Keeping Up the Good Momentum
2021-03-09ByBakhtiyorSaidov
By Bakhtiyor Saidov


The deepening cooperation between Uzbekistan and China in trade, investment, energy and transportation gives us optimism and confidence about the future of the 29-year-old bilateral relationship. Despite the COVID-19 pandemic, the two countries have not only strengthened their comprehensive strategic partnership, but also identified new facets of practical interaction.
Political dialogue
A key factor in this is the political dialogue at the highest level. Uzbek President Shavkat Mirziyoyev and Chinese President Xi Jinping agreed on cooperation in the fight against COVID-19 and intensifying collaboration in trade and investment in their phone conversation on May 7, 2020.They said the mutual support and humanitarian assistance provided to each other during the most difficult period of the pandemic were evidence of the strengthening partnership based on the principles of friendship, mutual respect and trust.
At the annual Shanghai Cooperation Organization (SCO) summit held virtually in November 2020, Uzbek and Chinese leaders confirmed the proximity or similarity of the positions of their countries on the challenges of ensuring security and sustainable development in the vast SCO space.
The Uzbek president paid his first state visit to China in May 2017 after assuming office, and the two leaders identified priority areas of cooperation for the coming years. New points for strengthening cooperation were identified in their meeting on the sidelines of the Second Belt and Road Forum for International Cooperation in Beijing in 2019.
Economic foundation
Thanks to the joint efforts, the impact of the pandemic on bilateral cooperation was mitigated to the greatest extent possible in 2020.Though in 2020, there was a slight decrease in bilateral trade due to COVID-19, over the past three years, China has remained Uzbekistans largest trading partner. Before the pandemic, bilateral trade increased by an average of 30-40 percent annually.
China also remains Uzbekistans largest export market. According to official statistics, in 2020, Chinas share in Uzbek foreign trade was 12.8 percent.
There is a qualitative change in the structure of mutual trade turnover. Primarily, this is due to an increase in the volume and items of Uzbek finished products and agricultural goods supplied to the Chinese market.
Also, cooperation in investment and modern technologies, designed to accelerate technological modernization and diversification of the Uzbek economy as well as increase its export potential, is becoming intensive. Chinese investment in Uzbekistan has grown annually between 40 and 50 percent.
Connectivity cooperation
The pandemic has a major impact on the global economy and trade, disrupting production chains and trade links. At the opening of the Third China International Import Expo in November 2020, Mirziyoyev said Uzbekistan highly appreciates Xis new strategic course aimed at ensuring stability in trade, eliminating trade barriers, and strengthening interconnectivity of the economies of different countries.
Today, it is important to combine efforts to strengthen regional and interregional connectivity by forming a network of dry ports, logistics and wholesale distribution centers within the framework of the Belt and Road Initiative.
One result of the joint work was the opening of the China-KyrgyzstanUzbekistan multimodal transportation corridor in 2017, running from Lanzhou, capital of Gansu Province in northwest China, to Uzbek capital Tashkent through Kyrgyzstan. In June 2020, railway services started in the corridor, with the first container train flagged off from Lanzhou.
Cooperation between local governments is also a new driver for the Uzbek-Chinese partnership. From 2017 to early 2020, the leaders of all 14 regions of Uzbekistan visited various provinces and major cities in China. Agreements have been signed for more than 150 joint projects, especially enterprises making export-oriented finished products.
Besides, agreements have been reached on cooperation in education and training of professionals in demand in sectors such as smart agriculture and technologies, seed production and water management.
New areas
New challenges require new solutions. Chinas successful experience in the fight against COVID-19 has created conditions for fruitful cooperation in this area.In his address to the Uzbek Parliament, President Mirziyoyev has said special attention will be paid to healthcare. Continuing the fight against COVID-19 will remain among Uzbekistans most important tasks in the year. The digitalization of medical services will be expanded, including remote services and the introduction of online work in polyclinics and hospitals. He proposed to develop cooperation with China in telemedicine in November 2020.
Another new area of cooperation is poverty reduction. China has achieved its poverty reduction goal and absolute and regional poverty has been eliminated.
The main goal of Uzbekistans economic reforms in 2021 will be to reduce poverty and increase peoples wellbeing. Comprehensive approaches and new methods will be introduced, including social security, education and health, access to clean drinking water, energy resources and road infrastructure.
Working contacts have been established between the interested ministries and departments of Uzbekistan and China. It is expected that they will adopt a plan of joint activities for the coming years. BR
