China signs billions worth of contracts with Turkmenistan, but no financing

There’s an interesting wrinkle to the $4.6bn deal deal that Turkmenistan recently signed with a subsidiary of China’s National Petroleum Corporation (CNPC) to develop Phase Four of the giant Galkynysh natural gas field: Beijing isn’t providing any financing; the entire bill is being footed by Ashgabat. The fact that Beijing refused to provide any financing suggests Chinese officials do not attach much strategic importance to it.

Construction is scheduled to commence in 2026 and take just over four years to complete. In addition to the Galkynysh deal, Turkmen and Chinese entities are also exploring cooperation in other sectors, including finance, agriculture, construction, transport and communications, according to the official Turkmen TDH news agency.

The TDH report did not delve into any specifics. But a separate report from an official Turkmen source indicated that China’s Shaanxi Yulin Energy Group has reportedly proposed establishing magnesium alloy production in Turkmenistan, while the Puyang Shengyuan Petrochemical Group is looking to set up a plant to produce polycarbonate, a component used in electronics and medical equipment.

Chinese firms reportedly have also submitted a proposal to Turkmen officials to develop a high-speed rail system.

Central Asia 

Railway officials, along with representatives of logistics companies, from Kazakhstan, China, Turkey and European states have agreed on new operating conditions for the Middle Corridor that aim to reduce transit times across the Caspian Sea.

Among the changes, the parties are eliminating paper-based cargo tracking, according to a report published by InBusiness.kz. It is planned that 600 container trains will travel through Kazakhstan from China this year.

Central Asian states and China are discussing establishing an interregional council on investment and trade and developing a five-year plan covering green development, according to a statement distributed by the Turkmen government. Senior diplomats from Central Asia and China recently met in the Chinese city of Xi’an to try to work out details. 

Kazakhstan

A groundbreaking ceremony was held for a $587mn investment project aimed at expanding the Khorgos International Center for Boundary Cooperation on the Kazakh-Chinese frontier, reports inform.kz. Khorgos has been dogged by allegations of corruption, smuggling and inefficiency since it gained the status of special economic zone in Kazakhstan in 2017.

About 85,000 vehicles were exported through the Khorgos dry port during the first quarter of 2026, a 13.1% year-on-year increase for 1Q, reports Exclusive.kz, citing data released by the Khorgos Customs Office. While not all these cars will end up being sold in Kazakhstan, the Central Asian nation has become a significant market for Chinese auto producers. Chinese autos are projected to account for 42% of the Kazakh car market in 2026.

Chinese auto giant Chery signed deals with two Kazakh companies for distribution of its cars in Kazakhstan: with Orbis Auto for Chery’s Lepas models, writes Dknews.kz, and with Astana Motors for Omoda and Jaecoo models, reports Kursiv. Earlier in April, Chery signed a distribution contract for Lepas models with a company in Uzbekistan.

China is transforming crop patterns in one of Kazakhstan’s leading agricultural provinces, Kyzylorda region, writes InBusiness.kz, which cites the province’s vice governor. While rice has traditionally been the region’s primary crop, farmers there are rapidly switching to corn due to high demand from the PRC. The trend is not just limited to Kyzylorda; Chinese demand is altering crop patterns nationwide. 

Meanwhile, Kazakhstan’s national grain operator, Food Contract Corp, is in negotiations with a Chinese company, Shandong Hi-Speed, to increase purchases of Kazakh grain for the Chinese market, according to APK News.

Also, Chinese investors have announced plans to open a high-tech centre to produce virus-free seed potatoes in Kazakhstan, reports Ulysmedia.kz.

Kyrgyzstan 

China’s Sinomach launched construction of a $260mn renewable energy project in Jalal-Abad region, writes Al Circle. Kyrgyzstan is also in negotiations with China Energy Engineering Investment Co. concerning $1bn worth of renewable energy projects, and with Power China for unspecified projects in energy and infrastructure.

A special representative of Kyrgyz President Sadyr Japarov and officials from China’s Shandong Province reportedly reached a deal to build 250 production lines across Kyrgyzstan to bolster the manufacturing capacity of small and medium sized enterprises (SMEs), according to a Kyrgyz government statement. The Kyrgyz account did not reveal financial details or provide a timeline. The statement’s wording suggested that plans may be more aspirational than firm.  “The parties agreed to continue close contacts within the framework of working mechanisms in order to start practical cooperation in the near future,” it stated.

Tajikistan 

Officials from Gorno-Badakhshan Autonomous Region’s (GBAO) Internal Affairs Directorate and the Public Security Bureau of China’s Kashgar Prefecture held a meeting to discuss security cooperation, writes Pamir Inside, adding that the PRC appears intent on expanding its security footprint in the Tajik region. At least five Chinese nationals have been killed in armed incidents along the Tajik border within the last six months, and numerous clashes have occurred over the same period between Tajik security forces and suspected drug traffickers and Islamic militants. 

Tajik officials appear to be struggling to attract interest within Tajikistan’s IT community to participate in a government-organised trade and investment delegation to the PRC. The organider, the presidential Agency for Innovation and Digital Technologies, was forced to extend the deadline for applications.

China’s Southwest University and Tajikistan’s Institute of Botany, Plant Physiology and Genetics signed a memorandum of cooperation on breeding new types of agricultural crops, reports the official Tajik state news agency Khovar.

Uzbekistan 

Tashkent State Transport University and China’s Shenzhen Polytechnic University signed a deal to launch joint undergraduate educational programmes in the fields of vehicle engineering and aviation engineering, including unmanned aerial vehicles.

This article first appeared on Eurasianet here.