Chinese investors pose no threat to Uzbekistan, says ministry – But is that really the case?

China remains one of the largest investors in Uzbekistan’s economy, and attracting foreign investment is a key driver of the country’s sustainable economic growth, Deputy Minister Ilzat Kasimov emphasized.

According to Uzbekistan’s investment policy, all investors, regardless of their country of origin, operate under equal conditions in accordance with the law.

"Besides China, Uzbekistan actively attracts investments from Saudi Arabia, the UAE, Turkey, Russia, France, Germany, Japan, and many others. This proves that the country does not rely on a single partner but instead diversifies its sources of capital," Kasimov stated.

He claimed that over the past three years, most Chinese investments have been directed toward industry rather than agriculture or land resources.

"One of the key sectors receiving Chinese investment is the textile industry. Uzbekistan currently has more than 7,600 textile enterprises producing goods worth 123.2 trillion soums annually. Of these, only 57 companies have Chinese capital, which means their share in the sector is insignificant," he added.

It was also noted that only 4% of Chinese investments go into agriculture. Additionally, foreign investors in Uzbekistan are not allowed to purchase land outright — they can only lease it for a maximum of 25 years through open auctions.

China is also actively investing in automobile manufacturing and the production of equipment for solar and wind power plants.

"The majority of Chinese investments go into industry, technology, and energy. Land is not transferred to foreign investors as property. Moreover, the primary workforce in these projects consists of Uzbek citizens. Cooperation with China brings technology, investment, and new jobs," the ministry concluded.

Critical take

While the ministry attempts to downplay concerns, the growing influence of Chinese businesses in Uzbekistan is undeniable. Despite claims of balanced foreign investment, Chinese companies are increasingly leasing large facilities, dominating industries, and leveraging soft power through extensive advertising, cultural events, and strategic partnerships. The numbers provided may suggest a minor role, but on the ground, the Chinese presence is becoming ever more visible, raising legitimate concerns about economic dependency and long-term national interests.