By Masom Jan Masomy and Eldaniz Gusseinov
Among external stakeholders, China bears the heaviest cost from the ongoing Afghanistan-Pakistan tensions along the Durand Line. The conflict erodes Beijing’s credibility as a regional mediator on the dispute-resolution front, even as its short-term containment record remains defensible. Both Afghanistan and Pakistan continue to depend on Chinese economic engagement, and both are seeking to expand investment flows from Beijing. China has hosted at least seven formal rounds of the China-Afghanistan-Pakistan Foreign Ministers’ Dialogue, its primary platform for structured mediation between the two countries and has intervened repeatedly with emergency shuttle diplomacy during acute crises, most recently during the open military confrontation.

Photo by Crystal51, 2015
BACKGROUND:
For a state positioning itself for a more influential role in the emerging global order, mediation has become a core instrument of strategic projection. This ambition found formal expression in Beijing’s May 2025 white paper, “China's National Security in the New Era.” Released by the State Council Information Office on May 12, the document represents the first dedicated national security policy statement since the founding of the People’s Republic. Its opening chapter frames China as a source of certainty and stability in a turbulent world, and the same self-positioning runs throughout the text. By tying political security to international order within a single "holistic" framework, with economic development as the connecting axis, Beijing presents its own internal stability and modernization as stabilizing forces for the broader international system. The Afghan-Pakistan file is currently the closest test of that framing on China’s periphery.
The results have been limited. China has not resolved the underlying disputes between Afghanistan and Pakistan, and each failed mediation round makes the next one harder to frame as credible. Experts generally agree that Chinese mediation acts as a “band-aid” over structural wounds. The long-term drivers of hostility remain untouched: Islamabad’s demand that the Taliban crack down on TTP safe havens, and the historically unrecognized Durand Line that sits beneath nearly every bilateral grievance. Strategic distrust between Kabul and Islamabad has only hardened since 2021. On short-term crisis containment, however, Beijing’s record is defensible. It pulls both sides back from open war and keeps communication lines open, with the promise of the Belt and Road Initiative (BRI) used as an economic incentive to buy time, even when this does not produce durable agreements. For Beijing, short-term containment is “good enough” provided it prevents a regional collapse that threatens Chinese investments.
Pakistan’s declaration of “open war” on Afghanistan in late February 2026 produced significant civilian casualties across the country. On March 16, Pakistani airstrikes hit the Omid Addiction Treatment Hospital in Kabul. Afghan officials placed the death toll at approximately 400 patients, a figure that has not been independently corroborated. Human Rights Watch verified at least 143 killed and over 250 injured. Islamabad denied intentionally targeting the facility. By April 5, Taliban officials reported cumulative civilian casualties of 761 killed and 626 injured since late February, figures the United Nations has not fully verified. Prior to the hospital strike, UNAMA had documented 76 civilian deaths and 213 injuries from clashes beginning on February 26 and called for compliance with international humanitarian law.
The most recent mediation round, hosted by China in Urumqi, did not yield a permanent ceasefire between Kabul and Islamabad. It did, however, halt active kinetic conflict and keep further negotiation tracks open. Earlier mediation attempts by Qatar and Turkey, with parallel engagement from Saudi Arabia, sought to reduce escalation. Afghanistan and Pakistan have nonetheless experienced their most serious deterioration in relations since the Taliban seized power in 2021. Major trade routes at Torkham and Spin Boldak have remained closed since the October 2025 clashes, disrupting bilateral trade flows.
IMPLICATIONS:
Tensions between Afghanistan and Pakistan stem largely from Islamabad’s claim that the TTP operates from Afghan territory and conducts attacks inside Pakistan. Kabul’s immediate rejection of this claim has strained the bilateral relationship since August 2021. The unresolved dispute undermines Pakistan’s capacity to control its borderlands and opens space for non-state armed groups to regroup in remote border regions, a development that also concerns regional neighbors.
