Central Asia and the Middle Corridor: Japanese interest

Despite the ambiguous political relations between Japan and China, Japan has recently demonstrated a heightened interest in the countries through which the Middle Corridor traverses from China to Europe, most notably the states of Central Asia (Turkestan). This interest is understandable, as the construction and development of the Middle Corridor infrastructure necessitates the utilisation of modern technologies, machinery and equipment, which Japanese corporations are well-positioned to provide.

Central Asia is a resource-rich region with a population exceeding 80 million and a dynamic economic development. It represents an attractive investment destination for Japanese businesses. However, the competition in traditional markets, such as the European Union and South-East Asia, is intensifying. Japan is seeking new promising markets, particularly along the route from East Asia to Europe.
On 9 August 2024, the inaugural C5+Japan Business Forum was convened in Astana, the capital of Kazakhstan. The forum brought together representatives of five Central Asian states and over 100 leading Japanese companies and organisations operating in key sectors of the economy. The forum coincided with the official visit to Kazakhstan on 9-10 August 2024 by Japanese Prime Minister Fumio Kishida, as well as the Sixth Consultative Meeting of Heads of State of Central Asia, which also took place on 9 August 2024.

In total, more than 350 companies from Kazakhstan, Kyrgyzstan, Turkmenistan, Tajikistan, Uzbekistan and Japan participated in the C5+Japan Business Forum. The event constituted a significant stride towards the enhancement of collaboration between Japan and the countries of the Central Asian region in the realms of technology and innovation.

During the course of the forum, a number of significant agreements were reached, with companies from the countries of Central Asia and Japan collectively signing 22 cooperation documents. The agreements were concluded in a number of sectors, including energy and ecology, transport and logistics, digitalisation, education, mechanical engineering, medicine and tourism.

Of note is the Memorandum of Understanding signed by the Ministry of Digital Development, Innovation and Aerospace Industry of the Republic of Kazakhstan and the Japanese company Challenge and Lead at the forum. This document establishes the basis for close collaboration, which will facilitate the participation of IT professionals from Kazakhstan in training and internship programs in Japan.
In addition to the development of IT systems in Japan, Challenge and Lead is actively engaged in the training and employment of IT specialists from countries such as South Korea, Uzbekistan and Mongolia. The signed Memorandum paves the way for new opportunities for Kazakhstani specialists to enhance their expertise and apply it in international projects.

Furthermore, the forum addressed pivotal matters pertaining to the deployment of artificial intelligence technologies, the construction of data centres and the assurance of cybersecurity. It was observed that collaboration in these domains has the potential to considerably reinforce the positions of Central Asia and Japan in the global market, creating opportunities for mutually advantageous partnerships and further technological advancement.

It has been reported that the entrepreneurs in attendance expressed confidence that the forum's outcomes will provide a new impetus for the further strengthening of cooperation between Central Asia and Japan, to promote economic growth and sustainable development in the region.
There is mounting evidence that Japan is developing an increased interest in the countries of historical Turkestan (Central Asia). In light of the developments in transit along the Middle Corridor and the corresponding infrastructure that is being created, it seems reasonable to suggest that Japanese business and investors will have a similar interest in the countries of the South Caucasus, which are also part of the same Middle Corridor. The development of the countries of the South Caucasus is largely synchronous with that of the countries of Central Asia. This allows us to posit the possibility of attracting Japanese investment to the Caucasus region.


Vladimir Tskhvediani
Azerbaijan-Georgia-Turkiye Strategic Partnership Information Support Centre

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