Kazakhstan eyes multiple gains from Chinese investment

Subject

Kazakhstan's eastward tilt.

Significance

Kazakhstan has been adept at building ties with Western and East Asian states without upsetting traditional ally Russia. Economic links to China have grown disproportionately in recent years, thanks to Kazakhstan's search for investors, and the opportunities Beijing sees in Central Asia's largest and most advanced state. Efforts to expand trade with Japan and South Korea and attract investment there have had limited success.

Impacts

• Chinese investment activity in Kazakhstan threatens to crowd out other Asian investors.
• Steep increases in Chinese imports into Kazakhstan will undercut local production.
• The government will have to manage grassroots fears of Chinese encroachment.