Olzhas Bektenov meets leading Chinese companies in Shanghai: $2.5bn agreements signed

Prime Minister of the Republic of Kazakhstan Olzhas Bektenov as part of a working visit to the People's Republic of China took part in the Kazakh-Chinese investment roundtable with business representatives. In the city of Shanghai will hold talks with the Premier of the State Council of the PRC Li Qiang, scheduled to participate in the VII China International Import Exhibition.

The main purpose of the working visit is to implement the agreements reached between the President of Kazakhstan Kassym-Jomart Tokayev and the President of the People's Republic of China Xi Jinping on doubling the volume of bilateral trade turnover from the historical record of last year at the level of $41 billion.

The round table was attended by representatives of companies that are leaders in metallurgy, energy, machine building and automotive industry, carbon chemistry, agribusiness, pharmaceuticals and others. The Kazakhstan delegation was represented by the heads of relevant ministries and large domestic enterprises.

Prospects for the development of joint projects in priority sectors of the economy were considered. The participants of the meeting noted that trade and economic partnership between Kazakhstan and China is on the rise. Today about 5 thousand joint ventures are successfully operating in Kazakhstan.

Among the major joint Kazakh-Chinese projects are the construction of a plant for the production of soda ash together with Camc Engineering, the Sastobe chemical complex with Tianjin Cement Industry Design and Research Institute and a plant for the production of explosives with Yunnan Industrial Explosive Group. The construction of the CHANGAN, HAVAL, CHERY automobile production plant with a 90,000-unit capacity based on small-unit assembly is nearing completion. An Investment Agreement for the production of Geely, Exeed, KAIYI passenger cars for $150 million with the creation of 1,000 jobs has also been signed. The projects make it possible to create technological enterprises capable of producing high-quality domestic products. These indicators, according to the business communities of the two countries, confirm the sustainability and productivity of bilateral partnership.

The head of the Government of the Republic of Kazakhstan noted that joint work in this direction continues, and the existing potential of trade relations demonstrates the prospects for further diversification of trade turnover and expansion of investment cooperation.

"Today the cooperation between our countries is developing on an upward path. In accordance with the task set at the highest level, we intend to double our mutual trade indicators in the near future. Kazakhstan and China have huge potential for the realisation of joint investment projects. Together we can open new horizons for interaction and increase the effectiveness of cooperation. To this end, we should actively work to expand transit opportunities, strengthen industrial cooperation and build ties between our business communities. The Government of Kazakhstan is ready to expand partnerships and build strong bridges between our nations. We will provide support to investors, creating favourable conditions for business and contributing to the success of each project. I am convinced that thanks to our joint efforts, new investment initiatives will give a powerful impetus to the development of the real sector of the economy, its diversification and improvement of the quality of life of our citizens," Olzhas Bektenov said.

Prime Minister stressed that an important priority for the country is the development of industry and urged Chinese companies to closer partnership with the Kazakhstani business community.

In turn, during the dialogue, representatives of leading Chinese companies showed interest in Kazakhstan as a reliable partner for the implementation of strategic projects.

Executive member of the Board of Directors of China Huadian Corporation Zu Bin in his speech reported on the expansion of cooperation with Kazakhstan in the field of energy, including emissions reduction; acting CEO of CHN Energy Investment Yan Guochun informed about plans to launch the first coal-chemical complex in Kazakhstan; Chairman of the Board of Directors of Beijing Jianlong Heavy Industry Group Zhang Zhixiang about the development of cooperation in the steel industry; Chairman of the Board of Directors of Zijin Mining Group Chen Jinghe reported on plans for the implementation of projects in the region of Kazakhstan.

Vice President of CP Pharmeceutical Group Xie Lei on investment in the creation of a cluster in the field of medicine; General Director of Beiqi Foton Motor Wu Xibin on localisation of production in the automotive industry in the Republic of Korea; Chairman of the Board of Directors of ACRE Engineering Consulting Company Yang Zhuni informed on cooperation in the field of technology transfer; General Director of Sinotruk International Zhao Hua informed on plans to localise production of high-quality automotive trucks in the Republic of Korea.

