This year marks 10 years since the launch of China's grandiose Belt and Road Initiative (BRI), the main goal of which is to promote a new model of cooperation between countries and different regions of the world.
The BRI promotes the idea of close mutual integration and interconnectedness of large international markets, which should ensure a more efficient exchange of trade, capital and technology for the sake of the development and well-being of all its participants.
The Initiative also largely affects Central Asia. Moreover, according to experts, today the countries of Central Asia are one of the main beneficiaries of this project.
By providing each other with their transport corridors and sales markets, as well as exchanging investments, resources and technologies, China and the countries of Central Asia are making joint efforts to ensure their sustainable development.
Largely thanks to this circumstance, our region, as the President of the Republic of Uzbekistan Shavkat Mirziyoyev rightly noted at the 5th Consultative Meeting of the Heads of State of Central Asia in Dushanbe, “Central Asia is becoming one of the important centers of economic growth and investment activity, and once again regaining its historical role as a transport hub connecting the West with the East and the North with the South”.
As a result, over the past six years, the trade turnover between the Central Asian countries has increased by more than 2.5 times, the volume of mutual investments by 6 times, and the inflow of foreign direct investment by 45%. The number of joint ventures has increased 5 times, and the indicators of intraregional tourism have increased almost 2 times.
It should be emphasized that in 2022, the total volume of foreign trade in the region increased to $220 billion, almost doubling the level of 2017, which was only $126 billion.
At the same time, the GDP of the countries of the region is steadily growing, which by the end of 2022 has collectively approached $400 billion, which is 40% more than in 2016.
Of course, the active interaction of the Central Asian countries within the framework of the BRI projects and the strengthening of cooperation with China have played an important role in stimulating the positive development of this region.
The summit of the Heads of State of the Central Asian countries and the People's Republic of China, held in Xi'an on May 18-19 this year, reaffirmed the commitment of the parties to actively increase cooperation within the framework of the BRI.
The Xi'an Declaration, other important documents adopted and the planned projects determined the future contours of the development of bilateral and multilateral cooperation between the countries of Central Asia and China.
At the same time, it should be noted that today, in a difficult situation in the world, optimization of development and deepening of key areas, as well as the successful implementation of planned projects, become important priorities of cooperation.
In this context, the interaction between the Central Asian countries and China in the digital field becomes especially important, that is, the use of new generation technologies such as artificial intelligence (AI), blockchain, big data, chips and cloud computing to create a digital platform for cooperation.
Noteworthy in this direction is the joint development of the Digital Silk Road, which is a component of the Belt and Road project.
While the main focus of the BRI lies in the development of physical infrastructure, such as highways, railways and ports, the Digital Silk Road focuses primarily on the creation and expansion of digital infrastructure, as well as interaction in the field of information technology.
The Chinese government and companies from China are investing in the deployment of fiber-optic cables, 5G and cloud technologies, investing significant resources in the development of industrial Internet, artificial intelligence, blockchain, nanotechnology and smart cities.
Today, the People's Republic of China participates in digital infrastructure projects in about 80 countries and has already invested about $80 billion to Digital Silk Road projects all over the world.
The Central Asian countries are interested in cooperation within the framework of the Digital Silk Road, since, according to most authoritative experts, China has become a leader in this area.
For example, in terms of the number of high-tech parks on a global scale, China ranks first, there are more than 80 of them today.
It is noteworthy that more than 1,500 projects are being implemented in this area, covering more than 20 key sectors of the China economy.
According to the latest data, the volume of private investment in new technology startups in China amounted to $17.2 billion. (this figure in Japan is $6 billion, Korea – $1.1 billion, Singapore –$0.9 billion).
The design of “smart” cities has become a new trend in global urban planning. Thus, according to the British company Deloitte, more than 1 thousand Smart City projects are being implemented in the world today, of which 500 are located in China.
China actively cooperates with the countries of Central Asia to implement various projects within the framework of the Digital Silk Road. This includes the construction of cross-border cables and networks, satellite stations, data centers and other elements of digital infrastructure, as well as the exchange of technologies and knowledge in the field of digital technologies.
Today, Central Asia accounts for about 84 completed and planned projects of the Digital Silk Road. Of these, 30 are in Kazakhstan and 26 in Uzbekistan.
10 projects each are being implemented in Tajikistan and Kyrgyzstan, where attention is mainly paid to smart city projects and improving telecommunications networks. Turkmenistan is implementing 8 projects, mainly related to the laying of fiber–optic cables along the bottom of the Caspian Sea.
Such large Chinese companies as Huawei, China Mobile, China Telecom, ZTE, BeiDou, Alibaba, Hikvision, Dahua and others are involved in regional projects.
Today, the development of digital technologies is one of the most important areas contributing to the sustainable growth of the economy of Uzbekistan. Similar approaches are observed in other States of the region.
At the Xi'an Summit, President of Uzbekistan Shavkat Mirziyoyev especially noted that issues of deepening industrial cooperation, attracting digital technologies and introducing innovations can be effectively resolved through direct interregional contacts with the provinces of China.
In order to achieve practical results in this direction, the Head of Uzbekistan proposed to hold a Forum and exhibition of cities and regions of our countries in Uzbekistan this year to establish practical cooperation, strengthen twinning and partnership relations.
In turn, President of the People's Republic of China emphasized that the Chinese side welcomes the accession of Central Asian states to targeted cooperation programs within the framework of the Belt and Road Initiative in the field of sustainable development technologies, innovation, entrepreneurship and digital platforms.
The use of intelligent systems is changing the business practices of industrial companies and can significantly increase production efficiency in all areas of the economy.
Because of this, China's experience in applying such technologies is of significant interest in Central Asian countries.
Therefore, it is most important to strengthen cooperation between Central Asian countries and China in the following areas:
- promoting the development of digital infrastructure, including the construction and modernization of communication, data and Internet networks, in order to accelerate the process of digital transformation of the region;
- creation of joint digital platforms within the framework of the Digital Silk Road Initiative;
- close cooperation on the basis of IT-parks in China and Central Asian countries;
- implementation of cloud technologies and big data analysis, including the deployment and use of cloud platforms and data centers;
- development of e-commerce, strengthening the foundations of e-commerce operations and creating platforms to improve international trade;
- development of artificial intelligence technologies and promotion of innovation;
- ensuring security and data management, including the protection of networks and data, as well as the effective management of digital assets and information.
According to experts, the introduction of advanced technologies can lead to unique changes in various industries, including a 20-30% increase in productivity, an 80% reduction in road accidents, a 30% reduction in medical costs and a 15% increase in agricultural yields.
China's desire to continue an active digital policy with the BRI member countries is a key factor in the revival of the global digital economy. The second decade of this Initiative will continue to support its dynamic, balanced and mutually beneficial nature, contributing to the overall digital transformation.
Therefore, the upcoming third Belt and Road International Forum will undoubtedly provide an opportunity to comprehensively evaluate the ten-year journey of this ambitious project and outline the prospects for its future in the digital age, creating harmonious prospects for large-scale development.
Shavkat Alimbekov – Leading Researcher at the International Institute of Central Asia
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