Logistics, agriculture, workshops of Lu Ban – a wide range of areas of cooperation was discussed by Serik Zhumangarin in Urumqi with Ma Sinjui

During his visit to Urumqi, Deputy Prime Minister - Minister of Trade and Integration Serik Zhumangarin discussed with the Secretary of the XUAR Party Committee Ma Sinjui issues of strengthening cooperation and overcoming emerging barriers.

At the beginning of the welcoming speech, Ma Sinjui conveyed his best wishes to the President of Kazakhstan Kassym-Jomart Tokayev, once again noting the high level of reception from the Head of State during the March visit of the Governor of Xinjiang to Astana.

«Xinjiang is the western gateway of China, it is very important in the implementation of the «One Belt, One Road» initiative. Now there are 17 checkpoints on the territory of the XUAR, of which the largest number is with Kazakhstan. Last year, the total turnover of the XUAR amounted to 246 billion yuan, an increase of 57%. In terms of growth rates, XUAR took the first place in China. The Central Asian countries accounted for 119 billion yuan out of the total volume of trade turnover, of which the share of trade with Kazakhstan was the largest», — he noted. 

Ma Sinjui focused on strengthening the interconnectedness of the parties.

«All checkpoints have resumed work, as well as a regular flight from Almaty to Urumqi. The efficiency of cargo traffic is increasing, the Khorgos checkpoint is already starting to work 24/7. A green corridor for the passage of agricultural products has been launched. Recently, the VI Chinese Xinjiang International Festival of National Dances was held, where an ensemble from Kazakhstan took part. There was a full house during the performance. The mastery and art of folk dancing is the vanguard of relations between Kazakhstan and China. And we will contribute to the development of relations between our countries», — he concluded.. 

Ma Sinjui suggested deepening trade and economic cooperation in railway and road transportation, creating new logistics centers, increasing the number of flights, establishing cultural exchanges, creating an international business environment to attract entrepreneurs from Kazakhstan, as well as investing in Xinjiang and vice versa.

«We are interested in working in the field of culture and tourism, increasing the number of quotas for free education of students from Kazakhstan in Xinjiang», — Ma Sinjui said.

Serik Zhumangarin, for his part, warmly thanked Ma Sinjui for the friendly reception and conveyed greetings from the President and the Head of Government, stressing that Xinjiang is the No. 1 partner in trade with China with a share of 40%.

«Our goal is to develop logistics. The President of Kazakhstan has set us the task of turning Kazakhstan into a logistics center. Now it is planned to implement a very important project – a logistics terminal in Urumqi, which will become a cargo consolidator. We are ready to participate in this project. During the «China-Central Asia» summit, it was decided to build a dry port in Xi'an. And along with it, the logistics of Kazakhstan is being built not only with the XUAR, but also with the whole of China. I agree that it is not necessary to limit cooperation only with the development of rail and road crossings. It is necessary to develop air cargo turnover, passenger turnover, e–commerce. We have recently met with major online retailers, and in the near future «Kazpost» JSC will continue negotiations with them to consolidate intentions through appropriate agreements. In the field of education, on the basis of the University in East Kazakhstan Region, we are preparing for the opening of the «Lu Ban Workshop» (China's project to train technical specialists using advanced Chinese technologies)», — Serik Zhumangarin said..

The industry that most closely connects the two border regions is agriculture.

«We are currently actively working with Hualin Group. They have already visited three regions in Kazakhstan, they are very interested in cattle breeding. These products are aimed at export to Xinjiang. We are also ready to develop a sheep breeding cluster in the Abai region. There are many joint projects in the energy sector. Chinese companies are involved in the construction of hydroelectric power plants, especially on small rivers. In Kazakhstan, as in the XUAR, there is a big problem with water for agriculture. This industry consumes 70% of the total volume of fresh water. In the XUAR, water is used very effectively in agriculture. We ask you to share your competencies and are ready to receive Chinese specialists to help in setting up our irrigation systems, saving, spending, etc.»,— the Deputy Prime Minister continued..   

He noted that in order to intensify cooperation, it is necessary to remove barriers that hinder trade relations.

«One of the barriers is the delay in decision–making by the General Customs Administration of China. We have sent several invitations to conduct an audit of the Veterinary Service of Kazakhstan and the inspection of Kazakhstani enterprises, but have not yet received a response. The other day, the World Organization for Animal Health recommended confirming the status of 5 south-eastern zones of Kazakhstan free of foot-and-mouth disease with vaccination. We hope to open the access of Kazakh meat products to the Chinese market with your help. We also ask for assistance in speeding up the receipt of a response from the Gas Turbine Plant regarding the conclusion of a contract for the supply of equipment for the veterinary laboratory in East Kazakhstan region»,— S. Zhumangarin said.

Following the meeting, the parties decided to prepare a map of barriers to joint trade to work on their elimination.

For reference: About 40% of all trade between Kazakhstan and China falls on the XUAR. The trade turnover between Kazakhstan and the XUAR in January-June 2023 amounted to $8.5 billion, which is 87.3% higher than in the same period of the previous year ($4.5 billion). Exports from Kazakhstan to the XUAR in January-June 2023 increased by 36.5% and amounted to $6.1 billion. Imports to Kazakhstan from the XUAR in January-June 2023 increased 2.2 times and amounted to $6.2 billion.