of 83.3 square kilometers is expected to tion. For example, according to China’s levels. Under the BRI, Beijing aims to pro- operate in eight main sectors such as the tra- 13th Five-Year Development Plan, a total of mote trade in goods and services between ditional aviation industry, air transportation, 51 billion yuan (about $7.61 billion) is China and South Asia, Central Asia, Middle air tourism, aviation security, civil aviation, planned to be invested in Xinjiang’s air East, West Asia, Africa and Europe via both air trade, aerospace technology and aviation transportation infrastructure between 2016 land and sea. Moreover, China also puts par- exhibitions. The establishment of the Kash- and 2020. In 2017, a total of 14.4 billion ticular emphasis on air transportation and gar Airport Economic Zone has positively yuan (about $2.15 billion) was invested in strives to form the Air Silk Road. contributed to the formation of the Air Silk the airport projects of the XUAR. In 2018, The special geographical location of the Road via Kashgar. 42.11 billion yuan (about $6.29 billion) was Xinjiang Uyghur Autonomous Region In addition, by launching direct flights to invested in the project of developing the (XUAR), which is situated in the northwest Kashgar from large cities of China such as Urumqi International Airport alone. Cur- of the country and shares borders with eight Beijing, Shanghai, Guangzhou and Zheng- rently, there are a total of 21 airports operat- countries, plays an important role in China’s zhou, as well as Hong Kong and a number ing in the XUAR, six of which are undergo- Air Silk Road initiative. In this context, of countries, important steps have been ing expansion and renewal projects. Nine China, in particular, aims to transform the taken to establish the Air Silk Road via new airports are under construction, and the city of Kashgar in the XUAR into the re- Kashgar. For example, direct flights to total number of airports in Xinjiang is ex- gion’s international logistics center in terms Kashgar were first opened from Pakistan’s pected to reach 33 by 2025. With these fig- of air transportation. There are several rea- capital Islamabad in August 2013, then from ures, the XUAR will become the region with sons why China prioritizes Kashgar in its Sharjah, the UAE’s third largest city, in De- the highest number of airports in China. Air Silk Road initiative. First of all, Kashgar cember 2015, and from Bishkek, the capital In brief, it can be said that the XUAR is of has an important place in China’s policy of of Kyrgyzstan, in September 2016. great importance and will continue to play a the XUAR’s economic development. Thus, Since 2013, the Kashgar International Air- substantial role in the Air Silk Road initia- since 2009, Beijing has been heavily invest- port’s infrastructure facilities had constantly tive, in which China has been investing great ing in the transportation infrastructure of been upgraded, and in 2017 it underwent an efforts in recent years. At the same time, Horgos in northern Xinjiang and Kashgar in expansion project that cost more than 3.5 there is no doubt that the significant funds southern Xinjiang to support the foreign billion yuan (about $552.39 million). Due to that Beijing has invested in the XUAR’s air trade based economic development of the these developments, the Kashgar Interna- transportation infrastructure under the Air XUAR. The establishment of the Kashgar tional Airport has become the second largest Silk Road initiative will have a positive im- Special Economic Zone after 2010 and the airport in the XUAR. For example, in 2013, pact on the economic and social develop- development of national and international the Kashgar International Airport had an an- ment of the region. However, in the last few highway and railway networks connected to nual passenger turnover of 1.15 million and years, Beijing has begun to take rigorous Kashgar, along with the renovation of the an annual cargo turnover of 6,281 tons, in measures to ensure security and stability in basic infrastructure of the Kashgar Interna- 2015 – 1.73 million and 6,655 tons, respec- the XUAR, which may adversely affect air tional Airport, have created a positive envi- tively, while in 2017 the number of passen- transportation in the region. For this reason, ronment for Kashgar to turn into an im- gers per year reached 2.05 million and the in order to make the XUAR’s role in the Air portant center of air transportation. On the volume of cargo hit 7,718 tons. In 2018, the Silk Road initiative even more effective, other hand, the highway and railway pro- Kashgar International Airport’s annual turn- China should give importance to improving jects stretching from Xinjiang to Pakistan’s over of passengers and cargo equaled 2.06 the increasingly deteriorating social and Gwadar port, which form the transportation million and 8,225 tons, increasing by 0.6% economic situation of the region.

