(MENAFN- AzerNews)
Qabil Ashirov Read more
China-Azerbaijan economic cooperation has been growing over thepast years, with a focus on various aspects such as trade,investment, infrastructure projects, and energy cooperation. Theeconomic relations between the two countries has been characterizedby mutual trust and friendship, with both sides determined to raisetheir cooperation to a new level.
Trade has been a significant aspect of Chinese-Azerbaijanieconomic cooperation, with the trade turnover reaching $2.2 billionin 2022. Moreover, Azerbaijan's exports to China have seen a recentuptick, signaling further potential for growth in trade relations has also been a key area of cooperation, with up to $1billion invested in Azerbaijan by Chinese companies, and Azerbaijanreciprocating with investments of $1.7 billion in Chinesesecurities.
Hikmet Hajiyev, the Head of Foreign Policy Affairs Department ofthe Azerbaijani Presidential Administration also touched on theissue in an interview with Chinese TV on March 28. He spoke aboutChinese-Azerbaijani economic relations and underlined thecontribution to Azerbaijani economy by Chinese companies.
Speaking to AZERNEWS on the issue, CEO, Beltand Road Consultant Pvt Limited Muhammad Asif Noor noted thatChinese companies, numbering around 120, are actively involved invarious sectors of the Azerbaijani economy, contributing to itsdiversification and development. He said that Infrastructureprojects, such as the Baku-Tbilisi-Kars railway and theBaku-Tbilisi-Ceyhan pipeline, have received substantial investmentsfrom China, enhancing connectivity and facilitating trade routes's membership in the Asian Infrastructure Investment Bankhas further bolstered infrastructure development, with significantinvestments in economic projects across the country.
“Energy cooperation remains a strategic priority, withAzerbaijan focusing on renewable energy projects, including windand solar energy production capacities for domestic consumption andexport. Moreover, Azerbaijan views China as a crucial ally in itspursuit of green growth and digital transformation, leveragingChinese expertise and technology to achieve national developmentgoals. The Middle Corridor initiative within China's Belt and RoadInitiative (BRI) further amplifies the economic partnership,presenting opportunities for enhanced connectivity and cooperationin infrastructure development.
Discussions between the two countries have also exploredcooperation in energy storage systems and green hydrogen productionand export, showcasing a commitment to sustainable energysolutions. Overall, Chinese-Azerbaijani economic cooperationcontinues to succeed across multiple sectors, driven by sharedinterests and mutual benefits, laying the foundation for furthercollaboration and growth in the future,” Asif Noor said.
He pointed out that Chinese companies have made significantcontributions to the Azerbaijani economy through investments,trade, infrastructure projects, and energy cooperation. In 2022,the trade turnover between the two countries reached $2.2 billion,with Azerbaijan accounting for 47-48% of China's trade portfoliowith the South Caucasus. He underscored that Chinese companies haveinvested up to $1 billion in Azerbaijan and are represented invarious fields of the Azerbaijani economy. China has invested inseveral infrastructure projects in Azerbaijan, including theBaku-Tbilisi-Kars railway and the Baku-Tbilisi-Ceyhan pipeline.
“Azerbaijan has been developing renewable energy projects, witha focus on wind and solar energy production capacities for domesticconsumption and export purposes. China has expressed interest incooperating on energy storage systems and green hydrogen productionand export. Azerbaijan has invited Chinese companies and investmentfunds to invest in its industrial parks. These contributions havebeen instrumental in driving the economic development of Azerbaijanand strengthening the strategic partnership between the twocountries.
Chinese companies significantly contribute to the Azerbaijanieconomy by diversifying industries beyond energy, transferringtechnology and expertise to support digital transformation,boosting trade and investment between the two countries, andpromoting green growth and sustainability initiatives. Theirinvolvement spans various sectors, facilitating economicmodernization and fostering closer economic ties between China andAzerbaijan, ultimately contributing to mutual prosperity anddevelopment,” the expert said.
He also added that China has shown interest in cooperating onenergy storage systems and green hydrogen production and export,which could further enhance the use of renewable energy sources inAzerbaijan. The two countries have also discussed the developmentof offshore wind energy resources, which is expected to promote theuse of renewable energy and support the participation of theprivate sector in this area. Asif Noor emphasized thatAzerbaijani-Chinese economic cooperation holds significantpotential for further development based on several key factorsoutlined in the articles. Both countries have emphasized theirhistorical friendship and mutual respect, with Azerbaijanprioritizing the development of strategic cooperation andpartnership with China.
“This commitment is underscored by Azerbaijan's participation ininitiatives like the Belt and Road Initiative (BRI), particularlythrough projects like the Middle Corridor, which aims to enhanceconnectivity between China, Central Asia, and Europe, presentingopportunities for trade and investment. Additionally, Azerbaijanhas identified green growth and digital transformation as nationalpriorities, areas where China's expertise and technologicaladvancements can contribute significantly. While trade relationsbetween the two countries have seen steady growth, there remainsuntapped potential for further expansion, particularly indiversifying economic activities and increasing businesscollaboration.
Moreover, Azerbaijan's chairmanship of COP29 presents anopportunity for collaboration between the two countries on climatechange initiatives, further strengthening economic ties andfostering innovation. Overall, Azerbaijani-Chinese economiccooperation will deepen in the coming years, driven by sharedinterests, strategic priorities, and collaborative efforts acrossvarious sectors, ultimately contributing to mutual prosperity andstrengthening the bilateral relationship. In addition, Azerbaijanhas strategically positioned itself as a key player in the MiddleCorridor, which is gaining traction as an alternative to thetrans-Russia passage for transporting goods between Europe andAsia. The Baku International Sea Trade Port, the Baku-Tbilisi-Karsrailway line, and other infrastructural projects form acomprehensive network that offers efficient routes for transportinggoods.
The potential for business partnerships between the twocountries is higher, with Azerbaijan expecting more Chinesecompanies to establish production lines for renewable energies inthe country. The development of relations with China has been a toppriority for Azerbaijan, as the country sees China as a good friendand partner,” Asif Noor concluded.
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