WHAT EMOMALI RAKHMON IS GIVING TO CHINA FOR DEBTS?

Since October of last year, Western and Russian media have periodically reported on China’s military expansion in Central Asia. In this context, Tajikistan is given special attention. There is the only Chinese military base in the region located in this country, and a second one may appear soon. How did China manage to turn this poor post-Soviet republic into its military satellite, and how did this happen? We will try to answer this question in this issue.

Territory in exchange for loans

Emomali Rahmon realized that it was beneficial to befriend China when the Middle Kingdom was just beginning to gain economic power. During his first foreign visit to Beijing in March 1993, Emomali Rahmon made persistent attempts to obtain economic assistance from China. However, the leadership of that country linked this issue to the resolution of territorial disputes inherited from the Soviet Union. In total, the parties spent eight years to resolve this issue, and during all this time, pragmatic Beijing did not provide the war-torn Tajikistan with a single cent of economic aid. Understanding the principle of relations with the Chinese, Emomali Rahmon’s government effectively betrayed national interests by conceding over one and a half thousand square kilometers of land, or one percent of the total territory of the republic, to Beijing. Only after this did China grant Rahmon access to loans.

Debt noose

As of today, Tajikistan’s total debt to China exceeds 1.2 billion dollars – this is about 40 percent of the republic’s total external borrowings. Almost half of this money was borrowed from the state Export-Import Bank of China. The conditions and interest rates under which they were provided are carefully concealed by the Tajik government. However, judging by the intergovernmental agreements approved in parliament, it can be understood that Beijing receives control over Tajikistan’s natural resources in exchange for loans. For example, currently, 90 percent of the gold mined annually in Tajikistan is produced by Chinese mining companies. In addition, this year China also took control of antimony production in Tajikistan. The republic ranked fifth in the world in the export of this raw material, producing almost 6,000 tons per year. Besides natural resources, Beijing is also trying to take control of aluminum production in Tajikistan. In the past, the Chinese side wanted to gain control over the largest aluminum plant in Central Asia, Talco, in exchange for an investment of 500 million dollars. However, the matter did not go beyond signing a memorandum.

Political loyalty

In exchange for loans with investments, China benefits from Tajikistan’s political support. For example, the republic is part of a group of countries that support Beijing’s repressive policies against the Muslim population of Xinjiang. In addition, the official Tajikistan is accused of handing over ethnic Uighurs, persecuted by Beijing, to Chinese authorities. For this, human rights organizations are trying to hold Tajikistan accountable in the International Criminal Court in The Hague. However, for its political loyalty, Beijing decided to reward Dushanbe with multi-million dollar grants. Thus, in 2019, China allocated 350 million dollars as a grant for the construction of new buildings for the parliament and government residence.