BROCHURE: Doing Business in Kazakhstan for Chinese Entrepreneurs

BROCHURE: Pros and Cons of Doing Business in Kazakhstan for Chinese Entrepreneurs

✅ Advantages for Chinese Business in Kazakhstan

1. Geographic and logistical proximity

· - Shared border with China

· - Border crossings (Khorgos, Druzhba) and developed infrastructure

2. Government support for foreign investors

· - SEZs (Special Economic Zones) with 0% VAT, corporate, and land tax

· - Free infrastructure access, equipment subsidies

· - Institutions: Atameken, SPK, KAZAKH INVEST

3. Underdeveloped niches

· - Agro-processing, logistics, education, manufacturing, e-commerce

· - Low competition, high potential margins

4. Fast market entry

· - Simplified company registration

· - Can start via Joint Ventures (JVs) with local partners

5. Access to EAEU and Central Asian markets

· - Kazakhstan as a logistics platform for 180+ million consumers

6. Belt and Road Initiative synergy

· - Kazakhstan is a key partner in Central Asia for China

· - Strong bilateral support for cooperation

⚠️  Potential Risks and Limitations

1. Public sensitivity

· - Certain regions may be cautious toward large-scale Chinese investment

· - Requires cultural sensitivity and transparent communication

2. Bureaucracy

· - Regional differences in process transparency and speed

· - Land, permits, and infrastructure approvals may take time

3. Language and cultural barrier

· - Russian and Kazakh are official business languages

· - Need for local advisors or translators

4. Currency volatility

· - Tenge is less stable compared to Yuan or USD

· - Currency hedging or foreign-denominated contracts recommended

5. Infrastructure limitations outside major cities

· - Logistics, personnel, and connectivity may be weak in rural areas

�� Summary Table: Conditions Overview

| Factor                         | Rating     |  Comment                                                                                           |

| Growth potential          | ⭐⭐⭐⭐ ☆     | Underserved market with expansion room      |

| Government support        | ⭐⭐⭐⭐⭐      | Tax exemptions, land, infrastructure help |

| Risk level                | ⭐⭐ ☆☆☆     | Manageable with local partnerships                                 |

| Competition               | ⭐⭐ ☆☆☆     | Low in many sectors                                                         |

| Transparency              | ⭐⭐⭐ ☆      | Improving, varies by region                                          |

��  Recommendations for Chinese Companies:

· - Partner with locals (JVs or via SPKs)

· - Base production in SEZs or Alatau smart city