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Nazrin Abdul

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In a world shaped by shifting power dynamics, energy transitions, and new logistics routes, Azerbaijan-China relations are emerging as a strategically significant axis in Eurasia. At the recent SCO Plus meeting held in Tianjin, Azerbaijani President Ilham Aliyev reaffirmed Azerbaijan’s deepening partnership with China, particularly in energy, trade, digitalization, and infrastructure - areas that are rapidly redefining global influence.

“Azerbaijan and China enjoy warm and friendly relations and a comprehensive strategic partnership,” President Aliyev said during his address. “Deepening these relations is one of the important directions of Azerbaijan’s foreign policy.”

This partnership, now elevated to a Comprehensive Strategic Partnership as of 2024, is no longer limited to diplomatic niceties. It is increasingly built on mutual investment, energy innovation, and infrastructural development, aligning with China's global Belt and Road vision and Azerbaijan’s national strategic goals.

Energy sector: From fossil fuels to green innovation

The backbone of Azerbaijan’s economy has long been its hydrocarbon sector, led by the State Oil Company of the Azerbaijan Republic (SOCAR). In recent years, however, Baku has been aggressively pursuing green energy diversification - a policy shift welcomed by Chinese giants like China Energy Engineering Corporation (Energy China).

During his visit to Tianjin, President Aliyev met with Ni Zhen, Chairman of Energy China, a Fortune Global 500 company and one of the world’s largest energy engineering groups. The company operates across more than 80 countries and has played a central role in implementing China’s renewable energy transition.

Their cooperation with SOCAR centers around solar and offshore wind energy development in Azerbaijan. According to Energy China, these projects include photovoltaic power plants and water resource optimization, enhancing not only Azerbaijan’s energy sustainability but also its resilience to climate-driven water scarcity.

“We welcome Chinese investment in green energy as a key step toward achieving Azerbaijan’s climate targets while also modernizing our energy infrastructure,” President Aliyev noted.

This marks a shift in energy diplomacy - Azerbaijan is no longer just a hydrocarbon exporter but a green energy partner capable of attracting technologically advanced, capital-heavy Chinese companies.

Azerbaijan's Alat Free Economic Zone (AFEZ) is fast becoming a regional magnet for high-tech and energy investments. This zone will soon host a solar panel production facility by Sichuan Sunsync Photovoltaic Technology Co., whose chairman, Xie Yi, confirmed during the Tianjin meetings that the facility will be built “to the highest international technological standards.”

Sunsync photovoltaic: Export-driven industrialization

Sunsync is a rising player in China’s photovoltaic market and its investment in AFEZ signifies Azerbaijan's appeal not just as a consumer market, but as a manufacturing-export hub.

A substantial portion of the panels manufactured in Azerbaijan are expected to be exported globally, establishing the country as a credible green tech producer in the region.

“Considering the favorable investment environment created in Azerbaijan and the strategic relations between Azerbaijan and China, our company decided to invest here,” said Xie Yi.

This project underscores how China’s outbound FDI strategy intersects with Azerbaijan’s ambition to become a post-oil diversified economy.

Infrastructure and connectivity: From transit state to Eurasian hub

In logistics and transportation, Azerbaijan has emerged as a linchpin of the Middle Corridor - a route connecting China to Europe via Central Asia and the Caucasus, avoiding Russian and Iranian territory.

President Aliyev reported a 90% increase in cargo traffic through the Middle Corridor since 2022, thanks to strategic investments in the Alat Port, rail infrastructure, and customs efficiency.

“We are actively developing international transport corridors... The Middle Corridor represents a reliable and safe route connecting China, Central Asia with Europe through Azerbaijan,” President Aliyev stressed.

The China Communications Construction Company (CCCC), one of the world’s largest infrastructure firms, is now an active partner in Azerbaijan’s connectivity ambitions. During his meeting with Chairman Song Hailiang, President Aliyev discussed the company’s potential participation in Phase II of the Baku International Sea Port and other transport and urban development projects, including metro construction and port logistics.

CCCC's presence signals a long-term commitment to Azerbaijan's role as a Eurasian logistics hub, with additional interests in environmental projects such as lake rehabilitation on the Absheron Peninsula.

Digital governance and cybersecurity: A new frontier

Beyond infrastructure and energy, the digital realm is becoming a new pillar in the bilateral relationship. President Aliyev’s meeting with Zhu Peng, CEO of China Electronics Technology Group Corporation (CETC), explored collaboration in e-governance, national network security, and digital economy development.

CETC is a state-owned tech conglomerate and a key player in China's national cybersecurity architecture. Their expertise can help Azerbaijan modernize its governance systems, introduce AI-driven public administration, and enhance cyber defense - vital for a country at the crossroads of geopolitical fault lines.

Strategic implications: More than bilateral ties

The Azerbaijan-China partnership is evolving beyond mere transactional cooperation. It is being redefined as a strategic convergence of complementary assets:

China brings capital, technology, and scale.
Azerbaijan offers energy resources, location, and stability.

This alignment benefits both nations within a wider Eurasian integration framework that sidesteps traditional geopolitical bottlenecks.

SCO and multilateralism

Azerbaijan’s growing role in China’s multilateral frameworks, such as the Shanghai Cooperation Organization (SCO), adds another layer of strategic alignment. President Aliyev’s support for initiatives like the Global Development Initiative and Global Security Initiative showcases Azerbaijan’s diplomatic balancing - aligning with China while maintaining ties with the West.

“We also welcome the Global Governance Initiative... aimed at improving international relations based on sovereign equality and respect for the UN Charter,” President Aliyev affirmed.

As energy transitions, digital economies, and transport corridors redefine global power centers, Azerbaijan and China are forming a partnership that is strategic, multi-sectoral, and future-oriented.

President Ilham Aliyev’s engagements in Tianjin signal not just goodwill, but a calculated vision for Azerbaijan’s transformation - powered by green energy, digitization, and infrastructural connectivity, with China as a key partner.

The stage is now set for Azerbaijan to move from regional relevance to global resonance, leveraging its unique position at the heart of the Silk Road's 21st-century revival.