Azerbaijan, China Forge Stronger Economic Ties Amidst Growing Diplomatic Relations

(MENAFN- AzerNews)

Nazrin Abdul Read more

Azerbaijan's successful Political strategies have tightly integrated it into international alliances. Presently, Azerbaijan not only cultivates robust relationships with Europe and the United States but also strengthens ties with China, Russia, and other Central Asian nations.

Recent times have witnessed a notable increase in official reciprocal visits between Azerbaijan and China, significantly impacting the global economy.

The development of bilateral relations with China ranks among Azerbaijan's foremost foreign policy priorities. Since the establishment of diplomatic ties on April 2, 1992, cooperation between the two countries has swiftly progressed to a strategic level.

Political, economic, capital, transportation, green energy, public diplomacy, and other fields are witnessing strengthened collaboration between Azerbaijan and China. Recently, relations between the two nations have reached new qualitative heights.

It is noteworthy that President Ilham Aliyev and Chinese leader Xi Jinping have established high-level friendship relations based on mutual trust and esteem. Xi Jinping was among the first heads of state to congratulate President Ilham Aliyev on his recent presidential election victory.

Significant importance is attached to the visits and meetings between the leaders of both countries. In April 2019, President Ilham Aliyev participated in the Second Belt and Road Forum for International Cooperation in Beijing. A meeting between the heads of state of Azerbaijan and China took place in Samarkand on September 15, 2022, during the Shanghai Cooperation Organisation (SCO) Summit.

The recent meeting between President Ilham Aliyev and Chinese leader Xi Jinping in Astana during the SCO Summit is crucial for elevating bilateral relations to a strategic partnership level and identifying new development perspectives for cooperation.

Moreover, the adoption of the "Joint Declaration on Establishment of Strategic Partnership between the Republic of Azerbaijan and the People's Republic of China" during the Astana SCO Summit on July 3 underscores the mutual commitment to expanding cooperation in political, economic, and cultural spheres amidst complex global and regional developments.

Azerbaijan and China will continue enhancing the role of the Intergovernmental Commission on Trade and Economic Cooperation to strengthen mutual activities in trade, investment, and engineering projects.

The declaration aims to actively promote cooperation between Azerbaijan and China at a high level, focusing on advancing projects in transportation and communications, green energy, processing and production, infrastructure, the digital economy, agriculture, and other sectors.

Despite significant differences in economic scale, Azerbaijan and China possess substantial potential for enhancing cooperation in economic complementarity, industrialization, and investment. The declaration is expected to facilitate the full utilisation of the industrialization and investment cooperation mechanism between Azerbaijan and China, enhancing relations in planning and policy.

The declaration also actively promotes cooperation in priority sectors such as oil and gas production and processing, green energy, transportation infrastructure, information and telecommunications, the digital economy, non-ferrous metals, construction materials, etc., based on principles of market economy, yielding beneficial results for both nations.

It should be noted that Azerbaijan and China aim to boost bilateral trade volumes by optimising investment structures and easing market entry for goods.

Simultaneously, both countries actively participate in international exhibitions and forums. China supports Azerbaijan's thematic presentations and encourages its connection with trade centres, national pavilions in China, and Chinese e-commerce networks.

It is important to recall that in 2013, the People's Republic of China introduced the "One Belt, One Road" initiative, a strategic economic development plan aimed at enhancing infrastructure connectivity across Eurasian countries and fostering mutual relationships. Azerbaijan emerged as the first country in the Caucasus region to endorse this initiative, thereby assuming a pivotal role as a logistics hub, junction, and bridge in its implementation.

During President Ilham Aliyev's official visit to China in December 2015, the governments of the Republic of Azerbaijan and the People's Republic of China signed a Memorandum of Understanding to jointly promote the Silk Road Economic Belt.

Azerbaijan, as the sole member facilitating the "East-West" and "North-South" transportation corridors, offers opportunities for countries situated north and south to participate in this transformative project.

Under the auspices of the "One Belt, One Road" initiative, Azerbaijan and Baku Port inaugurated the Alat town port in May 2018, equipped with state-of-the-art technological infrastructure and operational systems meeting contemporary standards. These advancements enable cargo owners to track their shipments' location and status online, contributing positively to trade facilitation within the project framework.

The Baku-Tbilisi-Kars railway, providing the shortest rail connection between Europe and Asia, not only benefits Azerbaijan, Georgia, and Turkiye but also generates new economic prospects for countries throughout the Eurasian region.

In conclusion, Azerbaijan's proactive endorsement of the "One Belt, One Road" initiative underscores its strategic commitment to enhancing regional connectivity and fostering economic collaboration across Eurasia. By leveraging its position as a critical logistics centre and facilitating pivotal transportation corridors like the Baku-Tbilisi-Kars railway and Alat port, Azerbaijan not only strengthens its own infrastructure but also facilitates smoother trade flows and economic integration within the broader Eurasian context.

Moving forward, Azerbaijan's continued engagement in this initiative promises to yield sustained economic benefits, promoting regional stability and prosperity through enhanced connectivity and cooperation.

MENAFN04072024000195011045ID1108407179