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How corruption in Kyrgyzstan put Chinese investments at risk

  • Chinese investors have struck deals with Kyrgyz partners, whose corruption has not only resulted in political unrest but also fuels anti-China sentiment on the ground, threatening the viability of Chinese projects

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A protester waves a Kyrgyz flag during a rally against the results of a parliamentary vote in Bishkek, Kyrgyzstan, on October 5. Photo: AP
Political unrest erupted in Kyrgyzstan, the mountainous nation west of China’s Xinjiang province, after a disputed parliamentary election on October 4. Anger over election rigging prompted a large demonstration in the capital’s city square the next day, when protesters set the parliament on fire.
Beijing watched calmly as different political fractions rushed to fill the power vacuum, knowing that no matter which political party ended up controlling the parliament, no member of the Kyrgyz elite, be they youth or religious leaders, would threaten what China is after in the country – Kyrgyz support against the separatist movement in Xinjiang.

By October 6, the situation had turned into a full-scale revolt – some people began to claim governmental titles while crowds seized state-owned companies and a number of large gold mines across the country, including two Chinese-operated fields.

This is not the first time this year that chaos in Kyrgyzstan has targeted Chinese investments. The Central Asian nation’s elite likes to sweet-talk the Chinese into investing in domestic projects to fill their pockets, but have little motivation to actually protect or see them through.

03:09

Kyrgyzstan annuls election result after violent protests, opposition claims power

Kyrgyzstan annuls election result after violent protests, opposition claims power

Earlier this year, a US$275 million Chinese-funded trade and logistics centre in At-Bashy, Naryn region, close to the Chinese border, was scrapped after thousands protested.

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