By Syed Fazl-e-Haider

China is moving forward with the long-delayed 523-kilometer railway connecting Kashgar in northwest China to Kyrgyzstan and Uzbekistan as part of its Belt and Road Initiative (BRI). The China-Kyrgyzstan-Uzbekistan (CKU) railway, proposed in the 1990s, officially began construction on December 27 in Jalalabad, Kyrgyzstan. This route offers a faster, cheaper alternative to existing connections between China and Europe via Kazakhstan and Russia.

Excluding Russia from the project has drawn criticism from Moscow, which views Central Asia as its sphere of influence. However, Russia, heavily reliant on China due to Western sanctions over its 2022 Ukraine invasion, is unable to oppose the development.

The CKU railway, seen as a regional game-changer, promises to enhance trade and connectivity across Central xAsia. However, it also raises security concerns, as the route may facilitate cross-border activities of drug traffickers, terrorist groups, and militant organizations.

BACKGROUND:  The CKU railway, first conceived in 1997, faced significant delays due to financial, political, technical, and geopolitical challenges. A major obstacle was political instability in Kyrgyzstan, which stalled progress for 15 years. The project was revitalized in 2012 following a visit to Beijing by then-Kyrgyz President Almazbek Atambayev, renewing momentum for this strategic initiative under China’s Belt and Road Initiative.

Geopolitical factors also contributed to delays in the CKU railway project. Kazakhstan and Russia opposed the new route connecting China to Europe, as they benefited significantly from the existing northern corridor via Russia, which generated substantial revenue. Concerns over losing this economic advantage fueled their resistance. Financing the mega-project was another major challenge. In 2023, reports emerged suggesting the CKU railway’s postponement for an indefinite period due to unresolved funding issues.

Technical complexities have also hindered the execution of the CKU railway project. A key issue is the incompatible railway gauges between China and Central Asian countries. While China uses a standard gauge of 1,435 mm, Kyrgyzstan and Uzbekistan rely on a broader gauge of 1,520 mm. This mismatch has posed significant logistical and engineering challenges to the project's implementation.

Another factor contributing to delays was the failure of participating countries to reach a consensus on the railway route due to conflicting interests. China and Uzbekistan favored a southern route, which offered shorter and faster transit to Europe. In contrast, Kyrgyzstan advocated for a northern route that, while longer and more expensive, would connect the north and south of Kyrgyzstan, fostering development and boosting its economy. Ultimately, under pressure from China and Uzbekistan, Kyrgyzstan conceded to the shorter and less costly southern route.

In May 2023, China and Kyrgyzstan reached an agreement to commence the CKU railway project during an official visit by the Kyrgyz President to Beijing, with the China Railway Construction Corporation completing a feasibility study the same year.

In June 2024, officials from China, Kyrgyzstan, and Uzbekistan signed a trilateral agreement to implement the project, establishing a robust legal framework for constructing the railway. The line will begin in Kashgar, Xinjiang, pass through Kyrgyzstan, and extend into Uzbekistan, with future plans for extensions to West and South Asia.

After nearly three decades of deliberation, the CKU rail corridor is now progressing. The project promises to reduce freight transit times by one week and shorten the China-Europe route by 900 kilometers, marking a significant milestone in regional connectivity.

IMPLICATIONS: Beijing's decision to advance the CKU railway project represents a strategic masterstroke, poised to deepen China's influence across Central Asia and beyond. The initiative comes at a critical juncture, as Russia remains embroiled in the Ukraine conflict and faces crippling Western sanctions, creating a vacuum in the region's geopolitical landscape.

The CKU railway will allow China to transport goods to Europe seven to eight days faster than existing land routes by providing a direct, efficient corridor to the continent. This development not only strengthens China’s connectivity but also enhances its role as a dominant trade and infrastructure player in the region.

In the future, the CKU railway could become a central hub for rail connectivity in Asia, linking Central Asia with South and West Asia. Once completed, the railway may be expanded east-west or north-south by integrating it with other countries' rail networks. Potential extensions include a route from Uzbekistan to Pakistan through Afghanistan. Additionally, Uzbekistan's existing connections with Turkmenistan and Iran could position the CKU railway as one of the shortest routes between China and Western Europe.

