In an exclusive interview with the Azerbaijan State News Agency (AZERTAC), Zhiqun Zhu, Professor of Political Science and International Relations at Bucknell University, U.S. highlighted the growing relations and strategic partnership between China and Azerbaijan. He also mentioned the potential of trade and economic cooperation, as well as collaboration between the two countries in the field of renewable energy.

AZERTAC presents the interview:

- How do you assess the potential of trade and economic cooperation between Azerbaijan and China? How do you assess the investment climate between the two countries and what is the level of Chinese investment in Azerbaijan?

- Relations between China and Azerbaijan have grown steadily since the two countries established diplomatic relations in 1992. China was one of the first countries to recognized Azerbaijan’s independence. All political forces in Azerbaijan have generally advocated strengthening friendly cooperation with China.

High-level contacts between the two sides are frequent. Most recently, President Xi Jinping and President Ilham Aliyev met during the Shanghai Cooperation Organization summit in Astana in July 2024, when the two leaders declared the elevation of bilateral relations to “strategic partnership”.

According to statistics from the Chinese Foreign Ministry, bilateral trade reached US$1.38 billion in 2022 and rose to US$1.72 in 2023. However, according to data from Azerbaijan's State Customs Committee, China-Azerbaijan bilateral trade was US$3.1 billion in 2023. Trade and investment are poised to grow further as the two countries implement their strategic partnership. Azerbaijan is an important link in China’s Belt and Road Initiative. Currently Azerbaijan is the largest market in the South Caucasus for Chinese goods, and it has huge potentials to attract more Chinese investment.

In addition to trade and investment, cooperation in other areas such as education, tourism, sports, technology and media has also been growing. The two sides also jointly operate two Confucius Institutes in Azerbaijan.

- What opportunities exist for the implementation of joint Azerbaijani-Chinese projects in third countries?

- In addition to bilateral cooperation, the two countries also seek cooperation at multilateral forums such as Shanghai Cooperation Organization (SCO) and through global projects such as China’s Belt and Road Initiative.

Azerbaijan has applied to upgrade its legal status with the SCO from dialogue partner to observer, with full membership possibly in the near future. Azerbaijan has also expressed interest in joining the BRICS group of developing economies. China plays a pivotal role in both SCO and BRICS, so Azerbaijan’s participation in these groups offer new opportunities for bilateral cooperation.

In addition, through third countries which share good relations with both sides such as Turkey and Georgia, there are opportunities for expanding China-Azerbaijan cooperation.

- The two countries are implementing a large number of bilateral and multilateral projects within the framework of the Belt and Road and Middle Corridor initiatives. What are China's expectations and results from the implementation of these projects? How do you assess the role of Azerbaijan in the implementation of the Belt and Road initiative?

-In July 2024, the two countries established the strategic partnership, which shows the importance China attaches to Azerbaijan in its global strategy. Azerbaijan has become an important nod in China’s Belt and Road Initiative, serving as a conduit to the rest of South Caucasus and Europe as well as the Middle East. The prospect for further cooperation looks promising.

- Today, China has become a powerful player in the international economic arena. How did this happen?

- Deng Xiaoping’s “Reform and Opening up” policy in the post-Mao era helped liberalize China’s economy and unleash the Chinese people’s entrepreneurship. China’s economy started to take off in the 1980s and 1990s. It replaced Japan as the world’s second largest economy in 2010. Since then China’s economy has continued to grow, narrowing the gap with the United States. Though China’s growth has slowed down in recent years, its trajectory remains strong.

China has investments around the world. Despite Western political and technological pressures on China in recent years, trade between China and many Western countries has continued to grow. And to diversify its trading partners, China has expanded trade with the Global South, including countries in Central Asia, Southern Europe, the Middle East, Southeast Asia, Africa and Latin America. With its growing trade and influence around the world, no doubt China has become a major force in today’s international political economy.

- The shortest route from China to Europe runs through Azerbaijan. Do you see prospects for increasing cargo transportation through Azerbaijan?

- Definitely. Azerbaijan is a critical link in China’s growing trade with and investment in Europe. The two countries can work together to strengthen cooperation on transportation, which will not only benefit themselves, but greatly facilitate China-Europe trade and other exchanges.

For example, due to its location, Azerbaijan can serve as a link between Asia and Europe and can facilitate east-west and south-north transportation, including the stable operation of China-Europe Railway Express.

- China is one of the world leaders in the field of renewable energy. Azerbaijan, in turn, has directed its development in this direction. Is there cooperation in this area under discussion?

-It’s the global trend to develop green economy. Both China and Azerbaijan emphasize renewable energy and sustainable development now. Therefore, renewable energy will be a new area the two countries can increase cooperation for mutual benefit.

- How do you assess the prospects for tourism exchange between our countries after the pandemic? Can Azerbaijani tourists hope for a simplified visa regime from China?

- There is a huge potential to expand tourism and cultural exchanges between the two countries. Azerbaijan is likely to become a new destination for many middle class Chinese travelers. Perhaps Azerbaijan can more actively promote its natural beauty, its abundant resources, and its rich culture and history to potential Chinese tourists.

From July 20, 2024 to July 20, 2025 citizens of China are eligible to enter Azerbaijan visa free 3 times within a year, and the period of stay at each entry is up to 30 days.

Right now, citizens of Azerbaijan need a visa to visit China. One hopes that China can simplify visa applications for Azerbaijani tourists, and perhaps allow them to enjoy visa-free status soon.

Since COVID, China has simplified visa applications for foreigners and adopted visa-free policies for dozens of countries. It is expected that China and Azerbaijan may announce more convenient policies for travelers from both sides.

- Today, Chinese electric vehicles are entering the European market, which causes jealousy in many European countries. If a ban is imposed by Europe, does China plan to choose other markets, including Azerbaijan?

- The European Union has recently imposed tariffs on Chinese electric vehicles (EVs) as a way to deal with competition from China. I’m sure China will seek to expand and diversify its EV market in other regions and countries. If Azerbaijan has appetite for Chinese EVs, it could become a new market for such EVs. The two countries can definitely explore cooperation in this regard. Jointly producing EVs and selling them in the European and other markets may also be an option.