BAKU, Azerbaijan, June 8. Economic cooperation between Kazakhstan and China continues to develop dynamically. In early June, the Chief Executive of the Hong Kong Special Administrative Region of the People's Republic of China made a historic first-ever visit to Kazakhstan. John Lee arrived with a massive delegation comprising 75 officials and entrepreneurs representing a wide spectrum of industries, including logistics, green energy, mining, innovation, technology, and education.
Today, particular emphasis in bilateral relations is placed on industrial cooperation, investments, and joint infrastructure projects. Over the past 20 years, Kazakhstan has attracted more than $445 billion in foreign direct investment, including about $30 billion from China. Meanwhile, the volume of investment from Hong Kong into the republic's economy reached nearly $740 million. A representative office of the Hong Kong Trade Development Council (HKTDC) is already operating in Almaty, actively contributing to the strengthening of business ties between the business communities of the two countries.
By the end of last year, trade turnover between the countries reached a record $48.7 billion. China also became Kazakhstan's largest trading partner in the first quarter of 2026: the volume of mutual trade amounted to $7.8 billion, which corresponds to 23.8% of the republic's total foreign trade turnover. Compared to the same period last year, the figure grew by 30%.
Astana seeks to utilize cooperation with Beijing not only to expand foreign trade but also to develop industry, modernize transport infrastructure, and attract investment. The localization of manufacturing facilities within Kazakhstan is gaining increasing importance.
Among the latest major projects is the construction of a metallurgical complex in the western part of the country. In April 2026, plans were announced for Fujian Hengwang Investment to invest $1.2 billion in creating a modern metallurgical enterprise in Kazakhstan's Zhambyl. The project's implementation will take place in two stages—by 2027 and 2029. Upon reaching full capacity, the plant will be able to produce up to 3 million tons of steel annually.
In the energy sector, JSC NC KazMunayGas and CITIC Construction reached an agreement on cooperation for the construction of the Karachaganak gas processing plant.
Another significant project was the launch of the construction of a urea production plant. Kazakhstan's national oil and gas company, KazMunayGas (KMG), and China National Petroleum Corporation (CNPC) have begun implementing this urea (carbamide) production project in the Aktobe Region. The enterprise is planned to be located near the Zhanazhol gas processing plant, which will provide the project's raw material base—up to 600 million cubic meters of commercial gas per year. The future plant's design capacity will reach up to 800,000 tons of urea annually, and the total investment volume is estimated at $1.25 billion.
An additional impetus to cooperation was provided by the recent visit of the Hong Kong delegation to Astana, following which the parties signed 42 agreements in various areas of interaction.
In parallel, the export of Kazakh products to China is developing. In January–March 2026, its volume reached $3.5 billion, which is 45.8% more than a year earlier, when the figure stood at $2.4 billion. The agro-industrial complex is playing an increasingly vital role in the structure of supplies. In particular, Kazakhstan has strengthened its position as one of the leading suppliers of sunflower oil to the Chinese market, securing local producers access to a massive consumer base and contributing to the growth of non-commodity exports. Following the results of 2025, the republic ranked sixth in the world for sunflower oil exports and second among suppliers of this product to China.
Additional opportunities for cooperation are also opening up in the financial sphere. One of the most promising instruments is the issuance of so-called "panda bonds," allowing Kazakh issuers to raise financing on the Chinese debt market and diversify capital sources.
On June 1, a grand ceremony marking the listing of the debut issuance of the Republic of Kazakhstan's sovereign panda bonds took place on the AIX Exchange platform. By placing securities worth 3.4 billion yuan with a yield of 1.9%, Kazakhstan set a record, achieving the lowest placement rate among BBB-rated countries and matching performance levels comparable to states with an AA rating.
Connecting to this financial infrastructure opens new avenues for attracting Chinese capital, expands the access of Kazakh investors to one of the world's largest debt markets, and fosters further integration of the financial systems of Kazakhstan and China.
At the same time, sustainable economic development requires maintaining a balance in foreign economic policy. China's high share in Kazakhstan's foreign trade objectively strengthens the interdependence of the two countries, which is why diversification issues remain highly relevant. Any changes in the economic environment of the PRC can reverberate across adjacent markets and trade flows in the region.
This is precisely why Kazakhstan is simultaneously expanding cooperation with the European Union, Central Asian states, Türkiye, and Middle Eastern countries. This approach allows for the mitigation of risks associated with excessive concentration in a single direction and helps form a more resilient system of international economic ties.
Special attention is paid to supporting domestic business in the face of competition with large foreign manufacturers. Concurrently, the development of the Trans-Caspian International Transport Route continues. This route plays a crucial role in delivering goods between China and Europe while maintaining its multilateral character and attracting investments not only from China but also from Europe, Türkiye, and other countries.
Overall, the development of relations between Kazakhstan and China demonstrates a transition toward a deeper and more comprehensive format of interaction. Utilizing the advantages of its geographical position and the investment potential of the neighboring country, Kazakhstan aims to strengthen its industrial base, develop logistics infrastructure, and simultaneously preserve the multi-vector character of its economic policy.
