China's Role in the South Caucasus Region

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The digest covers China’s political, diplomatic, economic, and other activities in the South Caucasus region and relations between China and the South Caucasus countries, The Caspian Post reports citing foreign media.

Armenia-China

Armenia and China commit to enhancing high-level interactions between the Armed Forces

• On September 12, during his visit to China, Armenia’s Minister of Defense Suren Papikyan met with the Minister of National Defence of China Dong Jun.

According to the Ministry of Defence of Armenia, they underscored “the elevated level of relations between the two countries across various domains, including defense”. Reportedly, the parties noted substantial progress in military cooperation in recent years, including the exploration of new areas.

They also expressed a commitment to further advancing Armenia-China cooperation, including enhancing high-level interactions between the two countries’ Armed Forces.

• On September 13, Papikyan participated in the opening ceremony and plenary session of the 11th Xiangshan Forum held in Beijing. The Forum’s theme was “Promoting Peace for a Shared Future.” Reportedly, the program included four plenary sessions focusing on “security cooperation in the Asia-Pacific region, trends in the international order, the development of the Global South, and world peaceful governance mechanisms”.
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• “We can cooperate on international peacekeeping, humanitarian de-mining, military education, military reforms, and technology,” RFE/RL reported last year’s quote from the Chinese military attaché in Yerevan, An Qiang.

RFE/RL wrote that Chinese-Armenian military ties appeared to have deepened under Armenia’s previous leadership and noted that the countries had signed an agreement on “military and military-technical cooperation” in 2012. “Papikian’s predecessors visited China in 2011 and 2017. Still, Yerevan has never officially reported or confirmed any acquisitions of Chinese weapons,” the report said.

China and Armenia congratulate each other on their national days

• Armenia’s Prime Minister Nikol Pashinyan sent congratulatory messages to the Chairman of the CCP Xi Jinping and Premier Li Qiang on the occasion of the 75th anniversary of the founding of the People’s Republic of China, Armenpress reported on October 1.

“I am ready to make joint efforts with you to further develop the relations between Armenia and China and activate the interaction for the benefit of our peoples,” He wrote to Xi.

• On September 20, Assistant Foreign Minister Liu Bin attended the Independence Day reception of Armenia held by the Embassy of Armenia in China.

The Chinese Foreign Ministry reported that China was ready to share development opportunities with Armenia and other developing countries “to help with each other’s development and revitalization”.

Armenian Prime Minister’s wife visits China, discusses cooperation

• During her visit to Qingdao, China, the Armenian Prime Minister’s wife and the Executive Director of the My Step Charitable Foundation Anna Hakobyan met with a State Councilor and President of the All-China Women’s Federation Shen Yiqin. The meeting took place ahead of the “Shanghai Cooperation Organization” Women’s Forum scheduled for September 11.

“I understand that the All-China Women’s Federation shares a similar mission of empowering women. I propose considering potential cooperation between the My Step Foundation and the All-China Women’s Federation, including the possibility of organizing reciprocal familiarization visits for women in both directions,” Hakobyan said.

• On September 11, Hakobyan visited the World Sinology Center and met with the research center’s Director Professor Xu Baofeng, Armenpress reported.

“We can cooperate with Armenian universities, and open a sinology center in Armenia so that more people in your country will be able to study China, the Chinese language, and Chinese culture. We are expressing our desire to enhance partnership,” Xu said.

Hakobyan expressed the Armenian side’s interest in strengthening the partnership. She said that the Armenian education ministry is focused on the issue of opening a sinology center at one of the universities, and expressed hope that the Chinese side would consider opening a Center of Armenian Studies.

Other statements

The 75th anniversary of the founding of China was celebrated at the Embassy of China in Armenia, Armenpress reported on September 25. At the event, China’s Acting Chargé d’Affaires in Armenia Chen Ming said that since the onset of the pandemic, a new level of high-level interaction between Armenia and China had emerged. In his speech, he noted that Yerevan Municipality recently acquired a batch of Chinese buses, and Chinese brands such as BYD, Haier, and Jetour had opened specialized stores in Armenia.

Azerbaijan-China

Azerbaijan-China military cooperation

• On September 14, Azerbaijan’s Defense Ministry reported that a delegation led by Azerbaijan’s Deputy Minister of Defense Agil Gurbanov visited China to participate in the 11th Beijing Xiangshan Forum.

Gurbanov met with the Minister of National Defense of China Dong Jun. Gurbanov also met with the Head of the Central Military Council’s Department of Cooperation on Weapons, Military Equipment and Technology and heads of companies included in the State Defense Industrial Complex. They discussed the current situation and prospects of military-technical cooperation between the two countries.

• It is noteworthy that Azerbaijan had officially added JF-17C fighter jets, co-produced by Pakistan Aeronautical Complex (PAC) and China’s Chengdu Aircraft Corporation (CAC), to its military arsenal – Turkey Today reported on September 25.

