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China shows strong interest in investing in Uzbekistan’s small industrial zones focused on leather and manufacturing

During a recent official visit of the Uzbek government delegation to China, discussions were held between Akbar Sultanov, chairman of the “Uzcharmsanoat” Association, and leaders of the China Leather Industry Association, highlighting prospects for expanding bilateral cooperation in the leather processing sector.

The talks focused on advancing joint investment projects and deepening cooperation within small industrial zones specialized in leather production, located in key Uzbek regions such as Fergana, Andijan, Tashkent, and Jizzakh. These industrial hubs attracted particular interest as promising platforms for Sino-Uzbek collaboration.

Representative Lu Hua emphasized, “Uzbekistan is a strategic partner for Chinese companies due to its rich raw materials, manufacturing potential, and advantageous geographical location. Direct cooperation within small industrial zones is especially important.” The Uzbek side provided detailed information on these zones, underscoring their suitability for joint ventures.

Discussion also covered opportunities for importing Chinese high-tech equipment, production lines, and specialized materials with the intention of subsequent localization in Uzbekistan, reflecting the country’s ambition to integrate advanced technologies into its manufacturing base amid escalating global competition in the processing industry this year.

The year 2025 presents heightened challenges as countries like Vietnam, India, and Bangladesh aggressively forge partnerships with China. Against this backdrop, Uzbekistan aims to strengthen its industry’s global position through technological integration and by leveraging its strategic partnership with Chinese industry leaders.

The China Leather Industry Association represents over 1,000 enterprises and exports products exceeding 10 billion dollars annually. Collaboration with this association could thus be instrumental for Uzbek producers seeking access to the largest world markets.

Broader investment outlook and strategic ties

This new engagement builds on the broader surge of Chinese investments in Uzbekistan, exceeding 10 billion dollars in 2024 alone, and reflects growing joint efforts to develop industrial zones, infrastructure, and high-tech sectors. Discussions in Tashkent earlier this year emphasized strengthening financial cooperation, including credit arrangements in national currencies, and promoting new industrial parks in Uzbek regions.

Uzbekistan’s openness and favorable investment climate have attracted nearly 2,000 Chinese enterprises across sectors from cement to manufacturing, logistics, and real estate. Notably, Chinese companies have committed hundreds of millions of dollars to cement plant construction and special economic zones, benefiting from the strategic geographic location and relatively friendly local sentiment towards Chinese investors.

Why this matters for international business in furniture, construction, and manufacturing

The deepening cooperation between Uzbekistan and China, particularly through specialized industrial zones, opens tangible prospects for international companies engaged in furniture manufacturing, construction materials, and interior/exterior design sectors. The import and localization of Chinese high-tech equipment and materials signal a clear trajectory toward modernization of production capabilities, which can lower costs, improve quality, and ramp up scale.

For foreign investors and suppliers, Uzbekistan’s regional industrial hubs present well-organized platforms for joint ventures, facilitating access to Central Asian markets and beyond. The leather sector serves as a strategic entry point, but the ripple effects extend into other industries, supported by enhanced infrastructure and government incentives.

Moreover, Uzbekistan’s alignment with China under initiatives like “One Belt One Road” offers a stable and integrated framework for trade and investment, reducing risks related to logistics and regulatory uncertainty. This environment enables international players to consider Uzbekistan not just as a production base but also as a gateway for expanding their footprint across the rapidly developing Central Asia macroregion.

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