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World Trade Expo Azerbaijan 2022
( China Created Fair )

China – Azerbaijan Economic Exchange and Development

The “One Belt, One Road” China-Azerbaijan enterprise signing ceremony was held in Beijing on the 24th. The Minister of Economy of Azerbaijan and the Chairman of the Azerbaijan-China Economic and Trade Cooperation Committee, Sasin Mustafaev, said that the two companies signed 10 contract documents and memoranda with a total value of more than 820 million dollars on the same day. Establish a new “partnership” and strengthen economic and trade exchanges between the two sides.
Azerbaijan, located at the junction of Asia and Europe, is the “crossroads” of the “heartland” of the Eurasian continent and the intersection of traffic corridors, connecting the vast areas of Central Asia and Europe, the Middle East and Russia. With its superior geographical position, Azerbaijan has become one of the important passages on the ancient Silk Road and played an important role in the ancient East-West trade network.
“The products manufactured in Azerbaijan can meet local needs and export to neighboring countries with the advantage of the portal.” Temur revealed that the Baku-Tbilisi-Kars railway to the Georgian border is officially put into operation. The Caspian Transport Corridor will be one of the shortest and safest railway lines connecting China and Europe. In addition, the country’s international maritime trading port has been operating since last year.
Azerbaijan’s economy relies mainly on oil and natural gas, and the government is promoting an economic diversification strategy, with plans to achieve 80% of GDP by non-oil industry by 2020. “We and China are interested in promoting cooperation in these areas: agriculture, oil and gas, international transportation and investment, communications and information technology, setting up production lines in the industrial sector, and expanding trade and tourism cooperation,” he said.
According to reports, Azerbaijan is promoting economic reforms. In order to attract investment, on the one hand, it has formulated a number of preferential policies, including land and property taxes exempted for a certain number of years in industrial and technological parks, foreign investment and repatriation of profits, no technology transfer. And foreign exchange restrictions; on the other hand, take advantage of the portal, strengthen infrastructure construction, build a new Baku international shipping port, open up new routes, and sign free trade agreements with many countries.
Azerbaijan has prioritized agriculture and food, small and medium-sized enterprises and consumer goods, heavy industry and machinery, tourism, logistics and trade, housing, vocational education, financial services, telecommunications and IT, and utilities. In the past 15 years, the country has received $250 billion in investment and the economy has grown more than threefold.
“In the process of building a ‘One Belt, One Road’, China and Azerbaijan have their own advantages, and the cooperation in many fields is highly complementary and has great potential for cooperation.” In 2018, the trade volume between China and Azerbaijan reached US$1.3 billion. Doubled in 2013. Temur said that the trade between the two sides has maintained a good momentum and the future trade volume will continue to increase.
It is understood that Azerbaijan is China’s largest trading partner in the South Caucasus – 45% of China’s trade with the region comes from Azerbaijan. In recent years, China has seen the potential of Azerbaijan’s trans-Caspian transport corridor and expressed support for the corridor project. The AIIB provided loans to Azerbaijan’s “Across Anatolia” gas pipeline project. China and Arab countries will also start negotiations on preferential trade agreements.
Azerbaijan is also further expanding and enhancing bilateral trade with China. Temur revealed that the country has recently set up four business representatives around the world, one of which is in China. “We opened two wine centers (located in Chengdu and Xi’an) and a trade center (located in Zhangzhou) in China last year. In the future, we plan to set up a center in Urumqi to expand the promotion channels for quality products.”
The “Belt and Road” is not only a road to development and prosperity, but also a road to civilization. The exchanges between the two sides in the humanities are also strengthening. At the seminar, Azerbaijan HIS Travel Agency representative in China, Alia Haschmowa, said that Azerbaijan welcomed more than 10,000 Chinese tourists in 2017 and welcomed more than 12,000 Chinese tourists in 2018, an increase of 20%. . “The good news is that in the first quarter of this year alone, the growth rate of Chinese tourists has reached 45%.”

According to Azerbaijan Customs statistics, Azerbaijan’s imports amounted to US$7.905 billion in 2018, an increase of 27.95% year-on-year. China is Azerbaijan’s fifth largest trading partner and the third largest source of imports. Gross domestic product: 79.973 billion manat (about 46.9 billion US dollars), per capita GDP: 8126.2 manat (about 4780.1 US dollars).
In 1818, 118,000 new jobs were created. The average monthly salary of workers nationwide is 544.1 manat (about $320). As of 2019, the population of Azerbaijan has grown year by year, reaching 103.127 million. In the first half of 2019 alone, the population was more than 122,000. The population growth and rejuvenation have injected more vitality into the local market!
Azerbaijan’s machine manufacturing and light industries are relatively backward. Most consumer goods are imported. In recent years, the government has strengthened macroeconomic regulation and control, while focusing on the development of the petroleum industry, while emphasizing the development of various economies, actively introducing foreign capital, promoting the development of small and medium-sized enterprises, and the macroeconomic situation tends to improve.
Azerbaijan, located at the junction of Eurasia, has a stable political situation and relies on energy for its economic development. The Afghan government pays attention to economic restructuring and emphasizes the development of the non-oil and gas economy in the economy. Azerbaijan is an important partner country along the “Belt and Road”. The “Belt and Road Initiative” will promote China-Arab cooperation in transportation facilities, trade, agriculture and tourism, and help China expand its influence and expand strategic security space in Central Asia. Azerbaijan’s market, business environment, backward infrastructure in non-oil and gas fields, and the security situation in the Transcaucasian region and the game of big countries in the region will all become challenges for China-Arab cooperation in the future.