Do we fear credit dependence on China for the sake of a new railroad?

22.07.2024

The PRC, Kyrgyzstan and Uzbekistan are preparing to launch the construction of a railroad that will connect the three countries. The construction of the highway, which will cost $4.7 billion, is planned to be completed in six years. About 15 million tons of cargo can be transported along it annually. Beijing will allocate half of the sum, while Tashkent and Bishkek - a quarter each. This railroad may become a part of the Middle Way - a route from China to Europe bypassing Russia. However, it is not excluded that the credit dependence of the participating states on China will increase. For example, it is actively discussed that Kyrgyzstan has no money of its own to participate in the project.

For China, this railroad will open new ways to enter the markets of Europe, South Asia and the Middle East, improving its interaction with Central Asian states. For Uzbekistan and Kyrgyzstan, it will help them break out of their transport isolation and develop their transit potential