Prosecutors step in after Chinese investor faces barriers in Khorgos

According to the Prosecutor General’s Office of Kazakhstan, the Chinese company International Castle, which planned to build a «City of Craftsmen» in the special economic zone (SEZ) Khorgos for 7 billion tenge ($13 million), faced mistreatment. As a result, the investor was unable to obtain registration in the SEZ once its contract expired.

Furthermore, because the customs procedure for importing construction materials was not completed, and the investor was later excluded from the official register of the SEZ, International Castle was charged additional customs duties of 1.4 billion tenge ($2.6 million). In fact, the project was blocked, prosecutors said.

However, after the Prosecutor General’s Office intervened, all restrictions were lifted from the company, while the illegally charged payments were cancelled. The official who committed the violations was brought to disciplinary responsibility, authorities said.

As a result, the Chinese company was able to launch an investment project in Khorgos worth 7 billion tenge. The project is now expected to attract tourists from China to the Kazakh side of the SEZ. This is not the first time local officials have prevented Chinese investors from implementing projects.

In 2023, the Prosecutor’s Office of the Ulytau region protected the rights of a Chinese investor after local fiscal authorities almost paralyzed the operation of Mezgilder Qushteri, a company that is constructing a wind power station worth $163 million.