In a globalized world, the New Silk Road project represents Uzbekistan’s strategic and economic direction. Against the backdrop of current economic challenges, including inflation risks, slowing global economic growth, and changes in foreign trade, the country faces the question of maximizing the opportunities provided by participation in this project and minimizing potential threats to its economy.

Focusing on Transport Infrastructure

The economy of Uzbekistan is demonstrating positive growth dynamics. Reforms aimed at liberalization, attracting foreign investment, and modernizing infrastructure are beginning to bear fruit. At the same time, special attention is paid to the development of the transport network, which is of key importance for participation in the project.

Located at the crossroads of primary transport and economic routes, Uzbekistan has historically played an essential role in trade between East and West. The New Silk Road project, initiated by China, opens up new prospects for strengthening this role.

According to forecasts by the Central Bank of Uzbekistan and international financial institutions, the country’s GDP with participation in the project is expected to increase, mainly due to the development of industry, agriculture, and the service sector.

China is a Key Partner

In the current conditions, Uzbekistan needs to diversify its economy and reduce its dependence on traditional export goods. In this context, the New Silk Road partnership with China represents an important strategic step. As one of the region’s largest trading partners and investors, this country plays a vital role in the economic development of Uzbekistan.

Trade turnover between Uzbekistan and China in 2021 reached significant levels. China exported US$5.63 billion worth of goods to Uzbekistan, mainly broadcast equipment ($218 million), vaccines, blood, antisera ($216 million), and automobiles ($171 million). At the same time, Uzbekistan exported goods worth $1.94 billion to China, including pure cotton yarn ($595 million), petroleum gas ($581 million), and refined copper ($226 million).

These data highlight the importance of trade ties between Uzbekistan and China, especially in the context of the New Silk Road initiative. It is also noted that in the first half of 2023, Uzbekistan received a significant amount of foreign investment and loans worth about $5 billion, which amounted to approximately 42.4 percent of total investment in the country. The largest investor is China.

Between January and August 2023, the trade turnover between Uzbekistan and China reached $8.3 billion, strengthening China’s status as Uzbekistan’s leading trading partner.

Of course, participation in the New Silk Road project will strengthen existing ties and open up many new opportunities for Uzbekistan. A strategic approach that includes infrastructure development, economic diversification, strengthening international connectivity, and technological cooperation can lead to long-term sustainable growth and prosperity for New Uzbekistan.

Abduaziz Khidirov, UzA