(Yicai) Nov. 9 -- Kazakhstan, a strategic hub along the ancient Silk Road, attended the seventh China International Import Expo which ended yesterday, with the theme “Digital Silk Road,” to pursue deeper integration with China in areas such as e-commerce, logistics and cross-border investment.

Kazakhstan's national postal operator QazPost showcased its digital connectivity push that features several strategic partnerships with Chinese logistics giants and the firm is hoping to attract more.

"We have opened a joint venture company with courier company YTO Express, cutting home delivery times to 10 days from the previous three weeks, and early next year we hope to have a similar arrangement with e-retailer JD.com," Diana Nazarbayeva, head of QazPost’s international business development, told Yicai.

As Kazakhstan’s largest postal and logistics services operator, QazPost is actively facilitating e-commerce tie-ups with major Chinese e-retailers such as AliExpress, Pinduoduo, and Temu, in order to offer a full service from order placement to customs clearance and delivery, said Nazarbayeva.

Kazakhstan has geographical connections and bilateral agreements with other countries such as Uzbekistan, Azerbaijan and Armenia and this will help its Chinese logistics partners, she added.

Investment Support

The Export Credit Agency of Kazakhstan is rolling out targeted support for Chinese investors. "Not only do we support exporters, but we can also support projects with Chinese investment in Kazakhstan," said Armana Bekbassova, head of the agency’s international cooperation department.

"We can provide specific financial solutions for companies that intend to set up new export-oriented sites in Kazakhstan,” Bekbassova said. “For instance, we can support deferred payments and we can mitigate risks for foreign buyers when they make advance payments."

Chinese companies that are interested in exporting to Kazakhstan, can seek information on the platform KazakhInvest, which is responsible for attracting foreign investment and which can give guidance on areas such as suitable production sites for different projects, she added.

Growing Hub

The Astana International Financial Center has emerged as a crucial bridge for Chinese investors. "There are a lot of Chinese delegations coming to the AIFC to seek opportunities, to see how they can do business and how they can invest through our financial center. Overall, the trend is increasing, especially from the Chinese side," said Temir Sembinov from the AIFC's global partnerships division.

The AIFC operates under a unique English common law framework, offering investors enhanced protection through its independent court and arbitration center, said Sembinov, who attended the CIIE for the first time and who said that he was impressed by the people and by the level of hospitality that he experienced.

The center hosts over 3,200 firms, of which Chinese companies rank second in number. These include 11 major financial institutions such as China Construction Bank and China Development Bank.

The AIFC offers substantial tax benefits, including zero VAT, corporate income tax, personal income tax for non-residents, and tax waivers on dividends, capital gains, land, or property. The center serves as a "single window" for foreign investors, providing comprehensive guidance from initial consultations to connecting with key stakeholders in Kazakhstan.

"We really look forward to seeing more Chinese business, both financial and non-financial, in Kazakhstan, and especially through our financial center," Sembinov added.

Burgeoning Trade

Fifty companies from Kazakhstan attended this year’s CIIE, the largest participation to date. Local specialties such as dairy products, grains, meat products, confectionery and wine were on show across a 600-square-meter display area.

Trade between the two nations soared over a hundred times last year from 1992 to USD41 billion. Chinese investment in its neighbor jumped 16.4 percent last year from the year before, and amounted to an aggregate USD25.3 billion over the 18 years from 2005 to 2023.

Editor: Kim Taylor