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Why, Foreign Minister Wang Yi was asked by Kyrgyz economic officials during his visit to Bishkek on May 22, did Beijing not consider relocating 40 or so manufacturing operations from China to Kyrgyzstan?
Economy Ministry officials cast the proposal as a win-win, reasoning that China would gain an important manufacturing base in Kyrgyzstan, while the Central Asian nation would benefit from the revival of idle industrial capacity. A Chinese entrepreneur, who asked to be identified only by her adopted local name, Medina, sells bath mats and other items at Zhonghai, a Chinese-run bazaar that is next to, but considered separate from, Dordoi proper. Since EEU membership, Medina has had to radically revise her business model.
Instead of bringing goods directly to Kyrgyzstan across the border in the southeastern Naryn region, it is more worthwhile for Medina to bring in items by railway from China to Kazakhstan through the Khorgos free economic zone. Even that has not been enough, however, and Medina is importing half of the amount that she used to. If things do not pick up, she might be forced to leave Kyrgyzstan altogether, she said.
But news within the EEU is hardly much better. Entrepreneurs say customs bureaucracy and the devalued currencies of fellow bloc members, especially Russia and Kazakhstan, have combined to weaken export potential. We started working at 6 am and were able to sell almost everything by midday. Chinese investment in revitalizing industry would notionally inject energy into this dismal picture.
Still, given a legacy of difficulties, officials tread carefully when talking about development joint projects with Beijing. Many of the troubles are connected to job creation and wages. In the town of Kara-Balta, local residents have protested against the environmental impact of China-backed Zhongda oil refinery when it was under construction in One recurring issue is that foreign companies are perceived as not hiring enough local staff.