With the CKU corridor operational, Uzbekistan and Kyrgyzstan are set to emerge as vital transit countries for Chinese exports. Both nations stand to gain significant economic benefits from transit fees, enhancing their economic roles in regional and global trade.

As a pivotal element of China’s Belt and Road Initiative (BRI), the CKU railway represents a strategic project to enhance China's connectivity with Central Asia. This landmark railway will traverse the challenging terrain of western China and Kyrgyzstan’s highest mountains, linking the railway networks of China, Kyrgyzstan, and Uzbekistan. In its final phase, the project aims to integrate with railway systems in Europe, Turkmenistan, Iran, and Türkiye.

The CKU rail corridor is poised to boost regional trade, foster economic cooperation, and provide the landlocked nations of Kyrgyzstan and Uzbekistan with critical access to global markets. Furthermore, the project will deliver essential infrastructure to both countries, strengthening their economic resilience and regional standing.

The CKU railway project is estimated to cost US$ 8 billion, with US$ 4.7 billion allocated for constructing the Kyrgyz section. Given Kyrgyzstan’s GDP of $9 billion, this expenditure represents a significant economic burden. As a result, the financially constrained country has sought a US$ 2.35 billion loan from China to fund its portion of the project, raising concerns about Kyrgyzstan potentially falling into a Chinese debt trap.

Once completed, the CKU railway will allow China to transport goods to Europe seven to eight days faster than existing land routes. Geopolitically, this project is crucial for China, offering an alternative to the current route through Russia and reducing reliance on Moscow for trade with Europe.

On the other hand, the CKU railway raises significant security concerns as it will pass through opium-producing areas, potentially creating a new route for drug smuggling. The corridor could also facilitate the cross-border movement of terrorist and militant groups. This poses a particular threat to China’s Xinjiang province, which has been targeted by separatist and Islamic extremist groups. The railway’s potential to exacerbate regional security challenges underscores the need for robust measures to address these risks.

CONCLUSIONS: The CKU railway has the potential to be a transformative project for Central Asia, elevating the region’s significance as a transit hub between China and Europe. It marks the realization of Beijing’s decade-long ambition to expand its connectivity with Eurasian countries.

The ongoing Ukraine war and Western sanctions against Russia, following its 2022 invasion of Ukraine, have further amplified the importance of the CKU corridor. This new route provides an alternative to the Northern Corridor through Russia, currently the primary transit route between East and West, thereby diminishing Moscow’s strategic relevance in regional trade.

Geopolitically, Beijing views the timing as opportune to advance the CKU railway project in Russia's so-called backyard, leveraging the Kremlin’s preoccupation with the Ukraine war. The launch of this mega project is poised to enhance China’s influence in Central Asia, potentially shifting the balance of power between Beijing and Moscow in the region.

However, the project carries significant security risks. The presence of drug smugglers and militant groups in the region raises concerns that the CKU corridor could be exploited by these armed groups, further complicating Central Asia's already fragile security environment.

AUTHOR’S BIO: Syed Fazl-e-Haider is a Karachi-based analyst at Wikistrat. He is a freelance columnist and the author of several books. He has contributed articles and analysis to a range of publications. He is a regular contributor to Eurasia Daily Monitor of Jamestown Foundation  Email, This email address is being protected from spambots. You need JavaScript enabled to view it. . 

By Sergey Sukhankin

The recent negotiations between Kassym-Jomart Tokayev and Olaf Scholz in Astana have underscored the increasing interest of Western economies in Kazakhstan’s abundant natural resources. The country is richly endowed with strategic minerals, which could provide a substantial counterbalance to the dominance of China and Russia in the global supply chain, a situation that presents various economic and geopolitical challenges for Western nations. Nonetheless, in spite of its wealth in natural resources, Kazakhstan’s significant dependency on China and Russia complicates its potential role in meeting the West’s growing demand for strategic minerals. It is imperative that Western countries develop a concrete strategy that delineates specific steps to assist Kazakhstan in its transition from an overwhelming reliance on hydrocarbons to a more diversified export profile that includes strategic minerals. Absent such initiatives, it will be exceedingly difficult for Kazakhstan to position itself as a viable alternative to both China and Russia.

