The volume of accumulated foreign direct investment (FDI) from China in Kyrgyzstan increased from $826 million in 2016 to $2.1 billion as of the first six months of 2025, according to analytical data on the structure of Chinese investments in Central Asian countries, Akchabar.kg reports.
Kyrgyzstan’s share in China’s regional FDI portfolio rose to 5.8%, up from 4.2% in 2016, indicating a strengthening of China’s investment presence in the country’s economy. At the same time, an acceleration in capital inflows has been recorded from 2022 through the first half of 2025, with the total investment portfolio expanding by nearly 1.8 times.
The sectoral structure of Chinese FDI in Kyrgyzstan remains concentrated in the extractive and manufacturing industries. The raw materials sector accounts for 34% of investments (around $722 million), with an average annual growth rate of 4.5% over 2016–2025. Meanwhile, manufacturing makes up 37% of the investment portfolio (approximately $780 million) and demonstrates faster expansion rates.
“This reflects a gradual shift from a resource-based model toward the localization of production facilities in Kyrgyzstan,” experts from the Eurasian Development Bank (EDB) note.
In 2024–2025, the key green project involving Chinese capital has been the construction of a solar power plant in Balykchy on the shore of Lake Issyk-Kul. The project is being implemented using the Chinese investor’s own funds and borrowed resources, with institutional support from the Green Energy Fund under the Government of Kyrgyzstan.
A strategic infrastructure project remains the China–Kyrgyzstan–Uzbekistan railway, implemented with the participation of China Railway International. China holds a 51% stake in the joint venture, and the total volume of Chinese investment is estimated at $3.53 billion. Of this amount, $2.35 billion is being provided in the form of concessional loans by Chinese financial institutions. Construction officially began in December 2024, with the launch of operations expected by 2030.
The railway line, stretching over more than 500 kilometers, is expected to become an important transit corridor between China and markets in the Middle East and Europe. More than 300 kilometers of the route will pass through Kyrgyzstan.
The investment portfolio is also complemented by projects in logistics and environmental protection. In particular, the creation of a coal logistics center by Xinjiang Dacheng Yuanlong Technology is planned in Osh region, while in Bishkek a solid waste recycling plant project is being implemented with the participation of Hunan Junxin Environmental Protection.
Meanwhile, as of the end of July 2025, Kyrgyzstan’s external debt to the Export-Import Bank of China amounts to $1.58776 billion, accounting for more than 30% of the country’s total external debt.
CentralasianLIGHT.org
December 25, 2025