Written by Omirbek Hanayi, Eurasian Research Institute, Kazakhstan

Politics, Foreign Affairs, and Security Economy, Finance, and Energy Society and Culture • The National Assembly of Azerbaijan • During the Turkmen-German business • Under the UN Recovery and Peace- approved the ratification of the Conven- forum held in Berlin, the parties dis- building Program, the governments of tion on the Legal Status of the Caspian cussed issues related to increasing and Denmark, Sweden and Switzerland will Sea signed in August 2018. Along with diversifying trade and economic rela- allocate $14 million in aid to the con- the convention, legislators endorsed a tions between the two countries, includ- flict-affected areas of eastern Ukraine. number of documents related to cooper- ing the Trans-Caspian gas pipeline pro- The initiative is aimed at strengthening ject. Representatives of Turkmenistan good governance in the Donetsk and ation with other littoral states, including provided their German partners with Luhansk regions and promoting human on transport, trade and economic coop- comprehensive information on existing rights, job creation, poverty alleviation, eration, incident prevention, and investment opportunities and presented anti-corruption measures, law enforce- fighting organized crime and terrorism. an exhibition of Turkmen products. ment and judicial reform. • During his three-day working visit to • The agriculture ministries of Kazakh- • A total of 61,800 people visited the 26th Russia, President of Belarus Alexander stan, Russia and Iran signed a memoran- Minsk International Book Fair which Lukashenko held negotiations with dum of understanding on cooperation in was held under the slogan “More than Russian President Vladimir Putin in So- wheat trade. According to the docu- Books”. During the five-day event orga- chi on key issues of bilateral relations ment, which is an integral part of the nized jointly by the Information Minis- and prospects of the Eurasian integra- free trade zone agreement signed be- try of Belarus, the Minsk City Hall and tion. The two leaders discussed the en- tween the EEU member states and Iran the Belarusian Union of Writers, 441 tire spectrum of mutual cooperation in 2018, Iran will facilitate the freedom participants from 37 countries show- from economy, finance, industry and of transit of Kazakh and Russian wheat cased new publications, shared their ex- agriculture to science, education, cul- through its territory and support imports periences and discussed the problems of ture and sports. of wheat under swap contracts. the book industry. • Presidents of Iran, Russia and Turkey • The volume of trade between Kazakh- • The Uzbek Ministry of Higher and Sec- Hassan Rouhani, Vladimir Putin and stan and Russia in 2018 amounted to ondary Specialized Education and the Recep Tayyip Erdogan met in Sochi for $17.55 billion, increasing by 7.2% com- U.S.-based Webster University signed their fourth trilateral summit to address pared with 2017. The Kazakh exports to an agreements on the opening of this the political settlement in Syria. The Russia grew by 11.3%, reaching $5.16 university’s branch in Uzbekistan. The billion, while the Russian imports to branch will offer both undergraduate parties focused on the formation of the Kazakhstan was worth $12.39 billion, and graduate programs in business ad- Syrian constitutional committee, the going up by 5.6%. Russia remains Ka- ministration, marketing and entrepre- planned withdrawal of U.S. troops from zakhstan’s major trading partner ac- neurship, computer science, journalism Syria, and the situation in the country’s counting for 18.8% of the country’s to- and the media industry, healthcare man- north-eastern part and Idlib province. tal trade turnover. agement, STEM education and innova- • The working group made of representa- • Azerbaijan’s foreign trade turnover in tion, and other areas of study. tives of the defense ministries of Ka- 2018 amounted to $31.8 billion, includ- • The UN Industrial Development Organ- zakhstan, Kyrgyzstan, Russia, and Ta- ing $20.3 billion of exports and $11.5 ization and the Ministry of Agriculture jikistan, the CSTO Joint Staff, and rele- billion of imports. The goods produced and Environmental Protection of Turk- vant CSTO military research organiza- in the country were exported to 113 menistan implement a joint project on a tions met in Dushanbe to discuss the countries, with Italy (30.2% of the total phased reduction of ozone-depleting creation of a unified air defense system value), Turkey (9.4%) and Israel (6.7%) substances in the country. Under the in the Central Asian region. The meet- being the major recipients. 