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Azerbaijan–China relations: political and economic panorama [ANALYSIS]

16 1
01.09.2025

Since establishing diplomatic ties in 1992, Azerbaijan and China have fostered steadily deepening collaboration across multiple fields, including political, economic, infrastructural, and institutional. Azerbaijan’s strategic position along both East–West and North–South corridors has rendered it an essential partner within China’s Belt and Road Initiative (BRI).

Certainly, since the economy is the leading segment at the forefront of all forms of cooperation, it would be more logical to first examine the trade relations between Azerbaijan and China, the world’s second-largest power. Thus, trade has surged, through which bilateral foreign trade turnover rose from approximately USD 1.3 billion in 2018 to USD 3.2 billion in 2023, representing a 2.4-fold increase. In 2024 alone, trade volume rose another 20.7% to reach USD 3.744 billion. China now accounts for nearly 8% of Azerbaijan’s foreign trade turnover and is the leading source of imports at nearly 17.7%.

Besides, Chinese direct investment in Azerbaijan since 1995 has reached USD 920 million, with Azerbaijani investments in China roughly double that figure. Currently, 375 Chinese-capital companies are registered in Azerbaijan (298 active), engaging in infrastructure, liberated-territory projects, and digital transformation, such as Huawei-supported smart-village and smart-city developments.

Moreover, transit and logistics form a vital pillar. Azerbaijan’s Middle Corridor (the Trans-Caspian International Transport Corridor) connects China to Europe via Kazakhstan, the Caspian Sea, Georgia, and Turkiye. It has reduced shipping from 10,000 km to around 7,000 km, cutting transit time, and container traffic has surged 2.5-fold between 2020 and 2024, with projections forecasting a three-fold rise and further cuts to transit time by 2030.

Beyond economics, cooperation spans science, technology, agriculture, telecommunications, culture, and humanitarian exchange. Strategic multilateral frameworks include the Azerbaijan–China Intergovernmental Trade and Economic Cooperation Commission, AIIB-supported projects, multiple Azerbaijan Trade Houses in Beijing, and alignment of the BRI with Azerbaijan’s national strategies, the "Revival of the Silk Road" and the 2030 Socio-Economic Development Strategy.

Behind all these successful forms of cooperation, it is, of course, worth emphasising the role of the strategy and diplomacy........

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