Azerbaijan, China mull economy, investment, transport issues

Azerbaijan and China have discussed the expansion of investment ties in the field of industry and high technologies, the development of trade and economic relations, the cooperation opportunities within the Azerbaijani segment of the Middle Corridor and other issues.

The delegation headed by Azerbaijani Minister of Economy Mikayil Jabbarov held a number of meetings during the visit to the People's Republic of China, Caliber.Az reports, citing the Ministry of Economy.

During the talks with Chinese Vice Minister of Commerce Ling Ji, the sides noted that Azerbaijan is actively cooperating with China within various international organisations. China is one of the main partners of Azerbaijan. The two countries’ cooperation is steadily developing in such spheres as trade, investment, transport and transit. The countries’ goal is to bring trade and economic relations to the level of political ones.

The Azerbaijani minister of economy noted that Azerbaijan's active position on joining China's Belt and Road initiative led to huge investments in infrastructure development, including the construction of trade ports, highways and airports.

Azerbaijan, using the potential of the Trans-Caspian International Transport Route (Middle Corridor), contributes to the expansion of cargo transportation between China and Europe. At the same time, there is a need to intensify trade ties to optimise transport routes. Partnership within the Shanghai Cooperation Organisation (SCO) also brings mutual benefits.

There is great potential and prospects for joint activity in the field of alternative and renewable energy sources, high technologies, digital economy, production and e-commerce, as well as between the State Oil Company of the Azerbaijan Republic (SOCAR) and Chinese companies operating in the energy sector.

Chinese investors can take advantage of the transport and logistics opportunities at the intersection of international corridors of the Alat Free Economic Zone. The sides also discussed the implementation of significant agreements reached within the 22nd meeting of the SCO Council of Heads of State in Samarkand, as well as measures to develop trade and investment ties and expand cooperation.

The sides stressed that the signing of the "Framework Agreement between the Ministry of Economy of the Republic of Azerbaijan and the National Development and Reform Commission of the People's Republic of China on production capacities and strengthening investment cooperation" will make a positive contribution to expanding ties in various sectors of the economy, including trade.

Ling Ji expressed satisfaction with the successful activity of Chinese companies in Azerbaijan. While assessing the business and investment environment in Azerbaijan, Chinese companies are interested in intensifying partnerships.

The vice minister added that the Azerbaijan Trading House has begun to work online on the well-known e-commerce website in China - JD.com since early 2022. The presence of Azerbaijan on this platform will play a significant role in the promotion and recognition of Azerbaijani products by Chinese consumers.

The sides discussed the possibilities of strengthening current economic ties, expanding cooperation in the field of investments and encouraging mutual activity within the infrastructure projects.

During a meeting with Vice Minister of the Ministry of Industry and Information Technology of the People's Republic of China Xin Guobin, the sides stressed the importance of expanding business dialogue with leading Chinese companies, information on the favourable business and investment environment in Azerbaijan, the conditions created for investors, ongoing and promising projects in the field of alternative and renewable energy was provided.

The sides discussed the current investment ties and potential measures to expand mutually beneficial cooperation. The potential available for the implementation of joint projects in shipbuilding, renewable energy sources, including the localisation of wind and solar energy production, as well as the creation of urban infrastructure was emphasised.

Moreover, there are great opportunities for implementing joint projects and exchanging experience in these spheres given the importance of upgrading industrial sites and China's best practices in this sphere.

The opportunities for cooperation in introducing technologies of the Fourth Industrial Revolution, digitalisation of the economy and other potential projects were also discussed at the meeting.

During his visit to China, the Azerbaijani minister of economy also met with Chinese Vice President of Envision Energy John Lee. The sides emphasised the expansion of ties between business circles, the business and investment environment, conditions created for investors in Azerbaijan. Among the priority issues for ensuring sustainable economic growth is the introduction of the most progressive tools in the field of energy efficiency and the development of alternative energy. There are great opportunities for expanding partnerships to ensure the activity of specialised enterprises in Azerbaijan.

The sides discussed the possibilities of cooperation to create an industrial park with zero emissions, introduce new technologies in the energy sector and supply the corresponding equipment.

While speaking at the Summit Forum on China's International Economic Cooperation - Going Global within the China International Fair for Trade in Services (CIFTIS) in Beijing, Azerbaijani Deputy Minister of Economy Sahib Mammadov provided information on the economic success of the country.

Despite problems with supply chains and other difficulties caused by the global economic crisis, the Azerbaijani economy continued to grow steadily. The country's GDP grew by 4.6 per cent, non-oil GDP - by 9.1 per cent in 2022. More than $320 billion was invested in the country's economy from 1995 to 2022, most of which accounted for foreign investments. The Trans-Caspian International Transport Route, uniting China and Europe, was created at Azerbaijan’s initiative after the Baku-Tbilisi-Kars railway was commissioned in 2017. The Middle Corridor is becoming more popular, the volume of cargo transportation along it is constantly growing.

The Azerbaijani deputy minister noted that the Middle Corridor is a large-scale international transport project that meets the economic interests of not only our countries, but also other regional countries. Today Azerbaijan is one of the main countries contributing to the implementation of the Middle Corridor. This route is turning into an important corridor connecting Asia and Europe. Such infrastructure projects as Baku-Tbilisi-Kars, which is the shortest rail route between Europe and China, the Baku International Sea Trade Port and the Alat Free Economic Zone are of great importance for this global initiative and regional cooperation in general.