178 coun- project, they organized a seminar to fa- ing participants found it advisable to tries led by Russia (16.4%), Turkey miliarize Turkmen customs officials recommend continuing joint work on (13.8%) and China (10.4%) imported with international agreements and na- this issue. their goods to Azerbaijan. tional legislation on the protection of • The delegation of ’s Ministry • In 2018, Tajikistan attracted $645 mil- the ozone layer. of Defense visited Minsk to discuss lion of foreign investment, of which • The UN Office in Azerbaijan and the with their Belarusian counterparts pro- about $326 million was foreign direct nongovernmental organization Arts investment. In general, 69 investment Council Azerbaijan, with support of the spects for developing military and mili- country’s Ministry of Culture, launched tary-technical cooperation within the projects worth $3.23 billion are cur- rently implemented in the country, in- an initiative to create a UN Culture Park framework of the CSTO and in the bi- in Baku. As part of the project, artists lateral format. During the talks, the par- cluding those financed by the Asian De- velopment Bank, the World Bank, will paint metal barrels on the theme of ties also addressed the military-political Sustainable Development Goals and situation in the Central Asian region. China Eximbank, the European Bank create “green corners”, while represent- • The delegation of the Japanese Foreign for Reconstruction and Development, atives of diplomatic missions and inter- Ministry visited Ashgabat to hold polit- and the Islamic Development Bank. national organizations will plant trees. ical consultations with their Turkmen • According to the National Statistics • The 12th Conference on Pioneers of the colleagues. The parties discussed fur- Committee of Belarus, foreign investors Turkic World dedicated to Azerbaijani ther development of bilateral relations (excluding banks) invested $10.8 billion playwright and poet Jafar Jabbarli on in the political, trade, economic and hu- in the real sector of the country’s econ- the 120th anniversary of his birthday manitarian fields. Japan invested in a omy in 2018. The main investors were took place at the TURKSOY Headquar- business entities from Russia (38.3% of ters in Ankara. The conference, which number of projects in Turkmenistan, in- all investments), the United Kingdom cluding the construction of the ammonia brought together professional authors (25.7%), and Cyprus (7.8%). Belarusian and poets along with amateurs, featured and urea plants in the city of Mary, and entities invested $6.1 billion abroad, in- the industrial complexes for the produc- presentations on Jabbarli’s life and cluding Russia (68.2%), Ukraine work, as well as the reading of his po- tion of polyethylene, urea fertilizers and (16.5%), and the United Kingdom polypropylene in the Balkan region. ems. (6.7%). • As of January 1, 2019, Kazakhstan’s • Foreign Minister of Kazakhstan Beibut • Georgia and China signed an agreement population reached 18,395,700 people, Atamkulov met with ambassadors of the on technical and economic cooperation increasing by 238,600 people, or 1.3%, EU member states and the EU delega- that provides for the allocation of assis- year on year. 10,638,700 people, or tion in Astana. The parties considered tance in the amount of 100 million yuan 57.8%, of the total population, live in the current state and prospects of mutual (about $15 million). Funds will be spent the cities, while the rural population cooperation, including political, eco- on the purchase of inspection systems amounts to 7,757,000 people, or 42.2%. nomic and trade relations, with a special for Georgian customs checkpoints, In 2018, the number of arrivals to Ka- focus on the Enhanced Partnership and which will help enhance security and zakhstan decreased by 20.5%, while the Cooperation Agreement, which will accelerate customs control at the coun- number of departures increased by soon fully enter into force. try’s borders. 11.1%.

Prepared by Dauren Aben and Kanat Makhanov