2024-04-11 19:26:10
Sino-Azerbaijani economic cooperation has been growing in recent years, focusing on various aspects such as trade, investment, infrastructure projects and energy cooperation. Economic relations between the two countries are characterized by mutual trust and friendship, with both sides determined to take their cooperation to the next level.
Trade is an important aspect of Sino-Azerbaijani eco-cooperation – trade turnover reached $2.2 billion in 2022. Moreover, Azerbaijan’s exports to China have recently increased sharply, indicating further potential for growth in trade relations. Investments are also a key area of cooperation. For example, Chinese companies invested up to $1 billion in Azerbaijan, and Baku reciprocated by investing in Chinese securities worth $1.7 billion.
The head of the foreign policy department of the Azerbaijani Presidential Administration, Hikmet Hajiyev, also raised this issue in an interview with Chinese television on March 28. He spoke about Chinese-Azerbaijani economic relations and emphasized the contribution of Chinese companies to the Azerbaijani economy.
In a conversation with AZERNEWS on this matter, the General Director of Belt and Road Consultant Pvt Limited, Muhammad Asif Noor, noted that Chinese companies, of which there are about 120, are actively involved in various sectors of the Azerbaijani economy, contributing to its diversification and development. He said infrastructure projects have received significant investment from China, increasing connectivity and facilitating trade routes. Azerbaijan’s membership in the Asian Infrastructure Investment Bank has further contributed to infrastructure development through significant investments in economic projects across the country.
“Energy cooperation remains a strategic priority, with Azerbaijan placing particular emphasis on renewable energy projects, including wind and solar power generation capacity for domestic consumption and export. Moreover, Azerbaijan views China as a critical ally in its pursuit of green growth and digital transformation, leveraging Chinese expertise and technology to achieve national development goals. The Middle Corridor project under China’s Belt and Road Initiative (BRI) further strengthens economic partnerships by providing opportunities for increased connectivity and cooperation in infrastructure development.
Negotiations between the two countries also included cooperation in energy storage systems and green hydrogen production and export, demonstrating a commitment to sustainable energy solutions. Overall, China-Azerbaijan economic cooperation continues to develop successfully in many sectors, driven by common interests and mutual benefit, laying the foundation for further cooperation and growth in the future,” Asif Noor said.
He noted that Chinese companies have made significant contributions to the Azerbaijani economy through investment, trade, infrastructure projects and energy cooperation. In 2022, trade turnover between the two countries reached $2.2 billion, with Azerbaijan accounting for 47-48% of China’s trade portfolio with the South Caucasus. He emphasized that Chinese companies have invested up to $1 billion in Azerbaijan and are represented in various spheres of the Azerbaijani economy. China has invested in several infrastructure projects in Azerbaijan.
“Azerbaijan is developing renewable energy projects, focusing on wind and solar energy production capacity for domestic consumption and export. China has expressed interest in cooperation in the field of energy storage systems, green hydrogen production and export. Azerbaijan has invited Chinese companies and investment funds to invest in its industrial parks.This contribution has played an important role in the economic development of Azerbaijan and the strengthening of the strategic partnership between the two countries.
Chinese companies are making significant contributions to Azerbaijan’s economy by diversifying sectors beyond energy, transferring technology and expertise to support digital transformation, boosting trade and investment between the two countries, and promoting green growth and sustainable development initiatives. Their participation covers various sectors, promoting economic modernization and strengthening closer economic ties between China and Azerbaijan, which ultimately contributes to mutual prosperity and development,” the expert emphasized.
He also added that China has shown interest in cooperation in the field of energy storage systems, production and export of green hydrogen, which could further expand the use of renewable energy sources in Azerbaijan. The two countries also discussed the development of offshore wind energy resources, which is expected to promote the use of renewable energy and support private sector participation in this area. Asif Noor emphasized that Azerbaijani-Chinese economic cooperation has significant potential for further development, based on several key factors outlined in the articles. Both countries emphasized their historical friendship and mutual respect, with Azerbaijan giving priority to developing strategic cooperation and partnership with China.
“This commitment is underscored by Azerbaijan’s participation in initiatives such as the Belt and Road Initiative (BRI), especially through projects such as the Middle Corridor, which aims to expand connections between China, Central Asia and Europe by providing opportunities for trade and investment. In addition, Azerbaijan has identified green growth and digital transformation as national priorities, areas where China’s experience and technological advances can make significant contributions. Although trade relations between the two countries have been growing steadily, there remains untapped potential for further expansion, especially in diversification of economic activities and expansion of business cooperation.
Moreover, Azerbaijan’s COP29 presidency provides an opportunity for cooperation between the two countries on climate change initiatives, further strengthening economic ties and promoting innovation. Overall, Azerbaijan-China economic cooperation will deepen in the coming years, driven by common interests, strategic priorities and joint efforts in various sectors, which will ultimately promote mutual prosperity and strengthen bilateral relations. In addition, Azerbaijan is strategically positioning itself as a key player in the “Middle Corridor,” which is gaining momentum as an alternative to the trans-Russian corridor for transporting goods between Europe and Asia. The Baku International Sea Trade Port, the Baku-Tbilisi-Kars railway line and other infrastructure projects form a comprehensive network offering efficient routes for cargo transportation.
The potential for business partnerships between the two countries is higher as Azerbaijan expects more Chinese companies to set up renewable energy production lines in the country. Developing relations with China is a top priority for Azerbaijan, as the country views China as a good friend and partner,” concluded Asif Noor.