China - Kyrgyzstan Trade Ties Could Serve As Big Boost To Alibaba, Here's How

by Anusuya Lahiri, Benzinga Editor
August 2, 2022 9:25 AM | 1 min read |
  • China is looking to boost imports from Kyrgyzstan following trade discussions during the 15th meeting of the intergovernmental Kyrgyz-Chinese commission, the Silk Road Briefing reports.
  • The main products that Kyrgyzstan currently exports to China include precious metal ore, rolled tobacco, and refined petroleum.
  • Kyrgyzstan is an essential ally for China, being a part of the China-Kyrgyzstan-Uzbekistan railway (CKU).
  • Also Read: Rotate From US Tech Sector To China's Alibaba, Baidu, JD; This Analyst Recommends Investors
  • However, Kyrgyzstan's national income needs a boost to motivate them to invest in trade and exploit the railway opportunity. 
  • China's Deputy Minister of Commerce, Wang Shouwen, emphasized China's efforts to drive the supply of products from Kyrgyzstan to the Chinese market, including agricultural products. 
  • He also proposed paying particular attention to bilateral cooperation in innovation, green economy, and others. 
  • Alibaba Group Holding Limited BABA will likely be part of this. The Kyrgyzstan government itself proposed to consider opening the Kyrgyz outlet of Alibaba. 
  • The Kyrgyz side hinted at the possibility of opening an Alibaba facility in Kyrgyzstan to spur economic growth and online commerce and the volume of bilateral trade.
  • Russia also declared establishing a Kyrgyz hub, making the CKU railway a logistics and consolidation hub to reach Tajikistan, Uzbekistan, Kazakhstan, and onto the Caspian Sea nations, including Russia, Iran, Azerbaijan, the Caucasus, and Europe.
  • Alibaba is currently braced for primary listing in Hong Kong to save itself from a U.S. delisting.
  • Price Action: BABA shares traded lower by 2.14% at $88.41 in the premarket on the last check Tuesday.
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