Financial and credit relations of Central Asian countries with China: risk factors

The article analyzes the financial and credit relations of Central Asian countries with China. It was revealed that China has become the main creditor and investor in the economies of all 5 Central Asian countries and plays a huge and every year increasing importance in the financial and budgetary systems of Central Asian countries, as well as in the real sector of the economies of the countries under consideration (primarily in the extractive industry), wholesale and retail trade. The article analyzes the scale of Chinese loans and investments in the economies of Central Asian countries and their role in the development of modern Central Asian republics. The study found that Chinese funds play a key role in the modern development of Central Asian economies and will determine the economic development of this region in the medium term. Among the most important positive consequences of the growth of the volume of Chinese loans and Chinese foreign direct investment for the economies of Central Asian countries, the author identified: the development of transport infrastructure in Central Asian countries, increased investment in industry (primarily mining), and the financial sector. Among the most important risks from the growth of Central Asian countries' creditworthiness on the part of Chinese borrowers were: the growth of economic dependence on the Celestial Empire of all the countries under consideration, with the risk of escalating into political dependence, as well as the increasing burden of credit and financial burden on the economies of Central Asian countries.