Azerbaijan-China trade ties in focus

By Azernews

By Leman Mammadova

A delegation consisting of officials and businessmen headed by the Minister of Economy of Azerbaijan and co-chairman of the Azerbaijan-China Intergovernmental Trade-Economic Cooperation Commission Shahin Mustafayev was on an official visit to Beijing, China, from February 25 to March 1.

Mustafayev held a number of meetings during his stay in China, and also took part in the seventh meeting of the intergovernmental commission on trade and economic cooperation between Azerbaijan and China.

In particular, during a meeting with President of the China National Electrical Engineering Co. (CNEEC) Zhang Yanfei, the organization of tire manufacturing in Azerbaijan was discussed.

The sides exchanged views on the possibilities for developing cooperation and the company’s activities in Azerbaijan. It was noted that CNEEC is interested in cooperation with Azerbaijan.

The seventh meeting of the Azerbaijani-Chinese Intergovernmental Commission, co-chaired by head of the Eurasia Department of the Ministry of Commerce of China Luo Weidong, was held during the visit.

Adressing the meeting, Mustafayev highlighted the history of the successful bilateral cooperation between the two countries. He noted that the Sino-Azerbaijani relations are based on friendship and mutual trust.

It was noted that the trade turnover between the two countries amounted to $1.3 billion in 2018. It was also noted that Azerbaijan accounts for 43 percent of China’s trade with the countries of the South Caucasus. However, there is potential for increasing the volume of trade.

Almost 120 companies with Chinese capital operate in Azerbaijan. The total investment value of Chinese companies in Azerbaijan is more than $800 million.

The Azerbaijani minister invited Chinese companies to benefit from the favorable business and investment environment in Azerbaijan and establish joint ventures in the country`s industrial parks and hubs.

Speaking about the possibilities of cooperation in the field of transport, Mustafayev hailed China's One Belt, One Road initiative, saying that Azerbaijan is one of the first countries to support this strategy and is closely involved in its implementation. Minister noted that the use of the Trans-Caspian International Transport Route (TITR) within the One Belt One Road initiative opens up broad opportunities for cooperation in the fields of economy, especially investments, trade, transit.

Co-chair of the commission, head of the Eurasia Department of the Ministry of Commerce Luo Weidong expressed China`s interest in developing relations with Azerbaijan. He shared his views on the prospects for development of these ties.

Weidong emphasized that Azerbaijan is a key trade partner of China in the South Caucasus region. He also praised the commission`s role in expanding Azerbaijani-Sino economic and trade relations and promoting new cooperation opportunities.

The meeting ended with the signing of the protocol that envisages the expansion of cooperation in industrial, agricultural, transit, logistics, trade, investment, ICT, financial, tourism, humanitarian and other areas.

Within the visit to China, Azerbaijani delegation led by Mustafayev, held several meetings.

At the meeting with China's Minister of Commerce, Shahin Mustafayev said that Azerbaijan attaches great importance to bilateral relations with China and is interested in expanding these ties in all spheres.

Azerbaijan has taken many steps towards the development of bilateral trade relations with China. It was noted that export missions to China are being organized, Azerbaijan's trade representative operates in China, Azerbaijan's wine houses in Urumqi and Shanghai, Azerbaijan’s Trade House in Liuzhou.

This year Ministry of Economy is planning to organize three more export missions to China.

It should be noted that Ministry of Economy and the Azerbaijan Export and Investment Promotion Foundation (AZPROMO) organized the first export mission of this year to Beijing, China on 25 February-1 March. The mission included 16 Azerbaijani companies operating in the field of food, wine and other alcoholic drinks. Within the framework of the export mission, a roundtable was held with the participation of Chinese and Azerbaijani companies, information was given about Azerbaijani products. The sides exchanged views on increase of export.

Since March 1, the sale of Azerbaijani wines has already been launched in China's BHG markets.

At the meeting with Chinese Minister of Transport Li Xiaopeng, it was noted that Azerbaijan attaches great importance to transport and transit cooperation with China and is interested in the development of relations.

It was emphasized that Azerbaijan is expanding its cooperation with the countries on the "One Belt, One Road" Initiative, and is continuing to develop Trans-Caspian International Transport Route.

The Chinese side, in its turn, said it supports Trans-Caspian International Transport Route.

During the meeting, in order to promote Trans-Caspian International Transport Route, the sides discussed the establishment of the Working Group for the promotion of joint activities, expansion of cooperation between relevant railway authorities, the development of transport links and other issues.

In the discussions with Chinese Minister of Industry and Information Technology Miao Wei, joint projects in the field of industry and ICT in Azerbaijan, joint efforts to implement Trans-Eurasian Information Super Highway (TASIM) project and other issues were discussed.

The sides exchanged views on creation of joint ventures in the fields of mechanical engineering, metallurgy, pharmacy and expansion of mutual investment in industrial parks established in Azerbaijan.

During the meeting with Vice Chairman of the National Development and Reform Commission, director of the National Bureau of Statistics of China Ning Jizhe, the importance of promoting the Trans-Caspian International Transport Route in China was discussed and discussions on expanding cooperation in transport, transit, industrial, agricultural and other spheres were held.

During the visit, a protocol “On cultural cooperation for 2019–2023 between the Ministry of Culture and Tourism of China and the Ministry of Culture of Azerbaijan” and the Memorandum of Understanding “On simplifying group visits of Chinese tourists to Azerbaijan” between the Ministry of Culture and Tourism of China and the State Tourism Agency of Azerbaijan, were also signed.