Deputy Minister: Baku, Beijing in talks on direct investment in Azerbaijan’s non-oil sector

China has become Azerbaijan’s fourth-largest trading partner, according to Elnur Aliyev, First Deputy Minister of Economy of Azerbaijan, speaking at the Azerbaijan-China Economic and Trade Cooperation Conference.

Aliyev noted that the recent elevation of bilateral relations to the level of a comprehensive strategic partnership has created significant opportunities for expanding trade, Caliber.Az reports, citing local media.

“In January–April of this year, trade turnover between Azerbaijan and China increased by 37% and exceeded $1.4 billion,” he said.

The deputy minister highlighted that Azerbaijani trade and wine houses are already operating in Chinese cities such as Beijing, Shanghai, Urumqi, Qingdao, Chengdu, Nanjing, and Zhangjiajie. In addition, the Azerbaijan Trade House is active on the well-known Chinese e-commerce platform JD.com. These commercial centres are contributing to the development of bilateral trade relations, he added.

Aliyev also revealed that Baku and Beijing are currently in negotiations to attract direct investments into Azerbaijan’s non-oil sector, particularly in high technology and innovation, as well as alternative and renewable energy sources.

According to him, deepening investment partnerships with Chinese companies has already facilitated the launch of joint projects in various fields, including industry, green energy, transportation, agriculture, ICT, and sericulture (silk farming).

“As of May 1 this year, around 320 Chinese companies are operating in Azerbaijan in sectors such as industry, agriculture, transport, construction, trade, and services,” he stated.

Aliyev emphasised Azerbaijan’s strong potential in the field of renewable energy and its strategic importance to the country: “Our technical potential for renewable energy stands at 135 GW on land and 157 GW offshore. This sector has recently taken on a key role in our investment cooperation with China. The synergy between Azerbaijan’s solar and wind energy potential and China’s expertise in green technologies has created a favourable environment for implementing joint projects.”

By Tamilla Hasanova