$2.5 billion agreement between China and Kazakhstan!

A new one has been added to the series of trade agreements between Kazakhstan and China. During his visit to Shanghai on November 4, 2024, Kazakh Prime Minister Oljas Bektenov signed 8 trade agreements worth $2.5 billion with China's leading companies, China Huadian Corporation, CHN Energy and Zijin Mining Group.
CHINA'S ATTEMPT TO INFILTRATE STRATEGIC SECTORS: A BLOW TO DOMESTIC PRODUCTION!
The agreements signed between the Kazakh government and Chinese companies cover the fields of energy, metallurgy, automotive and high technology. Although the agreements in these sectors initially offer the potential for economic growth and employment creation, they disrupt domestic production and technological development in the country in the long run. Although such agreements made in a resource-rich country like Kazakhstan may seem attractive at first, they can burden the country with debt in the long run. This situation carries the risk of countries losing their strategic assets as a result of the failure to repay debts, especially during periods of economic crisis. It is also assessed that the entry of Chinese companies into domestic markets will not increase competition but rather weaken and increase the dependency of domestic companies.
WHAT ARE THE LONG-TERM RISKS TO KAZAKHSTAN?
The short-term economic benefits that Kazakhstan will gain through these agreements pose problems in terms of independence and economic sustainability in the long term. Many experts agree that countries should be careful in their relations with major economic powers. It is stated that it is important for Kazakhstan to carefully evaluate the results of these agreements and review its economic ties with China.
DEBT TRAP STRATEGY
China's "debt trap" strategy is particularly evident in major infrastructure projects and energy investments in developing countries. For example, Sri Lanka has taken on a huge debt burden due to the Hambantota Port project financed by China. Unable to repay its debts, Sri Lanka was forced to transfer the management of the port to a Chinese company. This situation caused the country to lose control of its strategic assets and created a serious debate in the international community.