During the second International Cooperation Summit Forum, Azerbaijan and China signed a multi field cooperation agreement worth a total of 821 million US dollars. As tire factories, trade representative offices, and cross-border logistics projects continue to advance, the footsteps of Chinese enterprises have extended from infrastructure construction to multiple fields such as manufacturing, trade, and logistics. In Sumgate Chemical Industrial Park, a modern production base with an annual output of 3.3 million tires is about to emerge, and Chinese capital and technology are writing a new chapter of cooperation on the shores of the Caspian Sea.

Large tire order falls, with Chinese enterprises holding 90% of the shares

Azerbaijan stated that the two sides recently signed a cooperation agreement worth a total of 821 million US dollars to jointly implement a series of new projects. Among them, the tire manufacturing project has become a key project, with a planned investment of 300 million US dollars to build a production base with an annual output of 3.3 million tires in Sumgate Chemical Industrial Park, which will be constructed by China Electric Power Engineering Co., Ltd. According to the plan, the equity structure of the project is 90% held by China Electric Power Engineering Co., Ltd. and 10% held by Azerbaijan Investment Company. In addition to meeting local demand, the products will also be exported to surrounding markets to enhance Azerbaijan's manufacturing and export capabilities. The absolute controlling position of Chinese enterprises in the project fully reflects China's comprehensive advantages in technology, management, and capital, and also lays a solid foundation for further deepening the market in the Caspian Sea region.

Trade and investment are heating up, and two-way cooperation is expanding

Azerbaijan plans to establish two new trade representative offices in China, one based on the memorandum signed during the President's visit to China, and the other to settle in Beijing. At that time, Azerbaijan's trade representative offices in China will increase to three to further expand the export markets for advantageous products such as alcoholic beverages and agricultural products. In terms of investment, Azerbaijan has invested a total of 1.7 billion US dollars in China, and Chinese companies have invested about 800 million US dollars in Azerbaijan. Bilateral capital cooperation continues to expand. The establishment of trade representative offices and the expansion of investment scale indicate that the economic and trade relations between the two countries are moving from single project cooperation to comprehensive industrial docking and market interconnection. Keywords: Central Asia, tire manufacturing, logistics

Logistics channels are formed, and regional interconnectivity is accelerated

In addition to manufacturing, logistics interconnection is also an important direction for cooperation between the two sides. Azerbaijan is expected to transport 43400 containers and approximately 900000 tons of goods from China throughout 2026. We plan to promote cross-border logistics routes through Azerbaijan in China from June to July 2026, attracting more Chinese provinces to use their local transportation networks for international trade. At the same time, the annual designed throughput capacity of Baku International Maritime Trade Port reaches 15 million tons of goods and 100000 containers, providing important support for the logistics channels between China and Central Asia. With the comprehensive cooperation in the three major fields of manufacturing, trade, and logistics, Azerbaijan's strategic value as a key node in the Trans Caspian International Transport Corridor is increasingly prominent, and the depth and breadth of participation of Chinese enterprises are also continuously expanding.Editor/Gao Xue