Magbat Spanov: "Artificial intelligence will fundamentally reshape all sectors of Kazakhstan's economy" - INTERVIEW
News.Az presents an interview with Magbat Spanov, Expert at the Institute for Innovative Economy and Professor at Al-Farabi Kazakh National University.
-What are the key achievements in China-Kazakhstan relations in February 2025, and how do they confirm the forecasts of a "golden period" of bilateral cooperation, as expressed by Xi Jinping and Kassym-Jomart Tokayev?
-Amid changes in global geopolitics and geo-economics, the significance of cooperation between neighboring countries naturally grows. Kazakhstan and China, as such nations, have seen their trade turnover surpass that between Kazakhstan and Russia for the first time last year. This milestone indicates that the cooperation initiated under the "Silk Road" initiative in the early 2010s is beginning to yield tangible results.
This is one important aspect. Another concerns the ongoing military conflict and tensions between Russia and Western countries, which have significantly altered transport and logistics routes. As a result, Kazakhstan has emerged as a vital corridor for the delivery of goods from China to Europe. This development is poised to play a crucial role in the country’s economic growth and stability.
This is why our presidents speak of a time when the efforts invested in developing the Middle Corridor and various transport and logistics systems will start to bring substantial benefits to both countries.
Furthermore, it is essential to consider that beyond the "Silk Road" and the Middle Corridor, Kazakhstan could play a significant role within the so-called "northern route," serving as a transit zone for the delivery of a range of goods to the western regions of China. This is particularly relevant given Kazakhstan's border with the powerful Xinjiang Uyghur Autonomous Region of China.
Kazakh President Tokayev and Chinese President Xi Jinping on May 17 in Xian. Photo credit: Akorda.
-Which specific initiatives signed at the Digital Almaty forum and the Kazakhstan-China business forum could have the most significant impact on Kazakhstan's economic and technological development in the coming years?
-It is evident that artificial intelligence will fundamentally reshape management structures and operational practices across all sectors of Kazakhstan's economy in the coming decades. The mining sector and digital technologies will be the primary beneficiaries of these changes. Thus, this is not only a critical direction for Kazakhstan but also for the global economy.
In this context, cooperation between Kazakhstan and China continues to expand actively. Immediately after the forum, an investment agreement was signed for China's investments in Kazakhstan's mining sector in the city of Pavlodar. The plan includes extracting metals, including rare earth elements, which are currently the focus of intense global economic competition.
This is a particularly interesting position: Kazakhstan is collaborating not only with China but also with many other countries in the field of rare earth metals. It is worth noting that certain technologies, inherited from the Soviet era, are still preserved in Kazakhstan. However, these technologies have not been sufficiently developed over the past 30 years.
Naturally, under the framework of the Digital Almaty forum and the development of digital technologies, all these areas will see active progress and continuous efforts.
-How might the introduction of a visa-free regime and the celebration of the Year of Chinese Tourism in Kazakhstan influence the development of cultural exchange and the tourism sector between the two countries in 2025?
-The abolition of visa requirements between Kazakhstan and China undoubtedly plays a positive role for both business and cultural interaction and cooperation.
Despite certain concerns within Kazakhstan's society about opening borders for such a short period and fears of a potential influx of Chinese labor into the Kazakh market, these apprehensions have proven unfounded and more like baseless scare stories.
The increase in trade turnover between Kazakhstan and China is directly linked to the introduction of the visa-free regime. This move not only fosters economic cooperation but also strengthens cultural and political ties between our countries.
Considering that Kazakhstan is not a buffer state between, for instance, the western part of Russia and Central Asia, its role in regional politics and economics will only continue to grow.
Moreover, the existence of visa-free regimes with both Russia and neighboring Central Asian countries enables Kazakhstan to build more flexible and effective economic relations. This instills optimism and allows for a positive outlook on the future of bilateral cooperation.
Port of Baku. Photo credit: portofbaku.com
-What are the prospects for increasing transit shipments via the Trans-Caspian International Transport Route (TITR), and what role could Azerbaijan play in this process?
The Trans-Caspian International Transport Route extends from China through Kazakhstan, across the Caspian Sea, Azerbaijan, Georgia, and Turkey, and then via Black Sea ports to Europe.
This route is multimodal, involving multiple countries and two types of transport: rail and sea. Naturally, such a format of transportation entails certain costs. However, the route is constantly being optimized and improved. In this context, Kazakhstan places significant importance on cooperation with Azerbaijan, considering Azerbaijan a key point for cargo delivery.
To clarify, goods traveling from China or Central Asia through Kazakhstan are transported by sea and unloaded not in Georgia, as many might assume, but primarily in Azerbaijan. This is why Azerbaijan occupies a central position for Kazakhstan within the Middle Corridor.
Moreover, Kazakhstan has adopted a specialized transport program aimed at further developing transport infrastructure and increasing freight volumes along this route. This program pursues two main objectives: 1) increasing the volume of transported goods; 2) reducing transportation costs.
At this stage, transportation costs are already approaching the level of maritime shipping costs. It is evident that the higher the volume of shipments, the lower the costs, making goods transported via this route more competitive.
In my view, Kazakhstan and Azerbaijan play crucial and significant roles within the Middle Corridor, ensuring the efficient delivery of goods to new markets. Therefore, cooperation between our countries is mutually beneficial and should continue for the benefit of both states and their citizens.
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