The Kyrgyz Republic is a state in Central Asia towards which Romania shows a special interest, in terms of entering this market. However, despite the best intentions on both sides, bilateral trade is underdeveloped. The “New Silk Road” is an expression of the Beijing administration’s geopolitical and economic ambitions.
Bilateral relations between the Kyrgyz Republic and Romania have experienced sustained dynamism in recent years. The dialogue on cooperation was opened in 2018, it continued with meetings between ministers, promises were made and that’s about it.
In 2019, a delegation led by former foreign minister Lazăr Comănescu traveled to Bishkek to strengthen the relationship between the two countries. During the meeting, the parties emphasized the need to develop bilateral cooperation by organizing annual consultations on various thematic areas, according to the state agency, Kabar.
There have been no high-level meetings since then. Where did the break occur?
According to the latest data provided by the Ministry of Foreign Affairs, the total volume of bilateral trade was 3.75 million dollars in 2020. Exports totaled 2.71 million dollars and imports 1.04 million dollars. From this business, Romania made a profit of 1.67 million dollars. Even though we exported more Romanian services and products to the Kyrgyz market, economic relations are far from ideal, and this volume is considered to be low.
The evolution of Romanian-Kyrgyz commercial relations is slow, due to the lack of interest of Romanian companies. Distance and lack of infrastructure are the main obstacles leading to a decrease in economic attractiveness.
How China wants to extend its influence to Europe
The former Soviet state borders Tajikistan, Kazakhstan, Uzbekistan and China. The economy is predominantly an agrarian one. The industry is specialized in the processing of non-ferrous metals. Bishkek’s current foreign policy focuses on capitalizing on the country’s potential to become an important link on the land transport route connecting Europe with China.
Specifically, the Kyrgyz authorities prioritize the development of the country’s road and rail infrastructure through the Chinese “New Silk Road” program. Geographical location and lack of resources have contributed to the country’s low visibility in terms of tourism and business, but officials hope to change this thanks to the opportunity offered by Beijing.
The megalomaniac project started in 2013 is the largest development program worldwide, covering 17 countries, including Romania. The most important Chinese investments in Romania are in the field of technology, according to EFOR.
The problem with such opportunities is that they are not free.
For example, neighboring Tajikistan paid for the infrastructure projects carried out by the Chinese state in kind: they allowed them to exploit a gold mine and vast areas of mostly agricultural land, according to The National Interest.
China is investing more than $900 billion to develop the region through its ambitious program that recreates the ancient trade route with the aim of boosting the international economy. In Kyrgyzstan, the total allocated funds exceed four billion dollars and have a repayment period of 20-25 years, with an interest rate of 1.86-2.5% and grace periods ranging from 5-11 years. In other words, for the next quarter of a century Kyrgyz will pay the price of not being able to develop on their own.
But critics say China’s road to Europe is not paved with the best of intentions. Although Beijing is ostensibly doing work in underdeveloped countries with the intention of helping them, in essence it is increasing the debt of these states with the aim of making them dependent on its economic authority and trying to dominate global markets through excessive trade in its goods.
The “New Silk Road” is but an expression of the Beijing administration’s geopolitical and economic ambitions.
