China “stops” grain imports from Kazakhstan

Kazakhstan’s wheat exports to China are breaking records. Over the past five years, Kazakhstan’s producers have sent about 3.5 million tons of crop products to China. The Government of Kazakhstan believes that the export potential for grain is 10 million tons per year. However, problems on the Chinese side are hindering exports, reports the agency “APK Novosti”.

Wheat produced in Kazakhstan is quite actively exported to China. It is one of the main crops of Chinese imports. Over the past five years, shipments of Kazakhstan’s crop products to China have grown more than 4.5 times. So, if in 2019 the volume of exports was 750 thousand tons, last year – already 3.5 million tons, said Deputy Prime Minister of Kazakhstan Serik Zhumangarin.

As for grain directly, exports were resumed last year. 2 million tons were shipped. However, the export potential of Kazakhstani grain to China, according to the Government, may be up to 10 million tons per year.

At the same time, notes Deputy Prime Minister, China delays the registration of Kazakh companies in its customs system.

He noted that there are problems when the process of registration of Kazakh agricultural companies in the system of the General Customs Administration of China is delayed. The procedure of inclusion of enterprises in the register is too long. New exporting companies have to wait for registration, Mr. Zhumangarin said.

The Kazakhstani side appealed to the Chinese side with a proposal to work out together a mechanism for producers to provide a list of importers in China with a license to accept Kazakhstani grain. This would allow to build an optimal logistics of grain.

As reported, Kazakhstan proposed to create a special committee together with China, which would contribute to a more effective development of transportation.

Also, according to him, a promising project is the organization of a new multimodal transit service between China, Kazakhstan and Russia using the Irtysh. Goods can be delivered to China by river transport with transshipment to rail transport at Lake Zaisan and further to the new railway border crossing “Maikapchagai – Zimunai”. This would allow to create an alternative to traditional rail and road transportation and increase the possibility of trade turnover by an additional 3 million tons.

“The meeting ended on a very warm note. Liu Guozhong listened attentively and promised to pass all the issues raised to the responsible government agencies and the State Council of the People’s Republic of China. He emphasized that the Chinese side has a very active attitude to interaction and cooperation with a friendly country,” summarized S. Zhumangarin.

Tags: China, Kazakhstan, wheat