Kazakhstan's Export Priorities: Expansion in Trade with China, the EEU, and Central Asian Countries
Livening Up Kazakhstan's Export Game
Stepping into the year 2024, Kazakhstan's export of goods and services skyrocketed to a staggering $40.6 billion, marking a 11% jump from the previous year's $36.4 billion. This significant growth was the result of a carefully crafted policy that prioritized export expansion, market diversification, and strengthening international partnerships.
At the heart of this strategy lies Kazakhstan's strategic relationship with China. Regional cooperation with various Chinese provinces has yielded fruitful results. In 2024, trade with several regions soared: trade with Shanxi province increased 11.5 times, Yunnan saw a whopping 9-fold increase, exports to Sichuan grew by a robust 49%, and to Shanghai multiplied by 3.6. These directions accounted for a substantial portion of the increase in non-resource exports.
Kazakhstan's footing on the Eurasian Economic Union (EAEU) and Central Asian markets remained strong. In 2024, the Russian Federation remained the largest market for non-resource goods, with exports totaling a substantial $8.1 billion. Kazakhstan's strategic position, logistics connectivity, and participation in Eurasian integration played a crucial role in maintaining consistent trade growth. China followed closely with $7.19 billion, showing rapid growth in supplying metal, chemical, and food products. The opening of QazTrade's trade office in Urumqi and the development of export infrastructure in Nanjing further boosted cooperation.
Central Asia displayed a stable demand for Kazakh products, particularly in processing, machinery, and food industries. Uzbekistan, Kyrgyzstan, and Tajikistan stand as priority markets with rapidly growing trade volumes.
Total non-resource exports of Kazakhstan in 2024 reached an impressive $28.8 billion, marking an 11.9% increase from the previous year. This shift in the export model saw a notable progression towards a diversified structure, with non-resource exports accounting for approximately 35% of the trade structure. The positive trend continues into the current year, with non-resource exports reaching $3.6 billion in January-February 2025.
To further tap into its export potential, Kazakhstan is executing a strategy to bolster logistics infrastructure. The focus is on creating modern trade-transport hubs along key routes, including platforms at the borders with China and Central Asian countries. Key initiatives include the international center "Horgos", MCTP "Central Asia", and ITLK "Alatau". To achieve stronger positions on external markets, logistics and certification barriers are being eliminated, digital trade services are being developed, and export support institutions are being strengthened.
Kazakhstan's ongoing economic strategy involves moving beyond its traditional reliance on resource exports and positioning itself as a vital transit hub for trade between Europe and Asia. The country has seen more than 90% of recent investments directed into the non-resource sector, with a focus on manufacturing, chemical production, and transport. Despite these efforts, the country faces challenges such as slow-moving bureaucracy and systemic barriers that hinder the realization of its full potential.
The country's increased focus on rare-earth mining and exports to China highlights the importance of diversifying export markets. Central Asia is becoming increasingly significant for critical minerals, necessitating strategic partnerships for supply chain resilience. The region is projected to experience economic growth, with potential for increased trade among Central Asian nations. Kazakhstan's position within the EAEU facilitates trade with member states, but specific details on non-resource export growth within this bloc are less emphasized in current reports. Infrastructure investments, such as rail lines and dry ports, could enhance trade across the region, including with EAEU partners.
In the continuing pursuit of diversifying its export markets, Kazakhstan is strengthening its partnerships in the finance sector to bolster logistics infrastructure, as seen in the development of export-focused projects such as the international center "Horgos" and MCTP "Central Asia". This financial investment is crucial for Kazakhstan's aim to establish modern trade-transport hubs along key routes, which include platforms at the borders with China and Central Asian countries.
The strategic relationship between Kazakhstan and China extends beyond trade to include the finance industry, as the opening of QazTrade's trade office in Urumqi and the development of export infrastructure in Nanjing are evidence of this financial cooperation. This financial support is essential for Kazakhstan's objective of becoming a vital transit hub for trade between Europe and Asia.
