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Why should trade between Central Asia and China continue to expand?

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Abstract

Trade volume between Central Asia and China has tripled since 2002. This study, which is based on Chinese sources, explains the reasons for this expansion in trade. Even if numerous obstacles remain, Government development policy in China’s western regions has induced trade growth between Xinjiang and Central Asia. Trade flows mainly consist of three blocks: economic activities of the Xinjiang Production and Construction Corps, commerce conducted by traders of the coastal province of Zhejiang, based in Xinjiang, and petty trade notably between Kazakhstan and Xinjiang.

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Notes

  1. In March 2005, the number of Chinese companies operating in Central Asia was the following: Kazakhstan, 744, Uzbekistan, 100, Kyrgyzstan and Tajikistan (along the border), a dozen.

  2. These figures include estimates of informal trade, which are difficult to obtain. According to Green (2001), who quoted an Asian Development Bank study, shuttle trade between Kazakhstan and China reached 0.5 billion USD, which is equivalent to formal trade. Share of informal trade has probably decreased since 2000 because informal trade has become less profitable and formal trade has boomed.

  3. See Chaudhuri (2005), Wu and Chen (2004), Wiemer (2004) and Paramonov (2005) for more details on Xinjiang economy and the region’s economic relations with Central Asia.

  4. Chinese main car brands are : FAW, Shaolin, Mudan, Lifan.

  5. For more details, see Appendix 1.

  6. Data provided in local media in Xinjiang (based on customs statistics).

  7. For similar products, Mongolian exporters are paid, on average, 22 USD/kg and Chinese 31 USD/kg.

  8. For an exhaustive list of these border-posts and SEZs, see Appendix 2.

  9. XPCC’s trade reached 2.2 billion USD (comprising $1.2 billion in imports and $1 billion in exports).

  10. Even though rail transport has increased in the recent years, Sino-Central Asian transportation by road remains prevalent.

  11. Land routes would decrease transport distance by more than 10,000 km.

References

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II Magazines and newspapers (various issues)

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  • Beijing Times

  • Central Asia Regional News

  • China Daily

  • China Statistical Yearbook

  • China Today

  • Fazhi Wanbao

  • Huanqiu Caijing Zazhi

  • Huanqiu Shibao

  • Reuters

  • Shijie Jingliren

  • Straits Times

  • UPI

  • USA Today

  • Washington Post

  • Washington Times

  • Xinhua

  • Xinjiang Daily

  • Xinjiang Jingjibao

  • Xinjiang Tianshan

  • Xinjingbao

  • Yazhou Shibao

  • Yazhou Zhoukan

  • Zhongguo Qingnianbao

III Official Chinese websites

IV Chinese economic information websites

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Acknowledgement

Authors would wish to thank Bart Kaminski, Régis Genté, Gilbert Lesbats and Dana Ward for their comments.

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Correspondence to Gaël Raballand.

Appendices

Appendix 1

China–Central Asia trade flows (Chinese sources)

Table 8

Appendix 2

Main border-posts and free economic zones in Xinjiang

1st category border-posts

  1. (1)

    Urumqi airport

  2. (2)

    Kashgar airport

  3. (3)

    Korgas–Horgos–Khorgos–Huoerguosi free economic zone

  4. (4)

    Alatau (Alashankou) border-post

  5. (5)

    Baketu border-post

  6. (6)

    Jimnay border-post

  7. (7)

    Aheybiek border-post

  8. (8)

    Dulart border-post

  9. (9)

    Muzart border-post

  10. (10)

    Irkeshtam border-post

  11. (11)

    Torurgart border-post

  12. (12)

    Kalasu border-post

2nd category border-posts and free economic zones

  1. (1)

    Urumqi Frontier Hotel

  2. (2)

    Urumqi Economic Development Zone

  3. (3)

    Urumqi Trade and Commercial Town

  4. (4)

    Hualing Market

  5. (5)

    Changji Central Asia Trade and Commercial Town

  6. (6)

    Kashui Central Asia International Trade Market Port

  7. (7)

    Yili Bayinday Port

  8. (8)

    Yining Zone

  9. (9)

    Tacheng bus station

  10. (10)

    Kuitun station

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Raballand, G., Andrésy, A. Why should trade between Central Asia and China continue to expand?. AEJ 5, 235–252 (2007). https://doi.org/10.1007/s10308-007-0115-5

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