Boosting strategic ties: Azerbaijan-China co-operation for regional connectivity and sustainable development

In today’s rapidly evolving geopolitical and economic landscape, it is crucial for nations to seek reliable and trustworthy partners that share common strategic goals and values. Such partnerships not only promote international understanding but also play a vital role in safeguarding national security and ensuring economic prosperity, writes Shahmar Hajiyev.

The friendship between the Republic of Azerbaijan and the People's Republic of China dates back to the early 1990s, when China recognized the independence of Azerbaijan on December 27, 1991. Diplomatic relations were formally established on April 2, 1992. Since then, the two countries have consistently supported each other’s territorial integrity and sovereignty - an issue of great sensitivity to both nations. In this context, Azerbaijan strongly opposes any form of “Taiwan independence” and supports the Chinese government’s efforts toward national reunification. In return, China firmly backs Azerbaijan’s peace agenda and views confrontation-driven geopolitical games as counterproductive.

The foundation of this bilateral relationship was solidified through the first high-level visit by the late President and national leader of Azerbaijan, Heydar Aliyev, to China in 1994. His successor, President Ilham Aliyev, has made three official visits to China (in 2005, 2015, and 2025), each contributing to the deepening of ties between the two nations. In 2016, Azerbaijan became a dialogue partner of the Shanghai Cooperation Organization (SCO), strengthening its regional and international engagement. During the 24th meeting of the Council of Heads of State of the SCO in Astana in 2024, Azerbaijan and China elevated their relationship to a strategic partnership, grounded in mutual respect, equal trust, and shared goals. The agreement laid the foundation for expanded cooperation, enhanced coordination in global affairs, and joint efforts to promote peace, stability, and development.

The most recent visit by President Ilham Aliyev to China in April 2025 opened new avenues for cooperation. On April 23, President Aliyev met with President Xi Jinping in Beijing for an expanded meeting. During this visit, 20 significant cooperation documents were signed, covering a wide range of sectors such as the Belt and Road Initiative, justice, green development, the digital economy, intellectual property rights, and aerospace. A landmark agreement was also signed to mutually exempt visa requirements for holders of ordinary passports, a move expected to significantly boost tourism and people-to-people contacts. Both leaders reaffirmed their commitment to the strategic partnership agreement reached in Astana and emphasized cooperation within international organizations such as the UN and the SCO.

Today, Azerbaijan-China relations are broad-based, encompassing security, trade, energy, transportation, education, and cultural exchanges. President Xi Jinping expressed satisfaction with Azerbaijan’s early support for the Belt and Road Initiative and both leaders acknowledged the increasing volume of goods transported via the Middle Corridor - a vital route for linking China and Europe.

Economic cooperation is at the forefront of the bilateral agenda. The Azerbaijan-China Intergovernmental Trade-Economic Cooperation Commission continues to explore new trade and investment opportunities. In the first two months of 2025, bilateral trade turnover surged to $745.4 million - a 1.5-fold increase compared to the same period in 2024. Discussions have begun for a potential free trade agreement, which would further institutionalize trade and investment relations.

Azerbaijan’s strategy to diversify its economy and reduce dependence on fossil fuels aligns closely with China’s regional connectivity initiatives. The development of the Middle Corridor - a critical part of China’s Belt and Road Initiative - has positioned Azerbaijan as a vital transit hub. In March 2024, a container block train from Xi’an arrived in Baku in just 11 days, underscoring the efficiency and strategic importance of this route.

Azerbaijan has also initiated the development of an eastern branch of the Middle Corridor, connecting China with Central Asia and the Caspian Sea region. This effort led to the establishment of the Eurasian Transport Route International Association. Additionally, joint ventures such as Middle Corridor Multimodal Ltd. and BTKI Railways LLC were created in collaboration with Kazakhstan and Georgia to ensure the corridor’s smooth operation. The total volume of freight transported via the Middle Corridor exceeded 27,000 containers in 2024 - a 25 - fold increase over the previous year. Azerbaijan’s infrastructure is now capable of handling over 1,000 block trains annually.

Cooperation in the energy sector further bolsters bilateral ties. Azerbaijan is committed to sustainable development and the decarbonization of its energy sector. With China leading the world in renewable energy, bilateral projects have emerged to advance green energy development. Nearly 64% of the new renewable electricity generated in 2024 was in China. During COP29, Memorandums of Understanding were signed with PowerChina Resources Limited and TBEA Co. Ltd. for large-scale renewable energy projects, including solar PV, wind power, pumped hydro-storage (PHS), and battery energy storage systems (BESS). These projects also include training programs and technology exchanges to build local expertise. On April 24, President Ilham Aliyev met in Beijing with Song Hailiang, Chairman of the Board of China Energy Engineering Corporation Limited (Energy China). China Energy is currently implementing several projects in Azerbaijan. The company is the contractor for a 1-gigawatt offshore wind energy megaproject in the Caspian Sea and has also invested in solar energy and other projects in the liberated Fuzuli district.

Moreover, BYD, a leading Chinese electric vehicle manufacturer, signed an agreement to establish a commercial vehicle manufacturing base in Azerbaijan’s Sumgayit Chemical Industrial Park. The plant is expected to produce 200 electric buses annually between 2025 and 2028. In preparation for COP29, BYD delivered 160 custom-designed electric buses to Azerbaijan. During the recent visit Azerbaijan and China have also reached agreement on the construction of new solar and wind power plants in Azerbaijan and a battery energy storage system. All these energy agreements will support energy diversification and sustainable development goal of Azerbaijan.

In conclusion, the deepening of Azerbaijan-China relations reflects shared strategic interests and mutual aspirations for regional development and global cooperation. As a key player in energy and transportation, Azerbaijan is a trusted and important partner for China. Perhaps, strengthened cooperation between the two nations will promote interregional connectivity, support sustainable development, and drive regional economic integration. Positioned as a key transit hub along the Middle Corridor, Azerbaijan plays an essential role in connecting China with Europe and beyond.

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