In this context, China’s mediation efforts stem from deeper structural stakes, linking border security and regional connectivity. For China, any instability or rise in militant mobility across the narrow Wakhan corridor or in the Pak-Afghan region raises long-term security questions. This issue is critical to China’s implementation of transportation projects across Eurasia. Discussions between China and Central Asian states also covered the potential integration of transport projects, including proposals to connect the China-Kyrgyzstan-Uzbekistan railway, currently under construction, with Uzbekistan’s proposed Trans-Afghan railway. Under this configuration, the combined route would originate in Kashgar and, via Afghanistan and the CPEC, terminate in Gwadar. The result is a ring of Chinese influence spanning Central and South Asia. China would be positioned to integrate high-tech production supply chains along this corridor.
In such a situation, the Islamic State of Khorasan Province (ISKP) may reorganize and reestablish itself across the Afghanistan-Pakistan region. Its propaganda has consistently identified Chinese assets as legitimate targets. The early-2026 suicide bombing at a Chinese-run restaurant in a district of Kabul reinforced these security concerns. Separately, an armed assault using grenades dropped from drones killed five Chinese nationals and injured five others near the Afghan-Tajik border in December 2025. The pattern suggests that militant groups may be finding operational space along the porous Afghan-Tajik frontier from which to threaten Chinese interests across Central Asia.
Beijing is concerned that groups such as ETIM and ISKP may exploit periods of confrontation between Kabul and Islamabad. When Afghanistan-Pakistan tensions rise, militant activity in Khyber Pakhtunkhwa and Balochistan tends to increase, generating a volatile environment for Chinese personnel and CPEC-related projects.
To strengthen border security, China has established three new counties within a year. The He'an and Hekang counties sit near the disputed Ladakh border with India, and the newly formed Cenling county lies close to Afghanistan’s Wakhan Corridor and Pakistan-administered Kashmir. The administrative restructuring is designed to expand border surveillance and constrain the movement of anti-China Uyghur militants through Xinjiang's porous frontiers. Strategically, the move tightens governance over Kashgar in Xinjiang, the urban anchor for both the Wakhan corridor and the CPEC Karakorum Highway.
CONCLUSIONS:
While South Asia and the Middle East are experiencing heightened military confrontations that strain international peace, China addresses these crises through diplomatic engagement and economic cooperation. Its official statements emphasize de-escalation through restraint rather than coercion. Diplomatic brokering between Afghanistan and Pakistan offers potential strategic advantages for Beijing at both regional and global levels. The limits of this approach, however, are visible. Following the Urumqi negotiations, border skirmishes resumed, with Pakistani strikes hitting Kunar province on 27 April 2026.
By combining formal trilateral platforms with quieter shuttle diplomacy, China positions itself as central to regional crisis management and as a hedge against the regrouping of transnational terrorist networks. The Afghanistan-Pakistan case nonetheless demonstrates that economic incentives alone are insufficient to produce durable settlements between parties locked in active confrontation.
AUTHOR’S BIO:
Masom Jan Masomy is an Assistant Professor and Deputy Director at the Regional Studies Centre of the Afghanistan Science Academy in Kabul. His work focuses on South and Central Asian affairs with a particular emphasis on Afghanistan and on the dynamics of great power politics across the wider Central and South Asian regions. His research interests span political and economic developments, security and migration, climate change, diplomacy, and regional connectivity. Email: This email address is being protected from spambots. You need JavaScript enabled to view it. . Eldaniz Gusseinov is Head of Research and co-founder at the political foresight agency Nightingale Int., and a non-resident research fellow at the Haydar Aliyev Center for Eurasian Studies of Ibn Haldun University, Istanbul. Email: This email address is being protected from spambots. You need JavaScript enabled to view it. .
By Anatoly Motkin
In late April 2026, Tencent - the Chinese technology conglomerate behind WeChat - completed the acquisition of a 3.2 percent stake in Kaspi.kz, Kazakhstan's dominant super app, at approximately US$ 518 million. Just months earlier, Tencent led a financing round in Uzum, Uzbekistan's first tech unicorn, lifting the startup's valuation to US$ 1.5 billion and opening the door for the Chinese giant to enter Central Asia's digital economy. Taken together, these two moves constitute something far more consequential than routine investment decisions. They represent the arrival of Chinese digital power at the heart of post-Soviet Eurasia and Washington has yet to formulate a coherent response.

