China’s investment in Kyrgyzstan surges, focusing on mining, manufacturing

Foreign direct investment (FDI) from China to Kyrgyzstan has seen a sharp rise over the past decade, reaching $2.1 billion in the first half of 2025, up from $826 million in 2016, according to the Eurasian Development Bank. Kyrgyzstan now accounts for 5.8 per cent of China’s investment portfolio in Central Asia.

The bulk of Chinese investment is concentrated in the mining and manufacturing sectors. Notably, a major “green” initiative is underway with the construction of a solar power plant in Balykchy. The project is financed through a combination of Chinese investors’ own capital and borrowed funds, supported institutionally by Kyrgyzstan’s Green Energy Fund, Caliber.Az reports via Kyrgyz media. 

Strategic infrastructure projects are also a focus of Chinese investment. The China-Kyrgyzstan-Uzbekistan railway, in which China holds a 51 percent stake through China Railway International, is expected to receive $3.53 billion in Chinese funding.

In addition, China plans to establish the Xinjiang Dacheng Yuanlong Technology coal logistics center in Kyrgyzstan’s southern Osh region, further expanding its footprint in the country.

By Sabina Mammadli