Chinese investors pose no threat to Uzbekistan – Deputy Minister

Recently, allegations have been circulating that Chinese companies are allegedly “grabbing” Uzbek lands. Deputy Minister of Investments, Industry and Trade of the Republic of Uzbekistan, Ilzat Kasimov, denied these allegations and provided detailed information on the situation.

“Attracting foreign investment is an important factor for Uzbekistan’s sustainable economic growth. Competition for capital is intensifying worldwide, and our country consistently continues its policy of creating an open and equal investment environment. China is one of the largest investors in the Uzbek economy,” Kasimov said.

The Deputy Minister emphasized that all investors, regardless of their country of origin, operate in Uzbekistan on equal terms and in accordance with the law. Their activities are regulated by state bodies and public institutions, ensuring the transparency of the investment process.

“In addition to China, Saudi Arabia, the UAE, Turkey, Russia, France, Germany, South Korea, and many other countries are investing in the Uzbek economy. Our country is not limited to a small number of partners, but is attracting investments from various sources,” he said.

It was reported that over the past three years, Chinese investments have been distributed as follows:

- 62% to industry;
- 11% to the fuel and energy sector;
- 4% to agriculture;
- The remaining percentage to other sectors.

The Deputy Minister noted that the largest portion of Chinese investments is directed toward industry, not agriculture or land resources. According to him, one of the main sectors where Chinese investments are actively attracted is the textile industry.

"Today, there are more than 7,600 textile enterprises in Uzbekistan, which produce products worth 123.2 trillion sums per year. Only 57 of them were established with the participation of Chinese capital. That is, the share of Chinese companies is not significant," the Deputy Minister said.

Ilzat Kasimov also added that in agriculture, the emphasis is on investments in technologies, not land.

“Despite widespread misconceptions, only 4% of Chinese investments are in agriculture. In Uzbekistan, land is prohibited from being sold to foreign investors; it can only be leased for 25 years, and this is done only through an open auction.

For example, Lihua Group is implementing a project to grow cotton and seeds in the Kashkadarya and Tashkent regions. The company was given non-irrigated and low-yield lands on the condition that they increase their productivity using modern agricultural technologies,” he said.

In addition, investments are being made in alternative energy sources. Uzbekistan is actively developing renewable energy.

- 2.7 GW of solar power plants;
- 752 MW of wind power plants;
- 169 MW of micro-hydropower plants;
- 1.4 GW of energy storage capacities are being commissioned.

It is noted that China is the world leader in the production of solar and wind power equipment. More than 20 energy projects worth $9 billion are being implemented in Uzbekistan with the participation of Chinese companies, and they are mainly staffed by local specialists.

“Based on the above facts, the following conclusions can be drawn: the main portion of Chinese investments is directed toward industry, technology, and energy. Foreign investors cannot buy land in Uzbekistan. Most of the jobs in these projects are occupied by Uzbeks. Cooperation serves not only to attract investments but also to create new technologies and jobs. We urge the general public to rely only on reliable facts! All investment projects are being implemented in accordance with the interests of Uzbekistan and within the framework of national legislation,” said Ilzat Kasimov.