Photo by Pixels Hunter, 2020
BACKGROUND:
Kaspi.kz is not a typical fintech startup. In Kazakhstan, it operates as a powerful super app that integrates payments, e-commerce, and consumer services into a single platform, commanding roughly 75 percent of digital payments and nearly 89 percent of e-commerce activity in its home market. Critically, the platform seamlessly integrates payments, online commerce, fintech services, travel, classifieds, and access to government services, meaning it is directly plugged into state administrative databases. Similarly, Uzum in Uzbekistan combines e-commerce with fintech and banking services, touching millions of citizens’ financial and transactional lives daily.
The strategic logic of Tencent's acquisitions is straightforward. The investments align with strengthening economic ties between China and Kazakhstan, where Chinese investors are already backing 224 industrial projects valued at an estimated US$ 66.4 billion. But the digital dimension of this relationship is qualitatively different from physical infrastructure. When a company like Tencent acquires a meaningful stake in platforms that mediate the daily financial, commercial, and civic transactions of tens of millions of people, it gains something invaluable: structured, real-time access to population-scale behavioral data.
This is not an abstract concern. China has developed a data governance architecture predicated on domestic security, in which the party-state enjoys extensive data access power over domestic big tech companies. Under China’s National Intelligence Law of 2017, any Chinese organization or citizen must support, cooperate with, and collaborate in national intelligence work. There is no meaningful legal firewall between a Tencent minority stake in a Central Asian super apps and the Chinese state’s appetite for foreign data.
Large datasets about local populations can be transferred to China under conditions where weak local regulation provides little protection. The cautionary tale is well documented: Huawei’s provision of digital infrastructure for the African Union headquarters in Addis Ababa was later found to have been transferring server contents to Shanghai every day for five years. Central Asian governments should study this precedent carefully.
Tencent’s fintech plays are only the most visible thread of a much broader Chinese digital expansion across the region. Huawei has been deeply embedded in Central Asian telecommunications networks for over a decade, building 4G and 5G backbone infrastructure across Kazakhstan, Uzbekistan, Kyrgyzstan, and Tajikistan. The company is scaling its open source platforms OpenHarmony and openEuler to accelerate what it calls ”digital sovereignty” across Central Asia, deploying the language of sovereignty while consolidating its own architectural control over the region’s digital nervous system. Meanwhile, Alibaba Cloud has established data center operations in the region, and Chinese e-commerce platforms increasingly intermediate cross-border trade flows between China and its Central Asian neighbors under the Belt and Road Initiative.
Beijing’s Digital Silk Road initiative promotes the development of transnational network infrastructure and aims to enhance information connectivity across BRI countries - and Central Asia sits squarely at the geographic core of this project. Chinese technologies increasingly mediate social, political, and economic activities in recipient countries, creating layered dependencies that are difficult to unwind once established.
IMPLICATIONS:
The data sovereignty implications are severe. Super apps connected to government service portals do not merely capture consumer preferences, they capture identity verification records, tax filings, property registrations, healthcare interactions, and travel histories. For an intelligence service, this is not commercial data. It is a population census updated in real time.
Central Asian governments have begun to sense the risk. Kazakhstan has enacted data localization requirements. Uzbekistan has been strengthening its cybersecurity regulatory framework. But regulatory intent and enforcement capacity are very different things, particularly when the investment relationship itself creates structural dependencies and political incentives for governments to look the other way.
What can the U.S. offer as an alternative? The answer lies not in prohibition, Washington cannot tell sovereign governments whom to accept investment from, but in competition and capacity-building. Three lines of effort are essential.
First, the U.S. and its partners should actively promote alternatives in the fintech and digital infrastructure space. American and European venture capital has largely ignored Central Asia. The region’s digital markets are growing rapidly, and the vacuum left by Western investors is being filled by Chinese capital on terms that suit Beijing’s strategic interests. The U.S. International Development Finance Corporation (DFC), established during President Trump’s first term and granted expanded authorities in 2025, and its European counterparts should prioritize co-investment in Central Asian digital platforms, with data governance conditions attached.
