Baku, Beijing set to launch major joint investment fund Article by Chinese portal

As Caliber.Az earlier reported, Azerbaijan’s Minister of Economy, Mikayil Jabbarov, held a meeting with Si Xinbo, Vice President of the Silk Road Fund. The discussions focused on strategic initiatives designed to broaden and diversify economic ties between Baku and Beijing, reflecting both countries’ intent to deepen bilateral cooperation.

The Chinese portal Seetaoe published an article covering the meeting.

“Azerbaijan's Minister of Economy Jabarov held a meeting with the Vice President of the Silk Road Fund, Si Xinbo, and the two sides had in-depth discussions on establishing a joint investment fund. This measure aims to deepen the investment and financing cooperation between the two countries under the the Belt and Road framework, provide stable financial guarantee for projects in energy, infrastructure, green industry and other fields, and promote the deepening and implementation of China Arab comprehensive strategic partnership," the article notes.

According to the piece, bilateral investment data shows significant growth in 2025, with Azerbaijan's direct investment in China reaching 9.9 million US dollars, a year-on-year increase of 2.6 times; China's direct investment in Azerbaijan reached 26.8 million US dollars, a year-on-year increase of 52.3%, but the mutual investment between the two sides accounted for only 0.4% of their respective total foreign investment, indicating broad room for improvement in the future.

“The core topic of the meeting between Minister Jabarov and Vice President Sixinbo is to explore the specific path for Azerbaijan Investment Holding Company and the Silk Road Fund to jointly establish a joint investment fund. Both parties exchanged views on the project implementation mode and diversified financing schemes.

Azerbaijan hopes to attract more Chinese capital to participate in its economic construction through this platform, while the the Silk Road Fund regards it as an important starting point for deepening Eurasian connectivity and green investment layout. This high-level docking marks the upgrade of financial cooperation between the two countries from scattered project financing to a systematic and institutionalized direction,” the article added.

“Data shows that China Arab investment cooperation is entering the fast lane. In 2025, Azerbaijan's direct investment in China will increase by 2.6 times compared to 2.8 million US dollars in 2024, reaching 9.9 million US dollars; During the same period, China's direct investment in Azerbaijan increased from $17.6 million to $26.8 million, an increase of over 50%.

The two countries will establish a comprehensive strategic partnership in April 2025 to link the the Belt and Road initiative with the strategy of Azerbaijan to revive the Silk Road. At present, China is Azerbaijan's fourth largest trading partner and the largest source of imports, while Azerbaijan is China's largest trading partner in the South Caucasus region.”

The piece further observes that Azerbaijan is presently navigating a pivotal phase of energy transition and infrastructure modernization, while China possesses significant technological and financial strengths across sectors including renewable energy, transportation, and advanced manufacturing.

“The joint investment fund will operate in a market-oriented manner, focusing on supporting Chinese enterprises to participate in the construction of wind power, photovoltaic, free trade zones and other projects in Azerbaijan, while promoting Azerbaijan's exports of oil and gas and agricultural products to China. Keywords: the Belt and Road news network, infrastructure, green industry.

At present, China Power Construction's 240 MW wind power project and BYD's bus factory have been implemented. The establishment of joint funds will accelerate the replication of these benchmark projects, form a complete closed loop of investment, construction, and operation, and build a cross-border industrial ecosystem. The joint investment fund will fill the long-term capital gap and assist in the implementation of key projects such as green energy, transportation and logistics, and industrial parks,” the article concluded.

By Vafa Guliyeva