Uzbekistan Roundup: Liberalisation of Chinese visa regime, car production boost, population growth

Uzbekistan and China intend to liberalise visa regime

Uzbekistan and China are reinforcing their diplomatic and economic relations through various initiatives, including the liberalisation of visa regimes and enhanced consular cooperation. On November 24, 2024, high-level discussions in Beijing aimed to simplify these visa processes while ensuring the rights of citizens are upheld. A multifaceted approach was adopted, addressing critical areas such as tourism, entrepreneurship, and investment opportunities. Uzbekistan's government is undertaking substantial reforms to facilitate travel, which has garnered recognition and support from Chinese officials, Daryo reports.

Car production boost

Uzbekistan's automotive sector is experiencing impressive growth, with vehicle production reaching 338,000 units and export revenues hitting $455 million from January to October 2024. The country has set ambitious targets to escalate production to 450,000 vehicles and boost export income to $700 million by 2025. This sector is now contributing 10% to the nation's industrial output and is expanding through 63 newly initiated projects valued at $325 million, aimed at manufacturing additional automotive components. Collaborations with international brands, notably Chevrolet, as well as manufacturers from South Korea and China, are pivotal to this sector's growth. According to The Times of Central Asia, a significant development is the new BYD electric vehicle plant located in Jizzakh, which is currently producing 50,000 electric vehicles annually, with aspirations to extend its capacity up to 500,000 vehicles per year.

Population growth

As of November 27, 2024, Uzbekistan's population has surpassed 37.5 million, now recorded at 37,504,338. This demographic growth will undoubtedly influence the country's economic planning and development initiatives, as a larger population can lead to increased demand for goods and services, reports Akipress.

Raising GDP to $200bn

President Shavkat Mirziyoyev has set forth a strategic goal to elevate Uzbekistan's GDP to $200 billion by the year 2030. Ongoing reforms in the railway and aviation sectors reflect this ambition, with significant enhancements aimed at improving economic efficiency and transportation services. As reported by Daryo, the establishment of six independent enterprises within the railway sector and the introduction of new cargo wagons have dramatically reduced domestic transport times. Furthermore, digitalisation initiatives have streamlined cargo ordering processes, resulting in significant reductions in processing times.

UnionPay cards of Gazprombank stopped

UnionPay cards issued by Gazprombank have been suspended in Uzbekistan due to recent U.S. Treasury sanctions on the bank and other Russian financial institutions. These sanctions have disrupted UnionPay card services, impacting users' access to cash and payments. According to Daryo, this marks the first time Gazprombank's core activities have been directly affected by sanctions, previously targeting only high-ranking officials. The sanctions aim to limit Russia's financial activities, particularly in energy exports, amid ongoing geopolitical tensions.