Second, Washington should expand the Pax Silica framework, the emerging U.S.-led digital technology alliance, to explicitly address data security standards for countries in the region. Establishing clear criteria for trusted digital investment, analogous to the Clean Network initiative for 5G but adapted for the fintech and super app era, would give Central Asian governments a positive framework to reference when evaluating foreign stakes in systemically important digital platforms.
Third, the U.S. government should invest in building Central Asian regulatory capacity on data governance, cybersecurity auditing, and foreign investment screening in the digital sector. Technical assistance programs through the State Department’s Digital Connectivity and Cybersecurity Partnership and bilateral cooperation agreements can help governments develop the institutional tools to assess the risks embedded in transactions like Tencent's acquisition of Kaspi.kz - before the deal is done, not after.
CONCLUSIONS:
China’s digital expansion into Central Asia is not accidental. It is a deliberate, coordinated strategy executed through commercially rational transactions that each, individually, appear benign. The Tencent–Kaspi deal will be reported as a fintech investment. The Uzum funding will be celebrated as a startup success story. But viewed in aggregate and in strategic context, they represent the systematic acquisition of data leverage over populations that sit at the intersection of China’s continental ambitions and America’s competitive blind spot. Washington needs to start paying attention, and start competing, before the architecture of Central Asia’s digital future is set in Beijing.
AUTHOR’S BIO:
Anatoly Motkin is President of StrategEast Center for a New Economy, a leading independent institution advancing digital economy in developing countries, in collaboration with international financial institutions, development agencies, global tech companies, and governments.
By Nargiza Umarova
This article addresses the geopolitical and economic dynamics surrounding the development of the Wakhan Corridor as a potential trade route connecting Afghanistan and China through the high-altitude Wakhjir Pass. It highlights the Wakhan Corridor’s competitive advantages over the China-Pakistan Economic Corridor and analyses the risks and challenges posed by political instability, security threats, and infrastructural limitations in the region. It also examines China’s cautious stance, Tajikistan’s interest, and broader implications for regional connectivity. The primary objective is to evaluate the feasibility of the Wakhan Corridor, its comparative advantages over existing trade routes like CPEC, and its potential implications for regional connectivity. By examining these aspects, the paper seeks to analyze how the corridor could influence the geopolitical and economic landscape of Central Asia, Afghanistan, and China. In this context, the following analysis delves into the intricacies of the Wakhan Initiative, assessing its inherent risks and opportunities, while evaluating its potential for successful implementation.
By Sudha Ramachandran
A recent attack by the Islamic State of Khorasan Province (ISKP) on a Chinese restaurant in a supposedly secure district in the Afghan capital, Kabul, is a setback for the Taliban regime. Not only was it an embarrassment to the regime as it laid bare its limited capacity to provide foolproof security to foreign nationals; it is also likely to have drawn the ire of the Chinese, who have promised investment in Afghanistan. Other countries keen on investing in Afghanistan will have taken note.

BACKGROUND:
A suicide attack in a Chinese restaurant in Kabul’s Shahr-e-Naw district on January 19 claimed the lives of seven people, including a Chinese Muslim man, who co-owned the restaurant with his wife and an Afghan partner. The others killed in the attack were Afghans. Over a dozen people, including a Chinese national, were injured in the explosion. Claiming responsibility for the attack, the ISKP warned that it “has placed Chinese nationals on its target list, especially in light of the increasing crimes committed by the Chinese government against the persecuted Uyghur Muslims.” Chinese nationals reportedly frequented the Kabul restaurant that was attacked. The bomber aimed to cause maximum Chinese casualties; according to the ISKP statement, he waited for a large number of Chinese to enter the restaurant before he blew himself up.
The ISKP has been targeting China both in its propaganda and violence for several years. ISKP propaganda slams China’s persecution of Uighur Muslims. Its criticism of China’s policies and actions in Xinjiang is primarily aimed at drawing Uighur Muslims in the region into its fold. ISKP often calls on Muslims to take up arms against “red atheists whose hands are soaked with the blood of innocent Uyghur Muslims.” The ISKP has also targeted Chinese nationals and interests abroad, including the kidnapping and killing of two Chinese teachers in Quetta in Pakistan’s Balochistan province in 2017. ISKP attacks targeting Chinese nationals in Afghanistan include the January 2022 suicide bombing outside the Foreign Ministry building in Kabul, minutes ahead of the arrival of a Chinese delegation; the December 2022 attack on the Kabul Longan Hotel, which is frequented by Chinese businessmen, that left at least five Chinese nationals injured; and the January 2025 killing of a Chinese mining worker in Takhar. The targeted killing of Chinese nationals working in mines in Tajikistan has surged in recent months, although it is not clear whether the ISKP carried out these attacks.
