Technologies

Central Asian Startups Urged to Explore China’s Market

Central Asian Startups Urged to Explore China’s Market
Central Asian Startups Urged to Explore China’s Market / Photo: UzDaily.

Tashkent, Uzbekistan (UzDaily.uz) — Central Asian startups should begin exploring China’s market now, as it offers opportunities to develop hardware, attract investment and expand internationally, Lazzat Borankulova, founder and CEO of Khan Tengri Innovation Hub, said in a podcast recorded during ICT Week Uzbekistan 2026.

Borankulova described Khan Tengri Innovation Hub as the first hub established in Shanghai with support from Kazakhstan and Uzbekistan as part of a joint initiative involving Central Asian innovation hubs. It helps startups from the region scale their businesses in China and currently operates in Shanghai, Beijing, Shenzhen, Hangzhou and Hong Kong.

She said the perception of China solely as a manufacturing centre was outdated. Over the past decade, the country has significantly developed its IT infrastructure and innovation sector. China now leads in the number of artificial intelligence patents, electric vehicle production and humanoid robotics, as well as the industrial adoption of robotics, she said.

Government-supported science and technology parks in major Chinese cities help foreign startups with company registration and initial funding. They also provide access to infrastructure, including supercomputing capacity and cloud services.

According to Borankulova, startups should choose their entry point into China based on their industry, as the country’s economy is organised around specialised industrial clusters.

Shanghai focuses on robotics and artificial intelligence, while Shenzhen specialises in hardware, telecommunications and drones. Hong Kong is better suited to raising capital and establishing legal holding company structures.

Borankulova outlined three models for cooperation with China. The first combines software developed by Central Asian companies with Chinese hardware for export or sale within China.

The second involves developing and manufacturing proprietary hardware in China, from prototyping to mass production. The third is to compete in the Chinese market through a local partner and its distribution channels.

Products intended for China must be localised because much of the country’s digital ecosystem is closed to foreign services. Google, WhatsApp and LinkedIn, for example, do not operate there. Startups working in deep technology have the strongest prospects for cooperation and sales, she said.

Promising areas include medical technology, advanced materials, new energy, robotics, industrial AI, agricultural technology and blockchain. Competition in e-commerce and fintech is intense, but companies may still find specialised niches or offer solutions to local businesses under their own brands.

“Start exploring the Chinese market right now. Do your homework and put in the effort,” Borankulova urged.

Even if a startup ultimately decides against entering China, a visit can help it understand the business models of local competitors, improve its own product and gain a first-mover advantage in its home region, she said.

The podcast also presented the hub’s two-month accelerator programme focused on industrial AI and smart manufacturing. The programme combines online preparation with in-person sessions in Hong Kong, Shenzhen and Shanghai.

During the online phase, participants will analyse the market and competitors, assess their readiness to enter China and prepare pitch decks. Meetings with venture capital funds are planned in Hong Kong.

The Shenzhen programme will focus on hardware development, working with factories and intellectual property protection.

In Shanghai, participants will work on business development and market-entry strategies and meet major companies. The programme is open to startups at the seed stage and beyond that operate in mining, construction, logistics and other industrial sectors.

Anvar Mukhitdinov
Anvar Mukhitdinov

Chairman of Association of Public Procurement Participants