Why China Transfers Production To Kazakhstan

Why China Transfers Production To KazakhstanOn the eve of the G20, which will be held in the Chinese city of Hangzhou, which is now on a visit, Nursultan Nazarbayev, has learned from government sources to move the production capacity of the plant 51 from China to Kazakhstan, which means that further economic and political expansion of the Chinese capital. This once again confirms the country’s neo-colonial status, and the ruling elite is trying to gain political and military support for Beijing in the beginning of the process of establishing the country’s system of dynastic succession of power.

The fact that such a project will be implemented, unveiled the newspaper “Kazakhstanskaya Pravda”, referring to the words of Prime Minister Karim Massimov. “Kazakhstan fully supports the program proposed by China, on the transfer of production capacity in the territory of Kazakhstan. We are talking about the transfer of power non-resource sectors of dozens of companies and billions of dollars of investment. This will be a good start, which subsequently can be transferred to other countries – members of the SCO, “- said on behalf of all the people, Karim Masimov.

It is no coincidence that this statement was made by Karim Massimov, since it was he who led the negotiations on all the Chinese investment on new joint agricultural projects, the sale of state-owned assets of mining companies, and mining is a special representative of Nazarbayev on Relations with Beijing. Naturally, it performs the common will of the ruling family, as the focus on the China market and is now a strategic priority for Acorda in recent years.

Kazakhstan as a result of this policy turns into a source of raw materials China’s growing industry. True before, it was on the export of raw materials, industrial crops and arable farm in Xinjiang Uygur Autonomous Region and the lease of land Chinese corporations, or “joint ventures.” But a new report on the transfer of the first phase of production capacity 51 factories from China to Kazakhstan immediately caused a storm of emotions in social networks. The words Karim Massimov has fully confirmed and Premier of the State Council of China Li Keqiang said that China is ready to establish on the territory of Kazakhstan, glass factories, cement and agricultural products processing.

This decision of the Government of Kazakhstan is already causing a lot of questions related to the real interests of the Chinese capital. The transfer of production will obviously be accompanied by removal of engineers, technicians and labor from China, even though the drop in the cost of labor in Kazakhstan, resulting in devaluations and wage cuts. Those Kazakh workers who will try to get at these companies will also be forced to learn the Chinese language, which have been practiced for employment in the “Aktobe” and enterprises with Chinese capital.

Responses actually lie on the surface. The transfer of production capacity to the natural resource base will create a pretext to legitimize the transfer of land for the deployment of these plants already for “industrial purposes”. The moratorium can easily get around in this case, by changing the status of land, as they will be officially removed from the agricultural land allocated for construction and industrial sites and housing for staff. Industrial crops are also just sow in the free areas of the so-called “joint ventures”, which supposedly is the percentage of local capital.

This policy of the authorities in the interest of Chinese corporations are also understandable, since it is related to the actual situation of the country and deindutrializatsii with a period of falling commodity prices. Nazarbayev and his nukers just simply planning to close plants and Chinese investment gaps, running parallel to the total sale of all state-owned assets of mining companies, as well as deposits of rare earth metals, gold, diamonds, uranium and other minerals. That is why this government step only an episode in the long-term course of the neo-liberal economic policies and the transformation of the country into absolute colony developed capitalist countries.

We already wrote about the fact that the national “KazMunaiGas” company has sold a significant stake of its shares to Chinese companies. So in May of this year, KMG International NV (former Rompetrol) on the basis of “KazMunaiGas» NC and Chinese company CEFC Energy Company Limited signed the documents on the establishment of a joint venture between the two companies. EP is a newly created joint venture, which owns 49% of the Kazakh side, and the Chinese company CEFC, owns 51 percent of the shares respectively. And such examples of mass sales and comprador elite set of activities.

So absolute silence sidestep the status of “national patriots” Mukhtar Tayzhan and Aidos Sarym of another already running the project since 2013, when in Ust-Kamenogorsk was opened at Ulba Metallurgical Plant nuclear fuel bank for up to 60 tonnes and, simply put , storage of radioactive waste United States and Japan of nuclear power plants. This fuel bank is also located in the city, and not somewhere in the desert or at the Semipalatinsk test site. 18 tons of nuclear waste from Japan and the United States last year were sent to storage at the Ulba Metallurgical Plant in the East Kazakhstan region.

It is obvious that all import plans, the construction of its processing plants have totally failed. Country transformed into a radioactive waste dump, becomes an object of division and exploitation of agricultural land in different regions of the transferred dirty production, which will ensure further economic and political development of the territory of Kazakhstan China. From all it is clear that this is an old project, made public only now. No wonder Dariga Nazarbayeva strongly demanded from all of us to learn Chinese.

For the Nazarbayev family and the entire ruling clique Chinese expansion salvation in the literal and figurative sense. Tron they are going to keep, when millions of hectares will be given for decades to Chinese corporations in the cities will be plants of the Xinjiang Uygur Autonomous Region, and to extract and export oil will be Chinese workers. Military and political support it will be provided in Beijing. This case is another good example, as in the case of sale of land, proving that all the decisions, contracts and onerous contract signed by Nazarbayev and his prime minister behind and against the people.

Aynur Kurmanov,
co-chairman of the Socialist Movement of Kazakhstan.