Azerbaijan discusses enhancing cooperation with China in the road, railway, and transport fields

• During his visit to China, Azerbaijani Minister of Digital Development and Transport Rashad Nabiyev met with China’s Minister of Transport Li Xiaopeng, Xalqqazeti reported on September 25.

They discussed the current state of relations between the two countries in the field of transport and prospects for further development and cooperation within the Middle Corridor. They also exchanged views on advancing the regulatory and legal framework between the two countries and enhancing cooperation with the Chinese side in the fields of road, railway, public and air transport.

• According to Nabiyev, from January to August 2024, the volume of rail transit traffic between Azerbaijan and China had surged by an impressive 275% compared to the same period last year.
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• Azerbaijani President Ilham Aliyev sent a congratulatory letter to the CCP Chairman Xi Jinping on the occasion of the 75th anniversary of the founding of China, Azernews reported on September 28.

“The current level of our political ties and active dialogue provides ample ground for broadening the scope of our mutually beneficial engagement in the areas of economy, trade, transportation and logistics, telecommunications, humanitarian field, and other sectors. I wish to highlight our productive collaboration within the Belt and Road Initiative and the Middle Corridor projects,” Aliyev noted in his letter.

Georgia-China

First Deputy Prime Minister of Georgia visits China

• First Deputy Prime Minister, Minister of Economy and Sustainable Development Levan Davitashvili together with Georgia’s Deputy Ministers visited On September 12, he met with the Vice Premier of China Ding Xuexiang.

“Strategic cooperation with China is very important for Georgia… in order to maintain this relationship at a high level, strong support from both countries is of utmost importance, including in terms of cooperation in strategically important projects,” Davitashvili said,noting the development of the Anaklia Deep Sea Port.

According to Davitashvili, the Free Trade Agreement signed between Georgia and China had significantly contributed to the growth of trade turnover, including exports and investment flows between the two countries as well as to the deepening of cooperation in such sectors as telecommunications, financial services, tourism and other strategically important directions.

“In 2023, over 98 million USD were invested from China, which is by 125% higher figure than of the previous year,” he said adding that Georgia welcomed Chinese investors “to take advantage of the country’s geographical location and liberal trade regimes” to grow their businesses, including in such sectors as construction, banking and finance, hospitality, real estate, manufacturing and energy.

• Davitashvili also paid a visit to Huawei. “Huawei’s expertise in developing advanced data centers and optimizing AI infrastructure perfectly aligns with Georgia’s vision to become a regional hub for digital transformation. Moreover, Huawei’s commitment to fostering AI talent development, promoting STEAM education, and supporting research and development makes it an ideal collaborator for expanding Georgia’s ICT education and innovation initiatives. We would like to explore more about potential collaborations on data centers, education initiatives, AI-driven R&D, and infrastructure development to accelerate our shared goals of economic growth and technological advancement”, he noted.

The First Deputy Prime Minister also noted that Huawei’s existing presence in Georgia had strengthened its role “as a strategic partner, as the company is already familiar with the local market dynamics and has a vested interest in the region’s growth”.

“Our goal is to create a vibrant and innovative environment in Georgia, and we put a lot of effort into establishing a robust startup ecosystem. Enhancing STEAM and ICT education is one of the major focus for us, and we are eager to explore potential partnerships with Huawei with its proven ability to drive large-scale innovation projects across various industries,” Davitashvili told Huawei representatives.

• As part of the visit, the Memorandum of Understanding on Promotion of Transport Corridors for China-Europe Railway Express, Trans-Caspian International Transport Route (Middle Corridor) was signed by Davitashvili and the Vice Chairman of the Commission Zhao Chenxin.

Reportedly, the Memorandum “envisages the deepening of cooperation between Georgia and China in order to ensure stronger efforts and effective functioning of the Middle Corridor. The Memorandum states that the parties will work together to attract additional cargo to the Middle Corridor by optimizing routes, developing infrastructure, and improving transport services, as well as by strengthening cooperation on customs, transport security, and digitization. The signing of the Memorandum will contribute to the growth of cargo flows through the Middle Corridor from China to Europe and vice versa, as well as to the strengthening of trade and economic relations between the two countries”.

During the discussion attention was focused on projects such as the modernization of the Baku-Tbilisi-Kars railway, and the Anaklia Deep Seaport project.

• Davitashvili also met with the Governor of the People’s Bank of China Pan Gongsheng. Reportedly, the two sides agreed that cooperation and experience sharing between the National Bank of Georgia and the People’s Bank of China should be strengthened in key areas, including the implementation of monetary policy and prudent supervision.

According to Levan Davitashvili, the National Bank of Georgia is currently working on the modernization of the payment infrastructure in Georgia, which included the development of the Instant Payment System (IPS) to make it faster and more efficient. According to him, bilateral and regional cooperation on payment services was important for the development of a secure, efficient, accessible, and compatible international payment network.

