2. Chinese Economic presence in Kazakhstan

2.1 Short review of bilateral trade

Principles of friendly relations between the Republic of Kazakhstan and the People’s Republic of China." Within 20 years were formed principles and legal basis of mutual relations development. There were signed about 200 documents on bilateral cooperation in political, economic spheres, and also in the security and cultural cooperation field.

Economic presence and interest of China in Kazakhstan have considerably increased recently. In general, the main economic interests of China in Kazakhstan are:

1. Obtaining the access to oil and gas sources in order of ensuring China’s energy security. In recent years, the growth of Chinese economy has increased domestic energy demand, therefore, sharply increased the import volume of oil and petroleum products. Growing Chinese economy, in particular, its western areas demand new energy sources which can be imported from Kazakhstan on mutually advantageous conditions. 2. Use of transport-communication potential of Kazakhstan for promotion of the Chinese goods on the western markets. 3. Enhancement of bilateral trade, the development of Kazakhstan’s consumer market.

Shaping of the Kazakh-Chinese relations can be divided into four stages:

1. The first stage — since 1991 till April, 1996. The period is characterized by the development of bilateral relations. There were established relationships in the field of foreign policy, which were developed through the establishment of diplomatic relations and mutual visits at the high governmental levels; at that time economic, trade, security cooperation was steadily developing, have been achieved a mutual understanding in areas related to the prohibition of nuclear weapons use. 2. The second phase began with the signing by China, Russia, Kazakhstan, Tajikistan, Kyrgyzstan in Shanghai «Agreement on Confidence Building in the military field and the mutual reduction of armed forces in the border area» it were marked as an agreement of the Shanghai Five. Thus, the Kazakhstan-China relations have entered to a new period of bilateral and multilateral relations parallel development. Intergovernmental relations meant a granting guarantees for strengthening mutual cooperation. 3. The third stage. In 2005, Chinese President Hu Jintao and our President N. A. Nazarbayev signed a Declaration of strategic partnership between the two countries. The Chinese side reaffirmed that it will continue cooperation with Kazakhstan through the frameworks of the SCO and CICA. 4. The fourth phase. Since 2011, countries established relations of «comprehensive strategic partnership», expanded energy, transport and communication cooperation.

The economic cooperation between China and Kazakhstan. Economic and trade relations between China and Kazakhstan are developing on a basis of advanced contractual base, which includes more than 30 documents. The great value for progress in this sphere has an activity of the Kazakh-Chinese intergovernmental commission on trade and economic cooperation. Furthermore, each visit of Kazakh and Chinese politicians to Astana and Beijing usually results to new arrangements in the sphere of trade. [7]

The trade value between China and Kazakhstan reached a record high of 17.6 billion U.S. dollars in 2008, exceeding the strategic target of more than 15 billion U.S. dollars in 2015 set by the leaders of the two countries ahead of schedule. The bilateral trade value exceeded 20 billion U.S. dollars in 2010, accounting for more than 70 percent of the total trade value between China and Central Asia and representing more than 50 times that of the early period after the establishment of the diplomatic ties between the two countries. China has become Kazakhstan's largest trade partner and Kazakhstan is China's second largest trade partner among the Commonwealth of Independent States.[8] Le Yucheng, Chinese Ambassador to Kazakhstan claims that Chinese-Kazakh bilateral trade turnover amounted to $25.6 billion in 2013. [9 ] It is expected that the volume of the trade turnover will exceed $ 40 billion in 2015.

Table 1. Chinese-kazakh Trade at a glance