How does “One Belt, One Road” benefit Uzbekistan?

On October 17-18 this year, a summit on the “One Belt, One Road” project will be held in Beijing (China). This summit will be attended by the President of Uzbekistan Shavkat Mirziyoyev.

Which countries are included in the One Belt, One Road project promoted by China? How beneficial is the project for Uzbekistan? Economic analyst Shukhrat Rasul answered these questions.

“The forum in Beijing will mark the 10th anniversary of Chinese President Xi Jinping’s massive global infrastructure and energy initiative, billed as reviving the ancient Silk Road to boost global trade.

The Chinese “One Belt, One Road” project consists of two directions. The first is by land. The second is across the ocean. The land project was originally created in 2006. It provides for roads passing through Russia, Kazakhstan and Uzbekistan. Afghanistan is now joining this trend. The program promises to bring enormous benefits to every participating country.”

According to the expert, China may transfer some of its enterprises to Uzbekistan and Kazakhstan.

“By participating in this project, Uzbekistan receives payment for the transportation of transit goods. If products coming from China remain in Uzbekistan, state duty will also be charged. China will create an infrastructure here to sell its goods. But if China relocates its companies, the prices of its products exported to Europe will fall. For example, China can process Uzbek cotton here, turn it into finished products and sell it to Europe. In this sense, joint ventures and tax residents can be built in Uzbekistan. The increase in the number of businesses will also create new jobs. This is very beneficial for both parties.

When explaining relations between Uzbekistan and China, I always use the example of relations between Mexico and the United States. Because in the 70s and 80s of the 20th century, Mexico could not enter the top 100 in terms of GDP. Mexico has now risen to 13th place. This did not happen by accident. Today, most of the largest automobile companies in the United States have moved to Mexico. China may also move its automotive industry to Uzbekistan. Because, as you know, we have cheap labor compared to China. That is, Uzbekistan can repeat the experience of Mexico.”

Material from the online publication daryo.uz