BACKGROUND:  Leading Western economies, including the U.S., France, Germany, and the United Kingdom, have expressed a pronounced interest in collaborating with Central Asian nations to explore their extensive yet underdeveloped reserves of strategic natural resources. Of particular significance are rare earth elements (REEs) and rare metals (RMs) such as uranium, lithium, tantalum, niobium, indium, scandium, vanadium, thallium, and gallium. This burgeoning interest is driven by two primary factors.  First, the objective of achieving net zero emissions necessitates a substantial increase in the utilization of critical metals. As projected by the International Energy Agency, the rising adoption of clean energy technologies is expected to quadruple the demand for REEs and RMs by 2040. Second, the recent policies enacted by Russia and China to restrict exports of critical metals have compelled Western nations to seek alternative sources for these essential materials. Given the geopolitical challenges in Sub-Saharan Africa – another significant producer of critical metals – Central Asia emerges as the only viable alternative, with Kazakhstan playing a pivotal role. In addition to its vast resource base, the Kazakhstani government has demonstrated a strong commitment to developing its considerable potential in the strategic minerals sector. President Tokayev has asserted that these minerals could serve as the “new oil” for the nation and its economy. Kazakhstan has not only entered into multiple international agreements to facilitate the entry of Western companies into its strategic minerals sector but also plans to declassify information regarding its REE and RM deposits, a move that underscores its dedication to becoming a global leader in this industry. Furthermore, the country intends to collaborate with neighboring Tajikistan in the search for and extraction of critical metals.

IMPLICATIONS:  If Kazakhstan successfully attracts foreign financial capital and expertise in its strategic minerals sector, the country has the potential to emerge as one of the world’s leading players in this industry. Furthermore, partnerships and collaborative initiatives between Kazakhstan and other regionally resource-rich countries, such as Tajikistan and potentially Uzbekistan, could positively influence the global critical metals industry while simultaneously reducing the West’s strategic and precarious dependence on China and Russia. Engaging in partnerships with Kazakhstan to fulfill its demand for strategic minerals presents a mutually beneficial opportunity for Western nations; unlike other suppliers, Kazakhstan is not facing comparable political destabilization (as seen in Sub-Saharan Africa), nor is it encumbered by geopolitical ambitions (like China) or neo-imperialist aspirations (like Russia), both of which could threaten regional stability and deter potential investors. However, Western efforts to leverage Kazakhstan’s extensive resource base may be impeded by three external factors. The first issue pertains to economic sustainability. If Kazakhstan, along with other Central Asian nations, successfully attracts foreign direct investment (FDI) in its critical metals sector, the commencement of large-scale production may lead to a significant decline in global prices for these commodities. Under such circumstances, the exploration and extraction of critical metals – processes that are hazardous, costly, and ecologically unsustainable – could become less economically viable for the country, while also posing potential harm to its ecosystem. Despite President Tokayev’s assertions, from a purely economic perspective, critical metals do not currently appear capable of serving as the “new oil” for the Kazakhstani economy. This situation could be exacerbated in the event of a surplus of critical metals in the global market. The second issue is the “China factor.” Currently, China dominates the global critical metals industry, possessing 35 percent of proven resources, 68.5 percent of extraction and mining capacity, and 80 percent of output. With the European Union’s dependency on Chinese REEs and RMs approaching 98 percent, coupled with China’s growing interest in Central Asian natural resources – driven by the rapid development of its domestic microchip and green energy sectors – Central Asia emerges as a region of strategic significance for China. Given China’s substantial influence in the macro-region, reinforced through soft power, investments, trade relationships, and the indebtedness of local actors, it poses a significant challenge for the EU and the U.S. to compete effectively with Beijing. Additionally, the Chinese approach to business, which emphasizes non-interference in domestic affairs and eschews democracy promotion, is likely to align more closely with the cultural values and traditions of many Central Asian countries, which are not fully democratic. The third issue concerns the “Russia factor.” Russia’s interest in Kazakhstan’s critical metals sector is motivated by factors distinct from those of China. Strategically, Russia aims to maintain its significant role in Kazakhstan’s uranium sector, as Kazakhstan produces over 40 percent of the world’s uranium and serves as a key supplier for Russia. Russia not only partially owns uranium mines in Kazakhstan but also plays a crucial role in the country’s export framework, with the port of Saint Petersburg serving as a vital transportation hub for these exports. From a logistical perspective, identifying alternative routes to Russia – such as the Middle Corridor – would necessitate legislative changes related to uranium transportation and require additional investments to enhance the capacity of these routes.  Even if these conditions are met, the possibility of Russia adopting a more assertive stance should not be overlooked. Historically, disputes have arisen between Russia and Kazakhstan over oil-related matters in the resource-rich Caspian Sea. Following Russia’s aggression against Ukraine in 2022, Kazakhstan has sought to position itself as an alternative supplier of hydrocarbons to the EU, which was marked by a “mysterious” explosion that resulted in the deaths of two workers at Tengiz, Kazakhstan’s largest oil field. The increasing anti-Kazakhstan rhetoric in Russian propaganda channels – reminiscent of narratives used against Ukraine prior to 2022 – often focuses on uranium-related issues. Therefore, one should not discount the possibility of provocations from Russia should circumstances develop in a manner deemed unacceptable to it. These three factors pose significant obstacles for Kazakhstan’s potential to play a significant role in the West's shift away from reliance on China (and, to a lesser extent, Russia) for critical metals. Importantly, neither China nor Russia is likely to relinquish their dominant positions as suppliers of REEs and RMs without resistance, in the face of Kazakhstan’s emerging presence in the market.

