Azerbaijan establishes a Working Group on Investment Cooperation with China

According to the press service of the Cabinet of Ministers, the meeting was chaired by Shahin Mustafayev, Deputy Prime Minister of the Republic of Azerbaijan and Co-Chairman of the Commission, and Lin Ji, Deputy Minister of Commerce of the People's Republic of China and China's International Trade Representative.

Deputy Prime Minister Shahin Mustafayev opened the meeting, stating that the negotiations within the framework of the Intergovernmental Commission serve as an important platform for discussing the implementation of the instructions given by our Heads of State, and also for determining the near-term prospects for the development of relations between Azerbaijan and China.

It was emphasized that as a result of the efforts of the President of Azerbaijan, Mr. Ilham Aliyev, and the President of the People's Republic of China, Mr. Xi Jinping, inter-state relations between the two countries have entered a stage of dynamic and comprehensive development. The personal relationship based on mutual trust and regular contacts between the heads of the two countries is one of the main driving forces behind this development.

It was noted that the elevation of relations between Azerbaijan and China to the level of strategic partnership last year is a historic event. The Joint Declaration signed by the Heads of State forms a solid foundation for the further expansion of cooperation between our countries.

The continuous development of cooperation in the trade and economic sphere was specially highlighted, with China being one of Azerbaijan's main economic and trade partners. At the same time, it was noted that Azerbaijan is also China's largest trading partner in the South Caucasus. The growth trend in trade turnover between the two countries reached 21% ($3.7 billion) last year. The positive dynamics were maintained during the first three months of this year, with the volume of mutual trade increasing by 37% ($1.02 billion). Azerbaijan once again declared its interest in expanding the export of agricultural and food products, in particular, to China.

The positive dynamics observed in investment cooperation in the fields of industry, oil and gas, petrochemicals, "green" energy, high technologies, innovations, and space were also noted. The volume of investments directed from China to Azerbaijan reached $942 million. At the same time, the total volume of Azerbaijani investments in China, including those from the State Oil Fund, has increased to approximately $2.1 billion.

Furthermore, within the framework of the upcoming visit of the President of Azerbaijan to China, a project for the localization of electric bus production in Azerbaijan, in cooperation with the BYD company, will be launched.

Cooperation in the field of green energy is a strategic priority between the two countries. Deputy Prime Minister Shahin Mustafayev noted that Azerbaijan possesses great potential in this area, while China has extensive technological resources and rich experience. The parties believe that joint efforts will guarantee successful cooperation in this direction.

Deputy Prime Minister Shahin Mustafayev stated that cooperation in the field of transport and transit is also successfully developing. It was reported that the volume of transit shipments between Azerbaijan and China increased by 86% (378 thousand tons) in 2024. Large-scale projects being implemented in Azerbaijan to develop transport infrastructure and increase transit potential were discussed – the Baku International Sea Trade Port, the Baku-Tbilisi-Kars railway line, and other transport corridors. These projects form the shortest and most efficient route from China to Europe and vice versa.

The broad opportunities arising from the new realities in the liberated territories were specially emphasized. Deputy Prime Minister Shahin Mustafayev provided detailed information to Chinese officials about the modern infrastructure projects being implemented and the future economic prospects in the liberated territories, inviting Chinese companies to invest in these areas.

It was stated that the restoration of the region's transport and communication system promises great prospects, and the realization of the Zangezur corridor will serve peace and security, making a significant contribution to the "Belt and Road" project as part of the Middle Corridor.

Mr. Lin Ji, Deputy Minister of Commerce of the People's Republic of China and China's International Trade Representative, emphasized that his country attaches special importance to economic ties with Azerbaijan. He noted that China is interested in expanding the volume and variety of products imported from Azerbaijan, drawing attention to the fact that pomegranate products and wine, in particular, have gained great favor with buyers in China. It was also noted that there are broad opportunities for the export of poultry meat, hazelnuts, and almonds to China.

In addition, Mr. Lin Ji expressed his support for Azerbaijan's initiatives regarding membership in the World Trade Organization (WTO) and stated his readiness to work jointly with official Baku in this direction.

Chinese officials expressed their interest in expanding mutual investments and trade and proposed increasing the number of Azerbaijani trade houses in China.

It was noted at the meeting that effective cooperation ties have been established between Azerbaijan and China in the development of sericulture, and this cooperation is expected to manifest itself more prominently in the restoration of the liberated territories. For instance, 130,000 mulberry seedlings have already been brought in by partners for planting in the city of Khojaly. The project is predicted to yield successful results.

It was noted that relations in the field of tourism are developing positively. Mutual tourist flow is increasing dynamically. A significant increase in the number of Chinese tourists visiting Azerbaijan was recorded last year. Azerbaijan's unilateral cancellation of visas for Chinese citizens played an important role here.

The signing of an Agreement on mutual visa-free travel is expected within the framework of the President of Azerbaijan's visit to China. This will give a serious impetus to contacts between our countries and will serve to increase the number of mutual visits.

Opportunities for deepening cooperation in the fields of IT, space industry, high technologies, healthcare, and tourism were also widely discussed at the 10th meeting of the Azerbaijan-China Intergovernmental Commission on Trade and Economic Cooperation. Confidence was expressed that the President of Azerbaijan's planned visit to China in the near future will raise relations between the two countries to a new stage. Lin Ji, Deputy Minister of Commerce of the People's Republic of China and China's International Trade Representative, emphasized that his country attaches special importance to cooperation with Azerbaijan in the Caucasus region and supports all initiatives that are in line with national economic interests.

As a result of the discussions, it was decided to establish a Working Group on Investment Cooperation. This body will be an important platform for keeping investment issues under constant focus.

At the conclusion of the meeting, the Memorandum of Understanding on the Establishment of the Joint Working Group on Investment Cooperation and the Protocol of the 10th Meeting of the Azerbaijan-China Intergovernmental Commission on Trade and Economic Cooperation were signed.