Since the Taliban captured power in Kabul in August 2021, China’s role in Afghanistan has grown significantly. Chinese investment in the Afghan economy, particularly in the mineral sector, has grown. Such investment provides the internationally isolated Taliban regime in Kabul with much-needed funds and serves to help it consolidate control over power in Afghanistan. The ISKP’s targeting of Chinese nationals in Afghanistan is likely aimed at prompting Beijing to rethink its collaboration with the Taliban, the ISKP’s sworn enemy, and withdraw investments from the Afghan economy.
IMPLICATIONS:
Reports, including from the United Nations, from last year have stated that ISKP attacks have declined both in frequency and scale. ISKP propaganda publications have also fallen in frequency. They rarely provide new content, and often regurgitate topics and articles previously published. It is possible that the ISKP’s recent attack in Kabul on January 19 and the targeting of a Shia Mosque in Islamabad on February 6 were aimed at signaling that it remains a potent jihadist group. However, it may be too early to conclude that the ISKP is on the path of revival and resurgence, since the two major attacks this year were on soft targets. Yet, the fact that the ISKP was able to target a Chinese restaurant in the Shahr-e-Naw neighborhood cannot be dismissed lightly as this is a tightly guarded area of the Afghan capital.
UN reports have been pointing out that terrorist groups like al-Qaida, ISKP and Tehreek-e-Taliban continue to operate from Afghanistan, a claim that the Taliban regime has often rejected. The January 19 attack reveals that at a minimum, the ISKP is present in Afghanistan, and remains a clear and present danger even in Kabul. This punches holes in the Taliban’s oft-repeated claims to prospective foreign partners that Afghanistan is safe for investment, and that their nationals are secure here, laying bare the fragility of these security guarantees. This is a major embarrassment and setback to the Taliban, which can be expected to further intensify operations against the ISKP in the coming days. The Taliban has been collaborating closely with China to crack down on Uighur Muslims living in Afghanistan and the regime can be expected to double down on them, especially since they form an important component of the ISKP’s fighting cadre.
The January 19 attack in Kabul can be expected to prompt a strong response from the Chinese government. Although there were few Chinese nationals among the casualties in the restaurant attack, the fact that the bomber was able to enter a restaurant and areas reportedly secured by Chinese guards will rattle Beijing. It will raise the issue of security for its nationals and interests in Afghanistan with the Taliban regime and has already issued advisories to its nationals travelling to and living in Afghanistan. Yet while the Chinese government can be expected to step up pressure on the regime in Kabul, China is unlikely to throw in the towel with regard to investment in Afghanistan. Other countries that are looking to enhance their role in Afghanistan, for example India, will have taken note of the still unstable security environment in the country. They will be cautious in deciding on investments and taking on infrastructure-building activities in Afghanistan.
For the ISKP, the January 19 attack on the Kabul restaurant brings mixed returns. Although the attack may not have resulted in many Chinese casualties, it has given the ISKP the propaganda boost it was looking for. This will enhance the group’s image, especially in jihadist circles. It also served to roil relations between Beijing and the Taliban regime, while the ISKP can expect a boost to its recruitment efforts. However, the group can also expect to increasingly be in Beijing’s crosshairs.
CONCLUSIONS:
The ISKP attack on a Chinese Muslim restaurant in Kabul has once again turned the spotlight on the jihadist group. While it may not signal a revival of the ISKP’s flagging image and declining capacity, it will serve to boost morale and recruitment of fighters. Importantly, it is a major setback for the Taliban regime’s credibility and for its relations with China, its most important international partner. While the attack may not prompt Beijing and Chinese businesses to review their decision to invest in Afghanistan or revise their investment strategies in the country, more such attacks, especially on hard targets and those that damage Chinese infrastructure could prompt China to go slow or scale down investment in Afghanistan. However, such a rethinking is not imminent.
