China Strengthens Presence in Kazakhstan
In recent weeks, China has significantly expanded its economic presence in the energy-rich Central Asian nation of Kazakhstan, where a number of countries including India and the United States have in the past few years been in a scramble for a share of its vast resources of oil and gas.
In the last couple of months, through the acquisition of oil companies by State-owned enterprises, the extension of a 3,000-km oil pipeline and a number of “loan for oil” deals, China has seemingly strengthened its grip over the country’s energy resources.
On Thursday, the Xinjiang-based Guanghui Industry company received approval from China’s top economic planning body, the National Development and Reform Commission, to acquire a 49 per cent stake worth $40.5 million in a Kazakh oil company. This will allow the company develop oil and gas fields in the Zaysan region.