Japan is prepared to find investments for over 100 projects. Beyond the promise of incorporating a green corridor, this move across five Central Asian countries is a remarkable shift in its economic strategy. Prime Minister Sanae Takaichi recently hosted a summit in Tokyo with leaders from these nations, focusing on enhancing economic cooperation and addressing mutual interests. The convening, which took place on December 19, was meant to deepen relationships and encourage greater cooperation between Japan and Central Asia.
During the summit, Takaichi emphasized Japan’s commitment to partnering with Central Asian countries on cutting-edge technologies, particularly in artificial intelligence (AI) and mining. This partnership comes as the geopolitical significance of Central Asia increases sharply. At the same time, Japan prepares for its first summit in such a format with the region. Leaders discussed the urgent need for stable resource supplies, a topic of growing importance amid recent global tensions.
Japan’s growing interest in Central Asia comes against the backdrop of wider geopolitical and geoeconomic dynamics. And now the United States has begun large-scale retaliatory airstrikes against ISIS in Syria, putting a new and complicated regional player in the mix. Kazakhstan’s oil industry already experienced major chaos after a drone strike on Russia’s assets in Ukraine caused a major disruption. This incident underscores the fragility of the resource-dependent economies across the region.
Notably, Japan’s Sojitz Corporation is making a significant investment of $1 billion in an airport development project in Uzbekistan, highlighting the latter’s critical role in Central Asia. Uzbekistan has carved itself a significant role, drawing in billions of dollars in foreign investments meant to shore up its own infrastructure and accelerate its own economic development.
The Ili River route through Kazakhstan is almost entirely blocked. Water shortages might impact pathways for trade and transportation in years to come. Central Asian nations have bitter environmental and logistical hurdles. These challenges make it difficult for them to strengthen economic ties with Japan and other countries.
Japan is looking to elevate its relationship with Central Asia. We need to consider the broader impact of this relationship. Former President Donald Trump originally intended to hold these summits with Central Asian leaders. He sought to restore a traditional counterbalance to Russian and Chinese regional influence. Japan now stands at a vastly different geopolitical landscape ripe with opportunities and challenges. It is determinedly looking to expand its influence beyond the Caucasus and Central Asia.