AUTHOR’S BIO:
Dr Sudha Ramachandran is an independent South Asian political and security analyst. She is also South Asia editor at The Diplomat. Her articles have appeared in publications like The Diplomat, Asia Times, China Brief and Terrorism Monitor.
By Syed Fazl-e-Haider
China is reshaping Central Asia’s nuclear energy sector, challenging Russia’s long-standing dominance in the region. In September 2025, Uzbekistan explored a contingency agreement with China National Nuclear Corporation (CNNC), amid concerns that the contract signed in June with Russia’s state-owned nuclear monopoly, Rosatom, for the construction of nuclear power units might face delays. While Rosatom leads the consortium responsible for building Kazakhstan’s first nuclear power plant, CNNC has emerged as the principal alternative competitor. Under current plans, CNNC would assume a leading role in the construction of Kazakhstan’s second and third nuclear power plants.

BACKGROUND: Nuclear energy has been a central instrument through which Russia has sustained its presence in Central Asia. Experts argue that nuclear power projects tend to create long-term dependencies for host states, particularly when nuclear energy constitutes a significant share of national electricity generation. Such projects also entail security risks, including the potential for sabotage. A 2023 study on Russian nuclear energy diplomacy published by the Norwegian Institute of International Affairs notes that “Central Asia has a special place in Russian nuclear energy diplomacy because of the post-Soviet heritage, meaning that Rosatom’s operations in the region are easier and smoother than elsewhere.”
Moscow’s invasion of Ukraine in February 2022 intensified Russia’s diplomatic isolation, undermining its dominance in Central Asia’s nuclear energy sector. As a sanctioned and increasingly isolated Russia gradually loses its influence in the region’s nuclear landscape, Beijing is capitalizing on the opportunity to secure new clients for its nuclear reactor technology.
During a visit to Uzbekistan in 2018, Russian President Vladimir Putin signed an agreement with Tashkent for the construction of a 2.4-gigawatt nuclear power plant, valued at approximately US$ 11 billion. However, the project failed to progress as planned and was revised in 2024, when the two sides concluded a new agreement for a facility comprising six small reactors, each with a capacity of 55 megawatts (MW).
In June 2024, Russia concluded an agreement with Uzatom to carry out a feasibility study on constructing a nuclear power plant comprising two to four VVER-1000 reactors in Uzbekistan. In 2023, Kyrgyzstan held discussions with Rosatom on a small nuclear power plant with a capacity of 110 MW. However, the talks failed to progress after Bishkek lost interest.
In June 2025, Kazakhstan announced the selection of Rosatom to lead the construction of the country’s first nuclear power plant. In a separate statement, however, Astana also confirmed that CNNC would head the development of the country’s second nuclear facility. In August 2025, Kazakhstan’s First Deputy Prime Minister Roman Sklyar further stated that CNNC would also lead the construction of the country’s third nuclear power plant. In September 2025, Uzbekistan’s nuclear agency, Uzatom, unveiled an upgrade plan for its two small nuclear reactors (RITM-200N), scheduled for completion by 2030, and for two large nuclear units (VVER-1000) by the mid-2030s. By pursuing a multi-vector diplomatic strategy, Uzbekistan has signed nuclear energy agreements with both Russia and China.
China’s nuclear energy cooperation in Central Asia is expanding rapidly. In September 2025, Beijing–Tashkent nuclear cooperation featured prominently in a meeting between Uzbek President Shavkat Mirziyoyev and Shen Yanfeng, Chairman of CNNC, held on the sidelines of a Shanghai Cooperation Organization (SCO) summit in China. Following the Mirziyoyev–Yanfeng meeting, new mining agreements valued at US$ 5 billion, including a uranium mining deal, were announced.
IMPLICATIONS: Energy-constrained Central Asian states, such as Kyrgyzstan and Uzbekistan, have looked to Rosatom, the world’s leading constructor and exporter of nuclear reactors. International sanctions imposed on Russia over its war in Ukraine have cast uncertainty over Rosatom’s future. As a result, Russia’s clients in Central Asia are increasingly turning to China as an alternative partner for nuclear energy cooperation. It was against this backdrop that Tashkent, in September 2025, discussed a contingency agreement with China for the construction of nuclear power plants, supplementing a deal signed with Rosatom in June 2025. While Kazakhstan’s first nuclear power plant is being built by Russia, China is set to lead the construction of the country’s second and third nuclear facilities.
