Chinese tire producer enters local market

China National Electrical Engineering Co., Ltd. (CNEEC) and the Azerbaijan Investment Company OJSC signed a Memorandum of Understanding.

The Economy Ministry reported that the MoU was signed during a meeting of the Economy Minister, CoChair of the Azerbaijan-China Intergovernmental Commission for Trade and Economic Cooperation Shahin Mustafayev with CNEEC Vice-President Zheng Chengjun.

Mustafayev underlined the successful development of the Azerbaijani-Chinese relations and the importance of the political will of the presidents of Azerbaijan and China in the expansion of cooperation between the two countries. It was noted that the high level of political relations between the two countries positively contributed to the expansion of economic cooperation, investments and trade relations.

Azerbaijan supports China’s “One Belt - One Road” strategy. It was stressed that the MoU on the joint promotion of the “Silk Road Economic Belt”, signed during the visit of the Azerbaijani President to China in 2015, encouraged development of transport and transit cooperation and the use of Trans-Caspian Transit Corridor by Chinese companies.

In turn, Vice-President of CNEEC expressed his satisfaction with the cooperation of the company with Azerbaijan and stressed that he took part in realization of several projects in Azerbaijan.

The cooperation between China and Azerbaijan strongly contributes to the realization of the Great Silk road program.

The Great Silk Road is a general name of a caravan road, which has been the main two-way trading bridge of East and West since the 3rd century BC up to now. The Great Silk Road starts in Japan and China stretches up to Europe cutting through India, Afghanistan, Iran, Central Asia, Caucasus,Asia Minor, Northern Africa including connecting the Indian Ocean, the Chinese Sea, the Japanese Sea, the Red Sea, the Caspian Sea, the Black Sea, the Sea of Azov and the Mediterranean Sea.

China became Azerbaijan’s 4th largest trading partner in 2017. Customs data of Azerbaijan estimated bilateral trade at a record close to $1.3 billion in 2017, up 33 percent from the previous year.

Exports of Azerbaijani goods amounted to $433.8 million (3.21 percent of total exports), while imports of Chinese products to Azerbaijan reached $854.5 million (9.73 percent of total imports).

In January-September this year, the trade turnover between the two countries amounted to $848.9 million.

Since 2017, Azerbaijan has a trade representative in China, which is important for boosting trade relations. About 50 percent of China’s trade with the South Caucasus accounts for Azerbaijan.

The main export products from Azerbaijan to China last year were chemical products, fuel, and plastics. From China to Azerbaijan over the past year were imported electric equipment, vehicles and spare parts, clothing, ceramic products, household items.

There are over 100 Chinese companies operating in trade, services, industry, construction and other spheres in Azerbaijan.