China’s attempt to export its industrial capacity to overseas countries has recorded another success on March 27 with landmark deals worth $23.6 billion being signed with resource-rich Kazakhstan to help restructure the Central Asian country’s economy.
Premier Li Keqiang and visiting Kazakh Prime Minster Karim Masimov agreed on wide-ranging industrial cooperation after holding talks in Beijing, including the construction of highways, urban rails, hydro-power plants, wind power plants and other infrastructure facilities, in addition to commercial deals on automobile and elevation manufacturing.
Deals signed on March 27 are the first part being harvested from a preliminary consensus of exporting China’s advanced industrial capacity to the oil-dependent Central Asian economy that the two leaders have agreed to during Li’s visit to Kazakhstan in December.
“We sowed the seeds in Kazakhstan in winter and now the seeds have thrived,” Li said during the meeting with Masimov, referring to preliminary consensus.
Premier Li said he hopes China’s industrial cooperation with Kazakh will become the a “showcase for similar cooperation with other countries”.
Masimov, accompanied with his investment minster, energy minister and corporate leaders, said the initial success being yielded now signals a bright outlook on future cooperation.
Kazakhstan is China’s second largest trade partner in the Commonwealth of the Independent States and China’s first investment destination in Eurasia, while China is the second largest trade partner and the largest export market of Kazakhstan. But the Central Asian country has been struggling to deal with falling oil prices and a weakened ruble, which has lead to an increase of Russian products import in the domestic market.
Kazakh’s industrial cooperation with Beijing has added another entry on the list of China’s industrial capacity export.
Also on March 27, Li encouraged Chinese enterprises, either State-owned or private, to invest in Indonesia, especially in railways, port industries and other infrastructure construction after meeting the visiting Indonesia President Joko Widodo.
Premier Li said the export of China’s advanced capacity is a good match with Indonesia’s need to upgrade infrastructure and industrial restructuring, and the large population of Indonesia — about 200 million — is a huge market to explore for Chinese businesses.
Premier Li also met with Swedish Prime Minister Stefan Lofven on March 27. The Premier and Lofven attended the unveiling ceremony marking the 65th anniversary of China-Sweden diplomatic relations, and signed two commemorative envelopes.