China-Azerbaijan Cooperation: A Strategic Choice for Chinese Enterprises in a Changing Global Landscape.

Against a backdrop of global turmoil, rising geopolitical risks, and mounting challenges to global economic governance, China has remained committed to openness, cooperation, and mutual benefit, steadily advancing friendly ties with countries worldwide. On March 25, Zhao Leji, Chairman of the Standing Committee of the National People’s Congress of China, met with Sahiba Gafarova, Speaker of the Milli Mejlis (National Assembly) of Azerbaijan, in Boao, Hainan, during the Boao Forum for Asia Annual Conference 2026. The two sides reached important consensus on deepening China-Azerbaijan relations.

Zhao Leji noted that under the strategic guidance of President Xi Jinping and President Ilham Aliyev, China-Azerbaijan relations have entered a new stage of high-quality, all-round development. China stands ready to work with Azerbaijan to follow the important consensus reached by the two heads of state, carry forward the fine tradition of mutual support, open up new space for win-win development, expand economic and trade investment, enhance connectivity, promote people-to-people bonds, and jointly advance the building of a community with a shared future for mankind. For her part, Gafarova reaffirmed Azerbaijan’s firm adherence to the one-China principle and expressed readiness to strengthen cooperation across all fields and deepen exchanges between legislative bodies.

Notably, just one week prior to the meeting, on March 13, the TIR international road transport route from the SCO Demonstration Zone to Azerbaijan was officially launched. A convoy carrying high-end manufacturing equipment from Chinese brands departed Qingdao, traveling along the “China-Kazakhstan-Russia-Azerbaijan” corridor and reaching Baku in just 13 days—halving the traditional maritime shipping time. This new logistics channel provides efficient and convenient support for Chinese enterprises to expand into West Asian markets.

West Asia and the Caucasus: A Key Direction for Chinese Enterprises “Going Global”

As a vital node along the Belt and Road Initiative, Azerbaijan sits at the crossroads of Eurasia, bordering the Caspian Sea to the east, Russia to the north, and Iran to the south, serving as a critical hub connecting Central Asia, Europe, and the Middle East. In July 2024, the two countries issued a Joint Statement on Establishing a Strategic Partnership; in April 2025, bilateral relations were further elevated to a Comprehensive Strategic Partnership, accompanied by the signing of an agreement on mutual visa exemption for ordinary passport holders. Bilateral trade reached $2.47 billion in 2024, surging 43.3% year-on-year; from January to September 2025, it hit $2.15 billion, up 24.3% year-on-year.

8th Smart Life Expo Azerbaijan: An Ideal Platform for Chinese Enterprises to Explore the Market

The 8th Smart Life Expo Azerbaijan will be grandly held from September 21 to 23, 2026, at the Baku International Expo Center, the capital of Azerbaijan.

1. Authoritative Organizers

Co-hosted by Halis International Exhibition Group, the Azerbaijan Entrepreneurs Association (ASK), the Azerbaijan Small and Medium Enterprise Development Agency (KOBIA), and the Azerbaijan Export and Investment Promotion Agency (AZPROMO).

2. Four Focus Sectors

The expo will run parallel exhibitions covering building materials and decoration, home appliances and consumer electronics, premium products, and automobiles and parts.

3. Vast Market Potential

Rich in oil and gas resources, Azerbaijan is known as the “Little Dubai of West Asia.” However, its domestic production of daily necessities is limited, with most goods relying on imports—especially high-quality products.

4. Extensive Market Reach

Azerbaijan serves as a transit hub for re-export to neighboring markets including Iran, with deep cultural and historical ties facilitating smooth re-export trade.

The Azerbaijani government is vigorously promoting economic diversification. The massive “Khazar Islands” infrastructure project, with an estimated investment of $100 billion and covering 24 square kilometers, will include 60 high-rise residential buildings, 150 schools, 50 kindergartens and hospitals, and multiple commercial centers. Additionally, Azerbaijan imports approximately $2.3 billion worth of building materials, hardware, and decoration products annually, presenting huge business opportunities for Chinese enterprises.

Amid profound and complex changes in the international landscape—where geopolitical conflicts and trade protectionism are intertwined, and global economic recovery faces numerous uncertainties—over-reliance on a single traditional market only increases operational risks. The more uncertain the situation, the more strategic vision is needed to explore diverse, stable, and promising emerging markets.

It is precisely amid such changes that China’s cooperation with Azerbaijan and other Caucasus countries has bucked the trend, entering its best historical period. Azerbaijan boasts political stability, friendly relations with China, and, as a key Belt and Road node, is leveraging its Caspian energy and geographical advantages to drive economic diversification. With the smooth operation of logistics channels such as the China-Europe Railway Express and the Trans-Caspian International Transport Corridor, Chinese goods now reach Azerbaijan and neighboring Caucasus, Central Asian, and European markets far more efficiently, with trade ties growing ever closer.

Against rising trade barriers and market saturation in Europe and the United States, Azerbaijan—with its strategic location, favorable policy environment, and rapid infrastructure development—offers Chinese enterprises a strategic choice to mitigate risks and tap into a “blue ocean” market.

The 8th Smart Life Expo Azerbaijan, taking place in Baku from September 21 to 23, is not only a window to showcase the quality of “Made in China” but also an ideal platform for Chinese enterprises to penetrate the Caucasus region and tap into local infrastructure and consumer demand. We encourage Chinese enterprises to seize this historic opportunity, actively explore this vibrant Eurasian emerging market, gain a competitive edge in the global landscape, and jointly write a new chapter of mutual benefit and win-win cooperation!