VIDEO: Where does China see investment opportunities in Azerbaijan?
In order to increase bilateral economic cooperation, Baku and Beijing need to strengthen trade relations and continue to increase trade volumes, focusing on both import and export. As of January-February 2024, trade between the two countries has increased by 25%.
Below we present the views of President and Founder of the Center for China & Globalization, Huiyao Wang , on trade and cooperation between Azerbaijan and China."Emphasis should be on maintaining this growth trajectory and also enhancing green and sustainable development. Collaborating on establishing a productive base for new energy vehicles in Azerbaijan, leveraging China's expertise in this sector, and aiding Azerbaijan's green transition is a good idea," the expert said.
He added that infrastructure development should include the further development of the Trans-Caspian International Transport Corridor, including the Baku-Tbilisi-Kars railway and other logistic hubs like the Alat Logistics Center. This will improve connectivity and facilitate smooth trade flows.
"Under sectoral diversification, there are many things that can be done - expanding cooperation into various sectors such as information-communication technology, agriculture, green economy, and renewable energy. Those areas hold significant potential for mutually beneficial projects," he noted.
"So in terms of financial cooperation, there is potential to deepen financial ties, particularly focusing on leveraging Azerbaijan's membership in the Asian Infrastructure Investment Bank (AIIB) for further funding joint projects. Sectors of Azerbaijan's economy attractive to Chinese investment include oil and gas exploration and extraction, utilizing Azerbaijan's status as an oil producer to attract Chinese investment in advanced exploration and extraction technologies," the expert pointed out.
He also said that in machinery manufacturing, promoting joint ventures and partnerships can enhance industrial capacity and technology exchanges, while industrial parks and economic zones like the Alat Free Economic Zone are another area for Chinese investment to foster a conducive environment for manufacturing and export-oriented businesses. "In agricultural processing, it is necessary to develop partnerships in the agricultural processing sector, focusing on adding value to agricultural products, and enhancing food security," the expert added.
"Of course, there is renewable energy. Attracting investment in renewable energy projects, capitalizing on Azerbaijan's potential in solar and wind energy, and aligning with global sustainability goals are crucial areas. There are many more sectors. Cooperation in ICT and the digital economy can leverage China's advancements in these fields to boost Azerbaijan's digital infrastructure and innovation capacity," he noted.
He proposed that Azerbaijan companies engage more proactively in business forums and trade exhibitions in China to showcase investment opportunities for strategic alliances with Chinese firms, technology transfer and capacity building, leverage government incentives and bilateral agreements to attract Chinese business and focus on creating joint ventures that align with both countries' strategic economic interests.
"Regarding the specific project initiatives for the Karabakh region, infrastructure reconstruction is vital. Engaging Chinese companies in the economic construction of infrastructure, including roads, bridges, and public utilities to restore and enhance connectivity in the Karabakh region is essential. Developing agricultural projects that incorporate advanced Chinese farming technology, focusing on boosting productivity and sustainability is another area of focus," he added.
He went on to say that investing in developing tourism infrastructure, leveraging the historic and cultural heritage of Karabakh to attract Chinese tourists and promote cultural exchange is beneficial. "Also, it is important to implement renewable energy projects such as solar and wind farms to ensure sustainable energy supply for the region, and promote environmental sustainability," the expert noted.
"There are other areas too such as establishing educational institutions and vocational training centers with Chinese collaboration to build skilled workforce tailored to the region's economic needs, creating special economic zones in Karabakh to attract Chinese investment in various sectors, providing tax incentives, and streamlined regulatory processes to facilitate business operations. So these are the areas where we can continue our cooperation," the expert added.
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