China in Kyrgyzstan: lesson for Oceania and PNG

This article was published under Asia Pacific Perspective: China + column on Sunday Chronicle on Sunday August 23, 2009.
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By Mathew Yakai

CHINA’S presence in the world and the region today is welcoming given Beijing’s growing economic power with direct multilateral approach in many issue areas.

If there is any year in my existence that I can think of which brought China into many challenges and achievements then it was last year, 2008.

China stood the harsh snow storm, overcome the devastating earthquake, successfully hosted the Summer Olympic, successful space exploration, overcome the dumpling issue with Japan, the toy issue with United States, took responsibility in the melamine saga and fixed it, engaged fully in the world financial crunches, direct shipping, flying and postal services with Taiwan, chair in the ongoing Six Party Talk in the North Korea issue and many more.

After its economic reform in 1978, China has surprised the world with its persistent economic growth that has brought many Chinese out of poverty, created abundant job due to foreign investments, and becoming one of the worlds “chimney” that no country would ignore.

On the bilateral level, China is also enjoying good relationship with many countries throughout the world.

Kyrgyzstan is no exception. The country in East Asia, is one of China’s important partners in many issues, including economic trade and investments.

This scribe talked to Abdisait Karimbekov from Kyrgyzstan to find out about China’s investment in his country.

Abdisait is currently pursuing masters’ degree in International Relations at Jilin University, China, under the Chinese Government Scholarship.

Being a representative of China Investment Cooperation for Export and Import of Machinery while pursuing his degree, Abdisait is compelled that China’s investment in his country is important.

“China’s investment in Kyrgyzstan is important because we have state projects like road construction, railway construction, energy and water power station and other important state constructions that need top notch experts,” he said.

Abdisait said that though Russia is a “big brother”, it can not adequately provide resources and expertise his country needs to develop its economy.

“We can find a lot of expertise and equipments in China. Russia is an elder brother but they do not have adequate capital to cover all projects in Kyrgyzstan,” Abdisait said.

Abdisait is well aware of his country’s position and the importance of China because he was directly involved in a lot of state projects.

Some of his tasks involved inviting potential investment from China to meet with officials from his government including important ministries like Transport and Energy, Department of Construction and Foreign Affairs Ministry.

One of his milestones was the signing of a Memorandum of Understanding between the Ministry of Transportation of his country and China Machinery and Export Cooperation last year May. The negotiation for viable projects is currently undergoing.

Abdisait admitted that he has negotiated and arranged for a lot of meetings between the officials of the two countries.

He said there are a lot of foreign investments in Kyrgyzstan but China’s investment is picking up because of its commitment, technological know-how, and efficiency in project implementation and of higher standard of service delivery.

“China provides its investment at a competitive price, compared to others,” he said.

He said Kyrgyzstan imports 50 percent of its goods from China on a very cheap price, but the quality and standard of the products are the same as those one would buy from Russia or Europe in a higher price.

“That’s why other goods and services including investments are cheaper compared with other countries,” he said.

Abdisait also highlighted an important road construction from China to Kyrgyzstan which is more then 100 km. This, he said, would provide easy access to both countries market and improve economic trade and people to people diplomacy.

China and Kyrgyzstan are currently negotiating for China – Kyrgyzstan – Uzbekrstan railway which will benefit both China and Kyrgyzstan having excess to European markets.

The railway alone when constructed will boost Kyrgyzstan’s economy and provide a lot of job opportunities for Kyrgyzstan.

He said the construction once approved will engage a lot of China’s expertise.

Most of the economic and trade relationship between the two countries are fruitful through the Shanghai Cooperation Organisation (SCO).

The People’s Republic of China, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, the Republic of Tajikistan and the Republic of Uzbekistan were the founding states of the SCO

Shanghai Cooperation, signed in 1997 is aimed at strengthening bilateral, economic and military relationships between the member countries

He said Kyrgyzstan has a lot of mineral resources like gold, copper, coal and other resources that need to be explored and seek world market, and finds China’s investment relevant at this time.

When this scribe asked if China is in Kyrgyzstan for economic reasons: for natural resources and find markets for its products, Abdisait said, “this is an issue that generates a lot of debates in many countries.”

The current International Relations student with an undergraduate study in diplomacy says that whatever is negotiated between two countries must be respected by any countries and organizations, as long as it does not pose any threat to any countries.

Abdisait further commented that the two economies are complementary, China has what Kyrgyzstan needs and Kyrgyzstan has what China needs.

In this case, he said, they negotiate for benefits on win-win situation so both parties are happy.

When it comes to the issue of corruption, he commented that this is an area where responsible government and company officials must take serious note of.

Abdisait believes that there are law and regulations to guide such cooperation and they should be respected and upheld.

He believes that his country’s government officials must be honest when negotiating for state projects, in order to protect their country’s sovereignty and their integrity.

From China’s side, he said that they are genuine and want to work honestly with his government.

Abdisait admits China’s growth and influence in the region and the world but he is optimistic that this is not a threat but a gain for many developing countries like his.

He supports China for discouraging war in Beijing’s foreign policy and upholds peaceful development.

Abdisait, speaks his local Kyrgyz language, fluent Russian, Chinese and English. He completed his undergraduate majoring Diplomacy and now working on his masters, majoring International Relations.

Asked what he wants to be after his masters, “I want to work in the field of investments and negotiate with foreign investors to invest in my country.”

This is a job well suited for him given his different language capabilities.

But this scribe told him that he would make a good diplomat given his study major and language capabilities.

“No, in 2012, I want to enter politics and become an MP and be responsible in the field of foreign investment, and deal with China. This will give me some power to control some of my country’s resources from being exploited. I will make sure the local laws are followed by investors.”

“The sovereignty of my country is important and I must directly involve protecting it, both by laws, negotiations and politics. I can speak many languages and understand different minds and I am able to deal with foreign investors. This is lacking in my country now,” he said.

This scribe conducted the interview at Jilin University student dining hall on Friday 19th Dec, 2008.

Looking into his eyes, Abdisait appeared very serious with what he said. He always tells me. “Learn the language and you understand Chinese people. They are good, they are friendly, and we must know the language to work with them.”

I agreed with no doubt about that!

After talking to Abdisait and writing this commentary, I am thinking of genuine investments by Chinese multinationals in the Pacific region and PNG that can rescue the starving economies from the woes.

Having been in China for a while and had some good train and bus ride in the vast landmass, I am amazed by its rail way and road construction.

If China can build the road from China to Bishkek, the capital of Kyrgyzstan then the Pacific island countries can sit down and negotiate for similar projects from China.

All countries know that an efficient road and railway system, with reliable electricity and communication is the driving force in any countries development.

China has shown in many developing countries that it is willing to help develop their economies.

It takes a heart, a mind and dedication to realize China’s genuineness.

Don’t judge by the cover or western media speculation. Engage China and you don’t regret.


Note: “Asia-Pacific Perspective: China +” looks at Chinese society, culture, economy, governance and China’s role within the Asia Pacific region and the world over. It mainly focuses on how PNG can learn from China’s experience. Contact the writer on m_yakai@hotmail.com or SMS 71489901 form comments