Chairman of the Board of Directors of Darwin Biotech Co., Ltd. Chen Jianheui shared his intentions to expand cooperation with Kazakh partners in the field of crop production; Chairman of the Board of Fujian Hengwang Investment (metallurgy) Zeng Zhaojiang reported on plans to implement an industrial project in Zhambyl region.

During the visit to the office of SenseTime, the Kazakh delegation was presented with new solutions and equipment used in smart and safe city projects.

As a result of the meeting, 8 commercial agreements totalling $2.5bn were signed.

Agreement on cooperation between Samruk-Kazyna Invest LLP, QAZAQGAZ AIMAQ JSC and Goldcard Smart Group Co., Ltd. in the field of implementation of smart systems for the amount of $8 million. The project involves small-node assembly of gas meters on the territory of FEZ PIT ‘Alatau’ in Almaty from components supplied by GoldCard, taking into account the localisation of components;
Agreement between Qarmet JSC and Zhengzhou Coal Mining Machinery Group in the field of production of equipment for coal industry on purchase of mechanised complexes for mines of the coal department of Qarmet JSC for the amount of $70 mln;
Memorandum of Understanding on establishing the framework for investment cooperation between the Ministry of National Economy of the Republic of Kazakhstan, China State Investment Fund Silk Road Fund Co.Ltd. and Kazakhstan Investment Development Fund (KIDF) Management Company Ltd. for the amount of $552 million;
Agreement between Qarmet JSC and Xinxing Ductile Iron Pipes Co., LTD on construction of a plant for production of high-strength cast iron pipes with spheroidal graphite with a capacity of 200 thousand tonnes per year in the Republic of Kazakhstan for the amount of $161 million. The products are intended for projects on construction, modernisation, reconstruction, expansion and renovation of facilities of the housing and communal system of the Republic of Kazakhstan;
Agreement between Qarmet JSC and China Metallurgical Group Corporation to establish long-term and comprehensive cooperation in the mining and metallurgical industries for the amount of $1 billion;
Agreement between Qarmet JSC and ACRE Coking & Refractory Engineering Consulting Corporation on implementation of the strategic project on modernisation of coke-chemical production and development of coal chemistry for the amount of $649 mln;
Agreement between Qarmet JSC and Nanjing Fiberglass Research & Design on construction of a factory for production of mineral insulation from blast furnace slag in Temirtau for the amount of $30 million, with a capacity of 100 thousand tonnes of finished products per year and creation of 200 new jobs;
A package of agreements between Saran Machinery LLP and Sinotruk International on cooperation in distribution and assembly of KDs, technology licensing and use of trademarks for the amount of $70 million. Among them is a Memorandum on the implementation of a project in Saran for the production of cargo and special-purpose machinery, under which it is planned to create about 1,000 new jobs in the future.

In the city of Shanghai, Olzhas Bektenov also visited the “Valley of Robots” of the scientific city of Zhangjiang, where he familiarized himself with the latest achievements of the Chinese robotics industry in the spheres of healthcare, industry and service. Currently, more than 80 Chinese and foreign robotics enterprises operate in this science and technology center. A wide range of robots, including humanoid robots, are presented. The areas of their application are expanding: from helping in households and ensuring order in public places, to the fields of medicine, education, industry, research, rescue work, logistics, etc., to the development of robots.

Prime Minister instructed the Ministry of Digital Development, Innovation and Aerospace Industry to establish cooperation with the Chinese side in order to study the experience of the “Valley of Robots” and its further application in Kazakhstan.

During the visit to the office of SenseTime company, the Kazakh delegation was presented new solutions and equipment used in projects of smart and safe city.

https://primeminister.kz/en/news/olzhas-bektenov-meets-leading-chinese-companies-in-shanghai-25bn-ag...