By Tristan Kenderdine
April 16, 2018, the CACI Analyst
Following high-profile visits by Premier Li Keqiang in 2015 and Xi Jinping in 2016, China’s is domestically devolving its trade and industrial relationship with Uzbekistan to provincial and prefectural levels of government. However, financing for China’s investment in Uzbekistan remains either directly invested or indirectly coordinated by one of China’s three central policy banks, Export-Import Bank of China, China Development Bank, and the Agricultural Development Bank of China. Since 2014, the Exim Bank has committed to fund Belt and Road projects worth around US$ 120 billion, which corresponds to nearly a full year’s GDP for Uzbekistan. These quasi-sovereign wealth funds certainly pose a systemic debt risk, but are not necessarily a debt-trap.
By Stephen Blank
April 12, 2018, the CACI Analyst
During January and February, several reports surfaced of a new Chinese military base in Afghanistan’s Wakhan corridor. According to Afghan officials, China and Kabul discuss building a base in Badakhshan and China will send an expert delegation to Kabul to determine the exact site, and will fund the base and all of its material and technical expenses, including weapons and equipment. China has denied these reports as they contradict its long-standing position that it is not seeking foreign bases or intends to intervene militarily in Central Asia. However, witnesses have reported seeing Chinese and Afghan troops on joint patrols. Moreover, there is a long record of signs of a growing Chinese military interest in Central Asia.
The Central Asia-Caucasus Analyst is a biweekly publication of the Central Asia-Caucasus Institute & Silk Road Studies Program, a Joint Transatlantic Research and Policy Center affiliated with the American Foreign Policy Council, Washington DC., and the Institute for Security and Development Policy, Stockholm. For 15 years, the Analyst has brought cutting edge analysis of the region geared toward a practitioner audience.