Uzbekistan courts Chinese capital for infrastructure and industry

By AI, Created 1:42 PM UTC, June 02, 2026, /AGP/ – Uzbekistan signed more than $3.5 billion in agreements with Chinese partners after the Xi’an interregional forum, with most of the package aimed at infrastructure, transport, construction and industrial projects. The deals show how Tashkent is trying to turn foreign capital into local production, jobs and long-term economic value.

Why it matters: - Uzbekistan is trying to use Chinese money to modernize infrastructure and build domestic industry, not just finance standalone projects. - The outcome could shape whether Chinese capital deepens dependence or helps Uzbekistan create jobs, local production and export capacity. - The model matters for Central Asia, where external investment can either strengthen local economies or leave them tied to outside financing.

What happened: - Uzbekistan’s delegation signed agreements worth more than $3.5 billion after the Uzbekistan–China Interregional Forum in Xi’an. - The package includes $3.35 billion in investment projects and $156 million in export contracts. - The projects cover infrastructure, transport, construction, environmental technologies and industrial production. - Alona Lebedieva, owner of the Ukrainian industrial and investment group Aurum Group, framed Chinese capital as a tool for modernization.

The details: - The agreements include BRT development, roads, overpasses, drainage and stormwater system upgrades, housing renovation and new commercial zones. - Other projects focus on production of decorative stone, ceramics and waste-sorting equipment. - A separate block targets the Yangi Avlod special industrial zone. - Chinese companies are expected to support production, digital infrastructure and high-tech infrastructure in that zone. - Some projects are planned under the EPC+F model, where Chinese partners design, build and finance facilities. - Lebedieva said this model can reduce pressure on the state budget. - Lebedieva also said the model can create long-term obligations if repayments are tied to future city or project revenue.

Between the lines: - The agreements suggest Uzbekistan wants to move from being a passive destination for investment to setting the terms of investment itself. - That shift matters because capital alone does not guarantee modernization. - The real test is whether the projects localize technology, build skills and leave behind durable value inside the Uzbek economy. - If external contractors do most of the work, the economic payoff may be limited. - If the projects create domestic production and export channels, the impact could be much larger.

What’s next: - Uzbekistan’s success will depend on how it manages project design, financing terms and local content. - The state will need to decide which sectors to prioritize, which technologies to localize and which export markets to open. - The Yangi Avlod zone will be a key indicator of whether Chinese cooperation translates into industrial capacity. - The long-term result will show whether Chinese capital strengthens Uzbekistan’s economic base or mainly funds infrastructure built from outside.

The bottom line: - Uzbekistan is not just seeking investment. It is trying to convert Chinese capital into lasting infrastructure, industrial output and economic leverage.