Investment Strategies of China and Turkey in Central Asia: Comparative Analysis

Abstract

Central Asia has become a major destination for foreign investment, owing to its strategic location, role in regional trade, and abundant natural resources. Russia, China, and Turkey are among its most active investors. Against this backdrop, this article analyzes the investment policies of China and Turkey and identifies key qualitative differences between their investment models. Particular attention is paid to the specific mechanisms and conditions for attracting investment in the region. The methodology combines a review of annual reports and statistical data from relevant government authorities and statistical agencies in the national languages of China, Turkey, Kazakhstan, Uzbekistan, Tajikistan, Kyrgyzstan, and Turkmenistan. These data are used to identify the factors driving fluctuations in Chinese and Turkish investment in the region. A comparative approach is then used to examine similarities and differences in the investment policies of Beijing and Ankara. The findings indicate that the two countries may increasingly compete strategically in Central Asia, as their engagement is driven not only by economic interests but also by ideological and value-based agendas and platforms, including the Belt and Road Initiative and the Organization of Turkic States. The analysis reveals both similarities and differences between Chinese and Turkish investment strategies. While the two models overlap in terms of the sectors targeted for investment, they differ in their underlying approaches: the Chinese model is more strongly oriented toward state-led infrastructure projects, whereas the Turkish model is more diversified and combines institutional, commercial, and humanitarian engagement. The findings can inform Russia’s foreign policy and international economic engagement in Central Asia by identifying priority areas, emerging policy trends, and promising projects.