What support do exporters to China receive?

At the Central Asia-China summit, President Tokayev noted that Kazakhstan could increase its exports to the PRC in 135 non-resource commodity items. What could facilitate this, kazakhexport told World of NAN.

According to the company's press service, some Kazakh exporters, supplying their products to China, are already using KazakhExport support tools. For example, Sey-Nar Production Complex LLP. The company includes an oil extraction plant, a mill complex, and a grocery shop. It produces unrefined vegetable oil, meal, cake and other agricultural products. More than 60% of the produced volume the company supplies abroad, to such countries as China, Uzbekistan and Tajikistan.

"Today China is the second largest trade partner of Kazakhstan. Chinese consumers appreciate Kazakhstani products, they associate them with natural production. It is profitable and comfortable for our company to work with China," said Rauan Baimuldinov, director of PK Sey-Nar LLP.

In 2022, with support from KazakhExpoPort, the company was able to get a loan and launch a new plant for processing sunflower seeds with the capacity of 1400 tons per day, which will allow Sey-Nar to increase exports to all countries, particularly to China.

Another company, already exporting its products to China, Qazaq-Astyq Group LLP uses such a product as a pre-export financing loan insurance. This service is especially important when launching new productions in conditions of shortage of working capital for raw materials purchase.

Qazaq-Astyq Group LLP produces products of flax, rapeseed and sunflower seeds processing. Each day the oil extraction plant processes more than thousand tons of raw materials, producing up to 450 tons of sunflower oil and 390 tons of sunflower meal. The company delivers 6-9 thousand tons of unrefined sunflower oil to China every month. 

With the support of KazakhExport on the instrument "Loan Insurance" the company was able to get a loan from JSC "Development Bank of Kazakhstan" for the purchase of raw materials and obligations under export contracts, as well as to increase production volumes. The total amount of support, including exports to China and other countries from 2021 amounted to more than 45 billion tenge. At the moment the company is also considering the possibility of using export credit insurance instruments (deferred payment) and trade financing.

"The main priority of cooperation with China is logistics, also a special role is played by customer demand from our neighbors. The contract terms are quite flexible for both the buyer and the seller. As for buyers' payment, there are no problems: if both sides agree, you can choose the best method of payment," said First Deputy Director General of Qazaq-Astyq Group LLP, Maksat Kulturkmenov.

According to him, the practice shows that the Kazakh products have shown themselves in China in a good way, first of all in terms of quality indicators, also an important role is played by the delivery time of products.

In general, since 2019 the volume of insurance liabilities assumed by KazakhExport to support Kazakhstani enterprises exporting to China amounted to over 478 million tenge. With the insurance support of KazakhExport, Kazakhstani exporters supply oil and fats, flour, juices, beverages, cattle meat and many other products to the Chinese market.

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