Tashkent, Uzbekistan (UzDaily.com) — Uzbekistan’s Deputy Minister of Investments, Industry, and Trade, Elzod Kasimov, stated that Chinese investors do not pose a threat to the country.

According to him, unfounded rumors are circulating in the national information space, claiming that Chinese companies are allegedly “seizing” Uzbek land. He emphasized that such assertions, based on one-sided interpretations, can create distorted perceptions of the country’s investment policy.

Kasimov noted that attracting foreign investment is a key condition for stable economic development and improving citizens’ welfare. Uzbekistan’s investment policy is built on the principles of transparency, economic feasibility, and long-term sustainable development. The country has established an equal and transparent investment environment for both local and foreign investors.

He stressed that all investors, regardless of their country of origin, enjoy equal rights and privileges under Uzbekistan’s Law “On Investments.” Their activities are regulated by national legal frameworks and are subject to state and public oversight.

The deputy minister also reminded that, in addition to China, South Korea, Russia, Türkiye, EU countries, and the UAE actively invest in Uzbekistan’s economy.

Over the past three years, 50% of Chinese investments have been directed toward local industry, 12% into heavy industry, 11% into the fuel and energy sector, 4% into agriculture, with the remaining portion distributed across other sectors.

Elzod Kasimov pointed out that half of China’s investments in Uzbekistan are focused on developing local industries, reflecting a systematic approach to cooperation with all investing nations. The main priority in attracting foreign investment is the development of industrial production, increasing output, and enhancing export potential.

According to him, investments in local industries contribute to the development of small and medium-sized businesses, particularly in the textile, construction, pharmaceutical, electrical engineering, and leather-footwear industries. This, in turn, expands production, creates new jobs, and increases tax revenues.

Uzbekistan is home to more than 7,600 textile and knitwear enterprises, which last year produced industrial goods worth 123.2 trillion soums. Of this, 57% consisted of high-value-added products. However, enterprises owned by Chinese investors account for only 57 companies.

Additionally, there are 120 textile clusters in Uzbekistan, established with the participation of companies from Russia, India, South Korea, Singapore, Türkiye, the United States, and China.

Kasimov noted that Chinese companies, like other investors, create thousands of jobs for the local population. In particular, several projects have been implemented in the textile sector with Chinese capital:

Jinsheng Group invested US$115 million in the LT Textile International cotton-textile cluster, creating 700 jobs.

Mulanhua Group invested US$33.2 million in textile enterprises Nanyang M&F and Bobur M&F, providing 450 jobs.

Chang Liang invested US$5.5 million in Chang Liang Textiles, creating 120 jobs.

Hebei Evershine Textile invested US$3.7 million, ensuring 100 jobs.

Uzbek textile enterprises export their products to China through three trading houses: Nanyang Red Cotton Angel Textile FE, Posso International Textile FE, and Vodiy Toshloq Textile.

Elzod Kasimov emphasized that cooperation with China plays a crucial role in developing Uzbekistan’s industry by expanding production capacities, introducing advanced technologies, training specialists, creating national brands, and entering global markets.

"Uzbekistan has historically held an important place in global agriculture. However, at present, the agricultural sector accounts for only 4% of Chinese investments. To effectively utilize China’s advanced expertise, foreign investors are allocated low-yield and undeveloped lands, with the obligation to improve their fertility and implement modern water-saving technologies," the deputy minister noted.

As an example, he cited Lihua Group, which is implementing projects on cotton cultivation and seed production in Kashkadarya and Tashkent regions. For these purposes, land plots with limited water resources and low productivity have been allocated.

Kasimov reminded that under Uzbekistan’s Land Code, foreign investors do not have the right to own land and can only lease it for up to 25 years. Moreover, land leases are granted exclusively through open auctions, where the winner is determined based on the best offer. This system ensures transparency in the investment process, competitiveness, and the protection of national interests.

"Therefore, claims that Chinese companies are allegedly 'seizing' Uzbek land are completely unfounded," the deputy minister stressed.

According to him, China is actively transferring advanced technologies to Uzbekistan, implementing digital solutions and eco-friendly innovations that significantly contribute to modernizing domestic industries.

At the same time, enterprises established with Chinese capital primarily employ local workers, while only highly qualified specialists and engineers are invited from China. This facilitates the transfer of knowledge and enhances the skills of Uzbek professionals.

"A prime example is BYD. At the electric vehicle plant in Jizzakh Region, built with the company's participation, approximately 1,500 jobs have been created, with the vast majority of employees being local specialists. In 2024, around 200 Uzbeks underwent training at Chinese BYD facilities, improving their qualifications," Kasimov noted.

Speaking about the development of the energy sector, the deputy minister emphasized that Uzbekistan is actively moving toward the implementation of alternative energy sources. This year alone, the country will commission solar power plants with a total capacity of 2.7 GW, wind farms with a capacity of 752 MW, small hydropower plants with 169 MW, and energy storage systems with 1.4 GW.

"China is a global leader in the production of solar power equipment and wind turbines. Given this, Uzbekistan is actively cooperating with leading Chinese corporations that enjoy international recognition. Currently, more than 20 major energy projects worth over US$9 billion are being implemented. As part of these initiatives, China sends top managers and engineers, but the majority of workers are Uzbek specialists," Kasimov emphasized.

He also noted that progress cannot be ignored, and as the world's largest producer of high-tech products, China has remained a reliable partner of Uzbekistan for many years.

"Cooperation with China brings significant benefits to our country," he concluded.

At the same time, Kasimov emphasized that Uzbekistan's national interests always remain a priority when signing investment agreements and implementing projects. Each contract aims to strengthen the economy, create jobs, enhance the competitiveness of local enterprises, and improve the quality of life for citizens.

"In this regard, we urge citizens to critically assess unreliable information circulating on social media and rely on expert opinions when forming views on various issues," concluded Uzbekistan’s Deputy Minister of Investments, Industry, and Trade.