Beijing and Baku speed up trade and economic dynamics  Caliber.Az review

Traditionally friendly relations between Azerbaijan and China have recently acquired the character of a strategic partnership based on mutual respect for sovereignty, territorial integrity and mutual support on international platforms. On this basis, Beijing and Baku are accelerating trade and economic ties, implementing joint endeavours in the fields of industry, transport, high technology and green energy. The priority of these trends was once again confirmed during the May 14 meeting between Azerbaijani President Ilham Aliyev and the delegation headed by Shen Yueyue, Vice Chairperson of the All-China Committee of the People's Political Consultative Conference, Chairman of the Chinese Committee of the Shanghai Cooperation Organisation for Good Neighbourliness, Friendship and Cooperation.

During the meeting with the Chinese delegation, President Ilham Aliyev noted the successful development of bilateral relations and stressed that they are based on the principles of friendship, mutual understanding and support.

"Azerbaijan has always supported China's territorial integrity and One China policy," the head of state said, emphasising that the Azerbaijani Foreign Ministry statement condemned the elections held in Taiwan and reiterated its support for China's territorial integrity. President Ilham Aliyev also noted that Azerbaijan pursues policy based on its national interests. Stating that China occupies an important place in the world economy, the head of state emphasised that this is very important for the development of the global economy. "The achievements of the People's Republic of China, including the Chinese economy, under the leadership of Xi Jinping make Azerbaijan happy as a friend and partner. The two countries cooperate very closely in various spheres, and there are real opportunities to raise our ties to a higher level," President Ilham Aliyev said, noting that the number of mutual official visits between Azerbaijan and China at various levels has increased recently, and this serves to strengthen relations between the countries based on the principles of friendship, mutual understanding and support.

In this context, it is worth noting that China's leadership also aims to maximise relations with Azerbaijan: Beijing supports our country's independent political course, its consistent position on protecting the interests of the Global South within the framework of the Non-Aligned Movement, as well as its active participation in the framework of international cooperation on global climate change and the holding of the UN conference - COP29 in Baku. "Your country is now witnessing steady stability and rapid economic growth, and Azerbaijan's power has significantly increased," Shen Yueyue emphasised.

During the conversation, the sides discussed prospects of Azerbaijan-China cooperation in the sphere of renewable energy sources (RES), electric transport, as well as exchanged views on supporting China's "One Belt, One Road" initiative and joint development of the Middle Corridor. It is worth recalling that Azerbaijan is China's largest trading partner in the South Caucasus region: our country accounts for almost 45 per cent of all regional trade. In the post-pandemic period, Azerbaijan-China trade and economic ties have been rapidly recovering, exceeding pre-crisis indicators: thus, in 2022, trade turnover between the countries reached $2.159 billion, increasing by 21.3 per cent, and in 2023 it was possible to increase trade by 44 per cent to a record $3.1 billion. China currently ranks fourth among Azerbaijan's foreign trade partners and second among importing countries.

It is noteworthy that last year the dynamics of Azerbaijani exports to the Chinese market increased by 40%: along with petroleum coke, jet fuel, virgin polyethylene and other petrochemical products, Azerbaijani exporters are increasing supplies of food and wine products, cotton fibre, perfumes, as well as industrial equipment and components. In order to expand the supply of non-oil products under the Made in Azerbaijan brand to the capacious Chinese market, an extensive system of trade and wine houses has been formed in China on the initiative of the Export and Investment Promotion Agency (AZPROMO). In particular, Azerbaijani trading houses operate in Qingdao, Chengdu, Xi'an and Zhangjiajie, while branches of Azerbaijani trading houses operate in Shanghai, Harbin, Jinan and Wuhan, and three wine houses have been established in Urumqi and Shanghai. Another step in this direction was the opening of another trade house of Azerbaijan in the Chinese city of Nanjing on 15 May, as well as the signing of an agreement with Huaian Baimahu Liquor Industry on the purchase of Azerbaijani products. It should be reminded that all these trade and intermediary structures play a huge role in supporting Azerbaijani trade missions, participation of Azerbaijani companies in Chinese exhibitions, organisation of advertising and promotion campaigns in the leading trade networks of the Celestial Empire. Azerbaijan and China actively cooperate within the Trans-Caspian International Transport Route (TITR), an important logistics corridor harmoniously integrated within the framework of China's One Belt, One Road initiative. Today, TMTM is actively used for transshipment of Chinese containerised multimodal block trains transiting through Central Asian (CA) countries, Azerbaijan to Türkiye and Europe.

In turn, in recent years, Baku and Beijing have set out to expand business ties in the field of attracting portfolio investments and implementing joint ventures in the manufacturing sector. Over the past years, Azerbaijan has invested about $1.7 billion in the Chinese economy, and Chinese investments in Azerbaijani projects exceed $800 million, and today about 275 companies with Chinese capital are registered in our country. In turn, Chinese contractors have been involved in various projects in Azerbaijan with a total value of over $600 million. This dynamic has only intensified in recent years with the start of reconstruction work in the Karabakh region: dozens of Chinese companies have applied to participate in infrastructure projects, including the world famous Huawei is already actively participating in the “smart village” and “smart city” projects in the territories of our country liberated from occupation.

And this is just the beginning. Chinese companies are ready to implement projects in Azerbaijan in various sectors, including renewable energy, manufacturing, and cooperation has been established within the framework of industrial parks. In particular, the Ministry of Energy and other relevant departments of Azerbaijan are ready to expand cooperation with a number of leading Chinese corporations to implement joint initiatives in the renewable energy sector. Partnership with Chinese companies in the field of establishing in our country enterprises for the production of solar panels, generators for small HPPs and wind turbines, and other specialised equipment is seen as a promising direction.

Some progress in this direction has been made this year. For example, the Azerbaijan Renewable Energy Agency (AREA) under the Ministry of Energy recently held talks with Chinese companies Powerchina Huadong and China Southern Power Grid on the use of battery and hydro storage technologies. In turn, China Energy Engineering Group Co. Ltd expressed interest in participating in large-scale projects in the field of "green" energy implemented in our country. This year, Azerbaijan started receiving 160 buses with electric motors purchased in China, and since the end of last year, negotiations have been held with Chinese manufacturers (including Yutong) on the establishment of a joint venture and localisation of the production of electric buses in our country.