The Silk Road Economic Belt (SREB) builds on China’s long-standing economic investment in Central Asia, and it has the potential to further develop Central Asian economies. However, China’s historical track record of investment engagement in the region raises concerns that the SREB could instead exacerbate economic inequalities and poor governance.
China has long been a key driver of infrastructure investment and construction in Central Asia, covering a wide range of sectors. It has invested heavily in the region’s natural resource extraction, with gas, oil, uranium, gold and copper making up key exports from the region.
However,China has done far more than just invest in extractives. Chinese companies have built roads, railways, tunnels, power lines and refurbished oil refineries as well as special economic zones. It is also actively involved in agri-business and telecommunications investments.