Baku and Beijing deepen dialogue From AI to green energy

China and Azerbaijan, with rapidly growing trade ties, are now focusing on expanding investment partnerships and launching joint projects across manufacturing, energy, agriculture, transportation, and other key sectors. At the same time, Baku and Beijing are strengthening their cooperation within the framework of the UN’s initiative for global intercivilisational dialogue.

At a briefing held on June 10 in Baku, marking the first International Day for Dialogue among Civilisations, promising areas of Azerbaijani-Chinese trade, business, technical, and scientific collaboration were highlighted.

The expansion of trade and economic cooperation with China has been a consistent policy of the Azerbaijani government for more than two decades. This process accelerated noticeably after the signing of the Intergovernmental Memorandum of Understanding on Joint Promotion of the Creation of the Silk Road Economic Belt in December 2015. As a steadfast partner of China’s Belt and Road Initiative, and by strengthening cooperation within the framework of the Shanghai Cooperation Organisation, Azerbaijan is implementing joint projects in transportation and logistics, expanding business ties in trade, tourism, high technology, green energy, and more.

The cooperation between Baku and Beijing is equally productive within the framework of the global civilisation initiative, established by the relevant UN General Assembly resolution and supported by 83 countries worldwide, including China and Azerbaijan.

“The establishment of the International Day for Dialogue among Civilisations clearly reflects the shared commitment to deepening dialogue among civilisations and promoting human progress,” stated China’s Ambassador to Azerbaijan, Lu Mei, during the briefing in Baku dedicated to this occasion.

“Azerbaijan actively supports the initiative proposed by China and is ready to jointly promote respect for cultural diversity, as well as to actively develop humanitarian exchanges and cooperation.”

China’s Foreign Minister Wang Yi, in his video message at an event celebrating the first International Day for Dialogue among Civilizations, reminded that the modern world includes over 200 countries and regions and more than 2,500 peoples who have created vibrant and unique civilizations throughout history.

“This date will be observed annually on June 10, reflecting the shared aspiration of the peoples of the world for dialogue between civilisations and the progress of humanity,” he said.

According to the foreign minister, the international community should promote the free flow of ideas and technologies and continuously expand the horizons of human knowledge. In particular, it is necessary to ensure that advanced technologies, including artificial intelligence (AI), stimulate inclusive development for all countries without exception and jointly support the advancement of global modernisation.

In this regard, the successes of Azerbaijani-Chinese cooperation in the fields of science and technology, intellectual property, ecology, industry, information, the digital economy, and green energy serve as illustrative examples.

During the state visit of Azerbaijani President Ilham Aliyev to China in April of this year, a number of documents and agreements were signed between Azerbaijan’s Ministry of Energy and Chinese companies. These covered renewable energy sources (RES) and the development of energy efficiency in the transport sector. Baku and Beijing plan to implement RES projects with a total capacity of 2 GW. This work is already well underway: Chinese companies are participating in the construction of a 160 MW solar power plant (SPP) in Fuzuli. Future plans include attracting Chinese investors for the construction of the 100 MW Gobustan SPP, a 100 MW floating SPP, and a 30 MW battery energy storage system on Lake Boyukshor. There are also ongoing efforts to assess, develop, and implement a wind energy project in the Azerbaijani sector of the Caspian Sea.

Meanwhile, cooperation between the two countries in the electrification of public transport has intensified. Last year, a framework agreement was signed with China’s BYD Company Limited for the purchase of electric buses, local assembly in Azerbaijan, and the establishment of charging and service infrastructure.

Equally promising is the potential participation of the Chinese company Shenzhen Hasee Computer Co. in the localisation of laptop production in Azerbaijan, as a memorandum of understanding has already been signed with the company.

Speaking about the expansion of intercivilizational dialogue in the fields of science and technology, it is worth noting that Azerbaijan was among the first countries to join China’s initiative on the development of artificial intelligence.

“China attaches great importance to global governance in the field of AI and advocates for these technologies to serve the entire humanity, rather than becoming the privilege of only wealthy nations,” stated Chinese Ambassador to Azerbaijan, Lu Mei. “Azerbaijan actively supported the concept of intercivilizational dialogue proposed by China and enshrined in a UN General Assembly resolution. Baku was also one of the first to join China’s ‘Group of Friends’ for international cooperation in the field of artificial intelligence.”

China remains committed to supporting Azerbaijan and other Global South countries in their efforts to strengthen capacity, bridge digital and intellectual divides, and move jointly toward a brighter digital and intelligent future.

This cooperation is highly beneficial for Azerbaijan, as China is rapidly developing its AI sector with the ambition of becoming a global leader in the field.

Already today, China holds the world’s leading position in the number of AI-related patents and is home to major AI startups such as Baichuan, Zhipu AI, and MiniMax. In January of this year, Chinese developers launched their new open-source model DeepSeek-R1, offered at an extremely low price and using a minimal number of chips—surpassing many of their U.S. and European competitors.

It is projected that the market volume for Chinese AI chips could reach $50 billion in the coming years.

Alongside cooperation in renewable energy and high-tech sectors, Baku and Beijing are actively developing traditional trade and industrial investment ties. Last year, bilateral trade between Azerbaijan and China grew by 20%, reaching $3.7 billion.

“In January–April of this year, the volume of bilateral trade hit $1.4 billion, reflecting a nearly 37% increase and maintaining strong momentum for the year,” said Chinese Ambassador Lu Mei. “China firmly holds its position as Azerbaijan’s fourth-largest trading partner and the second-largest source of imports, while also supporting the expansion of Azerbaijani exports to the Chinese market through Chinese e-commerce platforms.”

At the same time, Chinese companies already have a portfolio of localisation projects in Azerbaijan, including textile manufacturing, tractor production, cardboard manufacturing, as well as initiatives in sericulture and cotton farming.

Most recently, it was announced that Chinese components and technology will be used by Qarabike LLC, a local company that has been granted resident status in the Aghdam Industrial Park. In the initial phase, a factory will be established with a planned annual output of over 44,000 bicycles, with the potential to scale up production to 70,000 units in the future.

Azerbaijani-Chinese cooperation in the tourism sector is also developing rapidly. Since July 2024, Chinese citizens have been able to travel to Azerbaijan visa-free using ordinary passports. On June 10 of this year, President Ilham Aliyev ratified an intergovernmental agreement signed in April in Beijing, titled “On Mutual Visa Exemption for Citizens Holding Ordinary Passports,” which grants the same rights to Azerbaijani citizens.

These steps are boosting mutual tourist traffic. In 2024, the number of visitors from China reached 44,700—double the figure recorded during the pre-pandemic boom. This trend accelerated further in January–April 2025, with the number of Chinese travellers increasing by 70%.