Soft power or land grab? Chinese investment raises alarm in Uzbekistan

Recently, the increasing presence of Chinese-language banners and advertisements in Tashkent has sparked discussions on social media. In the past few days, rumors have surfaced that Chinese investors are purchasing large plots of land in the capital. On March 6, the Cadastral Agency released a statement calling these claims baseless.

According to the agency, Article 17 of the Land Code stipulates that foreign individuals, foreign legal entities, stateless persons, and enterprises with foreign investments can only acquire land on a lease basis.

"Do not panic, thinking, ‘What if we lease the land and they privatize it? What happens then?’ There is no reason for concern. According to the Law on the Privatization of Non-Agricultural Land, foreign citizens, stateless persons, foreign legal entities, enterprises with foreign investments, as well as government agencies, institutions, enterprises, and self-governing bodies of citizens, are not eligible for land privatization. In other words, land cannot be privatized by foreign entities," the statement reads.

The agency has urged the public not to worry about agricultural land being privatized by foreigners.

"Even citizens of Uzbekistan themselves cannot privatize agricultural land.

"Therefore, claims that our lands are being handed over to foreign nationals are baseless and have been made without proper verification," the statement continues.

The Cadastral Agency also reminded the public that those spreading such misinformation could be held accountable under Article 202 (Part 2) of the Administrative Responsibility Code and Article 244 (Part 6) of the Criminal Code.

"In this regard, we urge our citizens not to fall for deception and ask social media users to refrain from spreading false and unfounded information," the agency stated.

Giving away land is like giving away life

Economist Otabek Bakirov has responded to the agency’s attempts to reassure the public by stating, "Giving away land is like giving away life." While dismissing various speculations, he emphasized that concerns regarding the allocation of land to foreigners must be properly understood.

"Indeed, the Land Code specifies that foreign individuals, foreign legal entities, stateless persons, and enterprises with foreign investments can only acquire land on a lease basis.

"However, in an increasingly complex global environment with new emerging challenges, this provision alone is not sufficient. Social sentiment will continue to be uneasy.

"In this regard, the next phases of the land reform that began in 2021 should include provisions requiring that if a foreign-invested enterprise applies for a land plot, at least 51% of its ownership should directly or indirectly belong to Uzbek citizens. Additionally, regulations should impose stricter restrictions on the lease of land plots by foreign legal entities and individuals," Bakirov wrote.

He further pointed out that many countries have strict regulations regarding foreign ownership of land, and such measures are a matter of national consensus. He dismissed concerns that land-related discussions could negatively impact Uzbekistan’s investment climate.

"A genuine investor coming to Uzbekistan is primarily interested in making a profit from their investments, not in acquiring land to become a landowner or build a land portfolio. Moreover, numerous other factors are negatively impacting the investment climate — not just for foreign investors but for Uzbek entrepreneurs as well. Addressing those factors would be more appropriate," he concluded.

Gold mines and enterprises

Earlier, in February 2024, it was reported that 31 mining plots in the Navoi region were sold via electronic auction for 25.1 billion UZS to allow prospectors to extract precious metals. Many of the investors in Navoi’s gold mining sector are Chinese nationals. Among the 12 companies granted rights to develop the 31 mining areas, the majority have at least one Chinese founder.

In response to public concerns, the Center for Subsoil Use stated that rumors of these mining plots being sold to Chinese investors were unfounded. The agency clarified that none of the companies investing in the gold mines are entirely owned by Chinese nationals.

Meanwhile, a separate incident in Tashkent raised additional questions. A group of Chinese individuals was seen raising various flags at Magic City Park, sparking speculation about a protest. The Ministry of Internal Affairs denied that it was a demonstration, explaining that it was a group run organized by Huawei employees. The ministry even suggested that local organizations should take inspiration from such events.

As of February 1, 2025, China ranked first in the number of foreign-invested companies operating in Uzbekistan. Over the past year, the number of Chinese companies in the country increased by nearly 43%, reaching a total of 3,467.