The two sides also discussed the prospects of strengthening the cooperation of the National Bank of Georgia with countries of the region in the direction of development of financial technologies. They also discussed the emergence of alternative means of financing, including opportunities to invest in yuan-denominated securities and access to government bonds for the Georgian financial sector and Georgian economic agents.

It is also noteworthy that on September 25, Acting President of the National Bank Natia Turnava met with the Chinese Ambassador to Georgia, with attention being “focused on the activation of future cooperation in terms of development of payment systems and financial services between the countries”.

• In China, Davitashvili also met with the leaders of China Huadian Corporation, producing electricity in China. At the meeting, they talked about large energy projects, including hydro, wind, and solar power plants, which are planned to be implemented in Georgia, and the possibility of inviting a Chinese corporation to join this process.

Georgia’s Ministry of Internal Affairs Cooperation with China

On September 25, Georgia’s Deputy Minister of Internal Affairs Aleksandre Darakhvelidze hosted a delegation from China’s Guizhou Province headed by the Deputy Governor and the head of the Public Security Bureau of Guizhou Province Jia Lijun who was paying an official visit to Georgia.

Reportedly, they reviewed the ongoing cooperation between Georgia’s Ministry of Internal Affairs and the law enforcement agencies of China. Ministry of Internal Affairs of Georgia wrote that the discussions also extended to future collaborative efforts, “focusing on the exchange of experiences and best practices”.

Darakhvelidze noted the Ministry’s commitment to enhancing and strengthening bilateral cooperation. He provided the delegation with comprehensive updates on the Ministry’s activities and current and ongoing reforms that had been implemented.

Jia Lijun “shared his optimism for further intensifying and expanding the existing bilateral relations”.

Jia Lijun also visited Imereti region and met with the State Representative in Imereti Levan Zalkaliani. They reportedly talked about mutual cooperation and strengthening of strategic partnership between the two countries.

Chinese Ambassador’s comments on operating Anaklia port, constructing Vaziani airport

“If Chinese companies participate in the process of building and operating the port, it will undoubtedly increase Georgia’s position and contribute to the attractiveness of Georgia in terms of international investments,” the Chinese Ambassador to Georgia Zhou Qian said in a September 30 interview with BPN.

Regarding Vaziani he said the following: “After Georgia announced the construction project of a new airport in Vaziani, many Chinese companies expressed their interest. It is understood that the project is still in the early stages of feasibility studies, but we will continue to closely monitor and support it”.

The Ambassador also touched upon Chinese cars in Georgia, and noted that currently Chinese companies were interested in second-hand car trade in Georgia, not in production.

Imedi journalist participates in China’s program for journalists, reports positively on China

On September 21, the pro-government Imedi TV channel reported that their journalist Nata Makhviladze had participated in China’s program for journalists.

“…This is a state that tries its best to have its achievements correctly perceived in modern reality, and that is why every year, at the initiative of the Chinese Ministry of Foreign Affairs, journalists from all over the world take a four-month course and get to know what benefits China has for the modern world. I was a participant in this program for a while,” Makhviladze said.

Makhviladze reported positively about China, its technological development, the library in Beijing, Tai Chi, and the Great Wall of China. “A lot of projects are being carried out in coordination with different countries for joint-friendly and harmonious development,” the Imedi representative said in her report.

Transportation in the Middle Corridor increases

On October 2, Bm.ge reported that from January to August 2024, the Middle Corridor had transported 6964 TEU containers from or to China via Georgia, 728.1% more than the same period in 2023.

According to the Economy Ministry, it was also noted that until 2023 the transportation of containers on the Middle Corridor was mainly carried out in transit mode through Georgia (more than 90%), however, the number of containers imported from China increased this year, and the share of import and transit was approximately 50%-50%.

Other activities

• On September 18, ISFED published a monitoring report on an unofficial political campaign on Facebook. In the June 1 – July 31 report the organization noted the following: “An anti-Western campaign, including a discrediting campaign of Georgia’s strategic partners, was actively taking place on anonymous pages operating against the opposition. At the same time, messages supporting China were spread in some of the posts, emphasizing the economic relations between Georgia and China”.
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• The delegation from China’s Xi’an Technical University paid an official visit to Marneuli municipality. Reportedly, the Chinese delegation was hosted by the mayor of Marneuli municipality Kenan Omarov together with a member of the Parliament of Georgia Zaur Dargali, the Chairman of the Marneuli municipality council Amiran Giorgadze and the Deputies Temur Shubitidze and Zurab Fangani.
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• A joint Georgia-China forum was held in the Marneuli Public Library under the name: “Education, Culture, Business”, Interpressnews reported on September 10.

At the forum, the Deputy Mayor of Marneuli Municipality Temur Shubitidze spoke about the importance of the “Silk Road Cultural Hub” and its development potential. From the Chinese side, professors of the Xi’an University of Technology spoke about international initiatives of the university, which reportedly envisage cooperation in the field of education within the framework of the Belt and Road Initiative.