Xi hails ‘new level’ in relations as China, Kazakhstan sign deals worth 11.4 billion euros

Published on
07/17/2026 – 4:14 p.m. GMT+2

Chinese President Xi Jinping told his Kazakh counterpart Kassym-Jomart Tokayev that bilateral relations reached a new historic high during the Shanghai negotiations, with the two countries signing more than 70 trade deals worth more than $13 billion (€11.4 billion).

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“Through our joint efforts, the permanent comprehensive strategic partnership between China and Kazakhstan has reached a new level. There is still considerable room for further development,” Xi said on the sidelines of the World Conference on Artificial Intelligence.

Trade between the two countries reaches $49 billion (42.8 billion euros) per year, with cumulative Chinese investments in Kazakhstan exceeding $30 billion (26.2 billion euros).

More than 8,500 Chinese-backed companies currently operate in Kazakhstan, with Beijing remaining Astana’s largest trading partner.

“Our country is always ready to provide a business environment for Chinese investors. We guarantee legal protection for investments, modern infrastructure and a qualified workforce,” Tokayev said.

Among the flagship deals, the two sides agreed to build Central Asia’s first battery manufacturing plant in partnership with Chinese electric vehicle battery giant CATL, as well as broader cooperation with Chinese automakers.

A petrochemical complex with Sinopec, a corn processing plant with the Fufeng group and a cotton-textile cluster with the Lihua group are already under construction.

Kazakhstan and China also signed an agreement to jointly develop Kazakhstan’s first pumped-storage hydroelectric power plant in the Kargaly River valley in the Almaty region.

Logistics remains a strategic advantage

Kazakhstan handled about 85% of rail freight between China and Europe last year, a position Tokayev said he wants to turn into a strategic advantage.

“Kazakhstan is expected to become the main transportation and logistics hub connecting China with Central Asia, the Caucasus, the Middle East and Europe,” he said.

The country is connected to 13 international transport corridors and the government has invested more than $35 billion in transport infrastructure over the past 15 years.

Two new projects are designed to further increase this capacity. The Bakty-Ayagoz railway line will open an additional railway crossing on the Kazakh-Chinese border.

At the port of Kuryk on the Caspian Sea, the Chinese group Guoyou Materials plans to build a multifunctional terminal with an annual capacity of 15 million tonnes. Kazakhstan and China also discussed creating a joint venture to dredge the Caspian to maintain the depth and usefulness of the port.

On the digital front, Kazakhstan is developing a Smart Cargo platform to integrate customs, logistics and commercial operations into a single digital system.

Tokayev also highlighted Alatau City, a new urban development built on a “digital by default” model with smart transportation and digital payment infrastructure.

Tokayev used the AI ​​conference to declare the technology a national priority. “Today, it is no longer enough to rely on natural resources. Competitiveness is determined by technology, data and artificial intelligence,” he said.

Kazakhstan recorded a grain harvest of 27 million tonnes, which Tokayev attributes in part to the spread of precision agriculture, drone monitoring and satellite crop management. More than 200 agricultural businesses now operate as smart farms.

The two countries signed a 2027-2030 trade and economic cooperation roadmap to govern their future collaboration.