CONCLUSIONS:  Kazakhstan, with its abundant natural resources and commitment to a peaceful foreign policy, presents an ideal trade partner for Western countries seeking to meet their demand for REEs and RMs while diversifying their supply chains away from China and Russia. However, achieving this goal poses significant challenges due to Kazakhstan's vulnerabilities in relation to both countries. Without a concrete strategy from the West – a detailed plan that extends beyond simple import-export arrangements, resource exploitation, and vague commitments – Kazakhstan will struggle to fulfill Western demands on its own. Geopolitically insecure and lacking sufficient funding, technology, and expertise, Kazakhstan risks remaining a land of unfulfilled opportunities without comprehensive Western assistance. To avert this scenario, the U.S. should collaborate with the European Union to help Kazakhstan reshape its economic model, transitioning from an economy primarily reliant on oil exports to one that focuses on the export of strategic metals. This transition will likely require coordinated efforts to adjust infrastructure for specific objectives, significant investments, and innovative strategies to navigate the complex geopolitical landscape of the macro-region, which also includes influential regional players such as Turkey and Iran.

AUTHOR'S BIO: Dr. Sergey Sukhankin is a Senior Fellow at the Jamestown Foundation (Washington DC) and a Fellow at the North American and Arctic Defence and Security Network (Canada).

 By Farkhod Tolipov

September 18, 2018, the CACI Analyst

Uzbekistan’s President Shavkat Mirziyoev’s state visit to Tajikistan on March 9-10, 2018, represented a
“closure of the circle” in a series of trips since Mirziyoev was elected and proclaimed Central Asia as the new
foreign policy priority for Uzbekistan. The visit marked the start of a thaw between these states. On August
17-18, Tajikistan’s President Emomali Rakhmon made the first Tajik state visit to Uzbekistan in the entire
period since independence. The two Presidents signed a long-awaited Treaty on Strategic Partnership,
implying that Uzbekistan is now completely surrounded by strategic partners in Central Asia.

 By Sanjar Valiyev

June 11, 2018, the CACI Analyst

President Shavkat Mirziyoyev’s visit to Washington was historic, being the first official visit of an Uzbek president since 2002. Mirziyoyev’s reception, and the breadth and width of agreements signed, constitute an acknowledgement of the reform process in Uzbekistan, as well as of the country’s newfound regional role and in particular its constructive approach to resolving the problem of Afghanistan. Washington’s engagement in these efforts will further improve the prospects of success in Uzbekistan’s domestic reforms and regional initiatives.