Today.Az » World news » China to invest $ 300 million in cotton processing in Tajikistan
07 March 2019 [14:26] - Today.Az
By Abdul Kerimkhanov
Strengthening and developing bilateral relations of friendship and cooperation with China is one of the priorities of Tajikistan’s foreign policy. Meanwhile, China is also very interested in the Central Asian region as a whole.
China State Machinery Industry Construction Group Inc will help to raise $ 300 million for the development of the textile industry in Tajikistan.
A delegation of Chinese businessmen under the leadership of the trade manager of China Machinery Industry Construction Group Inc Hu Sina met with Nematullo Hikmatullozoda, Minister of Economic Development and Trade of Tajikistan on March 5.
At the meeting, it was noted that the Chinese state corporation will assist the “Shino Tajikistan Kulyab Textile Industry Park” enterprise in attracting foreign direct investment for processing cotton fiber.
This enterprise is located on the territory of the newly formed Kulyab free economic zone, the press service of the Ministry of Economic Development and Trade reports.
It is expected that investment in this enterprise will be carried out in two stages. At the first stage, financing will be $ 130 million, and at the second - $ 170 million.
It is planned to create 5,500 jobs at the enterprise, the annual processing of cotton will be 35,000 tons.
The resolution on the establishment of the Kulyab FEZ was adopted by the Tajik Government at the end of February 2019.
Since 2008, four FEZs - “Sogd”, “Dangara”, “Pyanj” and “Ishkashim” have been operating in the republic.
Founded in September 1953, China Machinery Industry Construction Group Inc is the largest construction state corporation in China.
Until the middle of the 2000s, cotton was considered one of the two main export goods of Tajikistan (along with aluminum). In the 1980s, about 800,000 tons of cotton were harvested annually in Soviet Tajikistan.
At the same time, most of the cotton fiber produced in the country is exported as raw materials. The processing of these products within the country is insignificant.
Diplomatic relations between Tajikistan and China were established on January 4, 1992.
It was previously announced that it is planned to increase the foreign trade turnover of Tajikistan and China to $3 billion by 2020.