Xi Signs Treaty with Central Asia, Deepens Trade and Energy Ties Amid Global Shifts

BEIJING, Jun 18 (Alliance News): Chinese President Xi Jinping signed a landmark treaty with Central Asian nations on Tuesday, formalizing a new phase of strategic cooperation with the resource-rich region as Beijing seeks to strengthen its regional clout amid global realignments.

At a regional summit held in Astana, Kazakhstan, Xi and the presidents of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan endorsed a treaty of “permanent good-neighbourliness and friendly cooperation,” Chinese state media Xinhua reported.

The summit—only the second of its kind, following last year’s high-profile inaugural meeting in northwest China—was held concurrently with the G7 summit, symbolizing Beijing’s pivot toward regional integration while countering Western influence.

“Trade wars and tariff wars produce no winners,” Xi said in a veiled critique of the United States. “Unilateralism, protectionism, and hegemonism harm both others and oneself. China is ready to work with Central Asian countries to safeguard international justice and oppose hegemonism and power politics.”

Xi pledged 1.5 billion yuan (approximately $209 million) in grant assistance for development and livelihood projects in the region. He also called for expanded cooperation in sectors including energy, minerals, agriculture, and infrastructure.

Since Russia’s invasion of Ukraine, Beijing has accelerated efforts to deepen its economic presence in Central Asia—a region long within Moscow’s influence—taking advantage of shifting geopolitical dynamics and the growing importance of alternative trade routes.

In separate bilateral meetings, Xi pressed for progress on the long-stalled China-Kyrgyzstan-Uzbekistan railway project—an overland trade route bypassing Russia. The project, first proposed in the 1990s, has gained momentum as international shippers seek alternatives to Russia-linked corridors amid Western sanctions.

China’s trade with the five Central Asian countries reached a record 286.42 billion yuan ($39.9 billion) in the first five months of 2025, up 10.4% year-on-year, according to Chinese customs.

Turkmenistan, a key supplier of natural gas to China, is the only country in the bloc with a trade surplus with Beijing. Kazakhstan and Kyrgyzstan, by contrast, continue to run significant trade deficits.

Energy cooperation remains central to China’s regional strategy. During talks with Turkmen President Serdar Berdymukhamedov, Xi called for expanding gas cooperation, diversifying trade beyond energy, and optimizing the structure of bilateral commerce.

Analysts say China’s growing influence in Central Asia not only enhances its access to critical resources but also positions Beijing as a central actor in Eurasian connectivity, with potential long-term gains in trade efficiency and regional stability.