China Overtakes Russia As Central Asia's Top Foreign Investor

RFE
10 Jun 2026, 00:22 GMT+10

China has surpassed Russia as the biggest direct foreign investor in Central Asia, a resource-rich region that has long been in Moscows sphere of influence but is being increasingly courted by Beijing, according to data from the Eurasian Development Bank (EDB).

Chinas cumulative direct investment in Central Asia over the past decade exceeded $35 billion in 2025, the EDB said in areportpublished in December. Founded in 2006 by Russia and Kazakhstan, the bank promotes trade and economic integration among seven former Soviet republics.

During a regional summit in October, Russian President Vladimir PutinsaidMoscows cumulative direct investment in Central Asia, in comparison, was around $20 billion, a figure he admitted was rather modest.

Moscows investment in Central Asia has dropped since 2022, driven by the economic toll of its full-scale invasion of Ukraine and subsequent Western sanctions. In that time, China has expanded its economic footprint in the region.

Focus On Energy

China, the worlds largest energy importer, has invested heavily in Central Asias oil and gas sector even as it expands its investments in clean energy, mining processing, and transit infrastructure in the region.

Kazakhstan and Uzbekistan, Central Asias two biggest economies, and energy-rich Turkmenistan have been the main recipients of Chinese investment. The three countries account for about 90 percent of total Chinese capital invested in the region, according to the EDB.

Former Turkmen president Gurbanguly Berdymukhamedov (right) and Chinese Vice Premier Ding Xuexiang applaud during a ceremony launching the fourth of seven planned development phases at the Galkynysh gas field, some 400 kilometers east of Ashgabat. (file photo)

Beijing's largest projects include the state-run China National Petroleum Corporations $9.4 billion investment in developing Turkmenistans Bagtyyarlyk oil field. Another Chinese state-run company, Sinopec, has invested $2.1 billion in Kazakhstans Aqtobe oil field. China Energy, a government-owned company, has invested some $2 billion in new solar power plants in Uzbekistan.

Chinas investments in Uzbekistan have surged from $2.1 billion to $10.7 billion over the last five years, outpacing all other countries in Central Asia.

Uzbekistans economy is largely based on the export of natural resources, including gold and strategic minerals, as well as agriculture.

Russia Remains A Key Player

Experts say Russia remains an important economic and strategic partner for Central Asia, despite Chinas growing investment in the region.

They point to Central Asias reliance on transit routes through Russia and the millions of migrant workers employed in the country.

Almost every household in rural Tajikistan and Kyrgyzstan, and perhaps to a lesser degree in other Central Asian countries, depends on remittances from Russia, said a university professor in Tajikistans northern city of Khujand, who spoke to RFE/RL on condition of anonymity for fear of retribution.

Moscow remains an important power regardless of its level of financial investment, the professor added.

Chinese President Xi Jinping (left) and his Kyrgyz counterpart, Sadyr Japarov, walk past honor guards as part of a welcome ceremony during the latter's visit to Beijing in February 2025.

Zhanibek Arynov, an international relations expert in Kazakhstan, said the notion of competition between Russia and China in Central Asia is often overstated. Instead, he said, Central Asian countries are attracting investment in their strategic sectors from both countries.