OREANDA-NEWS. April 09, 2008.  “Kazakhstan attaches great importance to steady expansion of mutually beneficial cooperation and strategic partnership with China”, said Kazakhstan’s Prime Minister Karim Massimov when speaking at the opening of “Kazakhstan-China: Partnership for Success” Kazakh-Chinese business forum in Beijing, reported the Official website http://en.government.kz.

Head of the Kazakhstan’s Government noted that the current Kazakh-Chinese relations rely mainly on trade-and-economic cooperation. Bilateral trade turnover has grown manifold within a short period to reach USD 13.8 billion in 2007. This suggests that the figure could exceed USD 15 billion as early as by 2010.

Energy sector is one of the major realms of cooperation. The two nations have successfully launched Atasu-Alashankow oil pipeline and are now constructing a second stage, namely Kumkol-Atasu section; work is under way to construct the Kazakhstan-China gas pipeline; efforts are being taken to expand cooperation in peaceful nuclear industry. Besides, the Chinese side has expressed interest in constructing Moinak hydroelectric power station and Balkash thermal power plant.

“Today we have entered a new stage of business cooperation – the stage of implementation of large-scaled non-extraction projects”, K. Massimov said, adding that this year the sides will complete creation of Khorgos International Center for Transfrontier Cooperation. Connection of railway networks of the two nations at Khorgos border crossing planned for 2009 will be of great importance to the Center’s work. For the time being, work is under way to create a free trade zone at Dostyk-Alashankow railway border crossing and to launch the 8500-km West Europe – West China transcontinental motor transport corridor, 2800 km of which will run across Kazakhstan.

Kazakhstan’s PM noted that the two nations have intensified cooperation in finance, notably in large project financing, export credit insurance, involvement of second tier banks into development of the two countries’ financial markets, including through opening of subsidiaries. He announced that the draft plan of non-extraction cooperation initiatives to be signed by the sides comprises over 40 projects which could be of interest both to large companies and mid-size businesses.

K. Massimov invited Chinese business community to participate in implementation of the projects, adding that Kazakhstan welcomes foreign investments into manufacturing and processing industries, as well as in technology-intensive sectors, where all the favoring conditions have been put in place for foreign investors. Kazakhstan as an emerging nation most fully integrated into the global economy has become known for its favoring investment climate and deserved a reputation of a reliable partner.

Through successful implementation of the 2030 Development Strategy, Kazakhstan has attracted USD 70 billion of FDI, which is 80% of the investments accommodated by the entire Central Asia. The country has passed a number of laws to ensure protection of foreign investors’ rights.

K. Massimov also noted that against the backdrop of the global economy downturn, Kazakhstan’s economy has proved its viability. The nation is succeeding in mobilizing domestic investment resources and strengthening the role of state-owned holding companies, institutes of development, social enterprises. A magnet for investments, Kazakhstan has been investing in other countries’ economies. Pursuing the goal of joining the club of 50 most competitive nations, Kazakhstan is searching for new niches.

Common lengthy frontier, ever-enhancing infrastructure for transfrontier cooperation, and regional integration call for a balanced and fruitful cooperation to serve the needs of both states, Kazakhstan’s PM summed up.