China has become the largest investor in Kyrgyzstan’s industrial sector. Data from the Eurasian Development Bank (EDB) say.
According to the EDB, the bulk of Chinese investment is currently directed toward infrastructure and industry. Around $150 million has been allocated for the modernization of roads in Kyrgyzstan, while approximately $120 million has been invested in the construction and reconstruction of energy facilities, including 15 small and medium-sized hydropower plants. About $85 million has been invested in the mining sector.
A key strategic project remains the construction of China—Kyrgyzstan—Uzbekistan railway, which is being implemented with the participation of China Railway International. China holds a 51 percent stake in the project. Total Chinese investment is estimated at $3.5 billion, more than $2 billion of which is provided in the form of concessional loans.
Significant investments are also concentrated in the manufacturing sector. In the cement industry, the flagship enterprise is the Kant Cement Plant, controlled by the Chinese company Yatai, with an annual production capacity of over 1.2 million tons of cement. Investments in its development are estimated at around $100 million.
At the same time, EDB analysts note that the concentration of Chinese capital in key sectors of Kyrgyzstan’s industry may lead to the formation of quasi-monopolies and increased dependence on imported equipment and labor, which could potentially limit the development of local businesses in the long term.