China’s growing involvement in the nuclear energy sector is significantly eroding Russia’s long-standing dominance in the region. CNNC has emerged as a strong competitor to Russia’s Rosatom in nuclear projects in Uzbekistan and Kazakhstan, as both Central Asian states expand their nuclear energy programs.
CNNC is posing strong competition to Russia’s Rosatom on cost considerations in nuclear energy projects. For Kazakhstan’s first nuclear power plant, CNNC sought to attract Kazakh authorities by proposing the construction of two nuclear units with a combined capacity of 2.4 gigawatts at a cost of US$ 5.47 billion, a significantly lower bid. The comparatively lower cost of Chinese nuclear reactors gives China a competitive advantage over Russia in Central Asia, where affordability is a critical factor in ensuring the financial sustainability of host countries.
China’s policy of sharing nuclear technology and granting host countries full control over the nuclear fuel cycle emphasizes energy independence in states developing nuclear power projects. This approach is particularly attractive to Central Asian countries and gives China a competitive advantage over Russia. In Kazakhstan, for example, this policy aligns with Astana’s long-term objective of reducing dependence on external powers in the nuclear energy sector, and CNNC has offered technology transfer along with full control of the fuel cycle. By contrast, Russia follows a model that retains control over fuel supply and requires the repatriation of spent fuel for the duration of a plant’s operation in non-nuclear states.
Faster delivery timelines are another factor that make China more attractive to Central Asian countries than Russia in nuclear energy projects. Chinese companies typically complete nuclear power projects in seven years or less, whereas Rosatom generally requires between six and nine years to construct nuclear reactors.
Despite China’s competitive advantages in cost and delivery speed, Chinese nuclear projects involve technical and environmental risks. China does not provide Central Asian states with a long-term, reliable solution for radioactive waste management. Consequently, in the absence of advanced and transparent safety protocols, safety concerns remain a major obstacle to China’s nuclear ambitions in the region.
In September 2025, Almassadam Satkaliyev, Chairman of Kazakhstan’s Atomic Energy Agency, emphasized the importance of ensuring safe operations at nuclear facilities. He stated that Kazakhstan would continue to develop the nuclear fuel cycle, from uranium mining and nuclear fuel production to electricity generation at nuclear power plants, while strictly adhering to the country’s international obligations regarding the peaceful use of nuclear energy.
CONCLUSIONS: Despite international sanctions imposed in response to the war in Ukraine, Russia is making concerted efforts to maintain its influence over nuclear energy projects in Central Asia. However, sanctions have increasingly eroded Russia’s primary source of leverage, nuclear cooperation, allowing China to challenge Moscow’s long-standing dominance in the region’s nuclear energy sector.
China’s nuclear power initiatives are poised to solidify its long-term strategic influence in Central Asia. These projects necessitate decades of engagement through fuel supply chains, technology transfer, and sustained operational oversight.
China is reshaping Central Asia's nuclear landscape by leveraging cost competitiveness, technology transfer, and expedited project timelines to erode Russia's traditional dominance in energy cooperation. However, despite these advantages, concerns persist regarding China’s comparatively lax safety standards.
AUTHOR’S BIO: Syed Fazl-e-Haider is a Karachi-based analyst at Wikistrat. He is a freelance columnist and the author of several books. He has contributed articles and analysis to a range of publications. He is a regular contributor to Eurasia Daily Monitor, Jamestown Foundation. Email: This email address is being protected from spambots. You need JavaScript enabled to view it. .
The Central Asia-Caucasus Analyst is a biweekly publication of the Central Asia-Caucasus Institute & Silk Road Studies Program, a Joint Transatlantic Research and Policy Center affiliated with the American Foreign Policy Council, Washington DC., and the Institute for Security and Development Policy, Stockholm. For 15 years, the Analyst has brought cutting edge analysis of the region geared toward a practitioner audience.
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