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Tourism, trade, and transit: Azerbaijan-China partnership gains new depth

17 April 2025 17:14 (UTC+04:00)
Tourism, trade, and transit: Azerbaijan-China partnership gains new depth
Akbar Novruz
Akbar Novruz
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Azerbaijan and China are on the verge of launching a new era in their bilateral relations, with an agreement on mutual visa-free travel expected to be signed during President Ilham Aliyev’s upcoming visit to China. The announcement, made during the 10th meeting of the Azerbaijan-China Intergovernmental Commission on Trade and Economic Cooperation held in Baku, reflects the deepening strategic partnership between the two countries.

The agreement, once finalized, will further accelerate the momentum in people-to-people contacts, tourism, and business cooperation. As highlighted by both sides, this step will not only facilitate travel but also foster stronger cultural understanding and support growing economic links. The upcoming visa-free regime marks a continuation of President Aliyev’s earlier commitment, expressed in an interview with CGTN, where he emphasized, “Chinese citizens do not need now even to apply for an electronic visa. Hopefully, Azerbaijani citizens will also soon have this opportunity. This will definitely increase people-to-people contact, and public diplomacy will play its role.”

Strategic diplomacy meets rising tourism

The diplomatic signal was reinforced during the credential presentation ceremony of Lu Mei, the newly appointed Chinese Ambassador to Azerbaijan, on April 17. President Ilham Aliyev underscored the strategic partnership between the two countries and reaffirmed Azerbaijan’s unwavering support for the One China policy. Ambassador Lu Mei, in turn, conveyed President Xi Jinping’s greetings and reiterated China’s firm support for Azerbaijan’s territorial integrity and sovereignty. She pledged to strengthen the already close ties through enhanced cooperation across all sectors.

Tourism has emerged as a particularly promising area in Azerbaijan-China relations. For example Urumqi is crucial for entrepreneurs and traders between the two countries, and there was significant interest in it during the period of Azerbaijani independence. Perhaps this city also serves as China's starting point in the Middle Corridor project, especially when viewed from the western part of the line, which also encompasses Azerbaijan's perspective.

Currently, the mutual interest in expanding tourism flows is backed by strong numbers. In 2024 alone, 44,798 Chinese tourists visited Azerbaijan, double the figure from the previous year. This upward trend continued into 2025, with over 2,600 Chinese visitors arriving in January, representing an 11% year-on-year increase. On the other side, 10,602 Azerbaijani citizens visited China in 2024, reflecting a 91% rise from 2023. Although business travel remains dominant, leisure travel from both countries is growing steadily.

Economic synergy and investment surge

Beyond tourism, China and Azerbaijan are strengthening their economic foundations. Trade turnover between the two nations reached $3.7 billion in 2024—a 21% increase—while the first three months of 2025 already saw trade hit $1.02 billion, marking a further 37% rise. China is now Azerbaijan’s largest trading partner in the South Caucasus.

Investments have also surged. Chinese investments in Azerbaijan have reached $942 million, primarily in industry, oil and gas, petrochemicals, green energy, high technology, and space sectors. Conversely, Azerbaijani investments in China, including those from the State Oil Fund, now total around $2.1 billion.

These developments underscore the strategic alignment of both countries. Azerbaijan has actively promoted its national brand at tourism exhibitions in China, increased the number of direct flights, and opened Trade Houses in Urumqi, Luzhou, and Shanghai. Meanwhile, Chinese companies are becoming increasingly active in Azerbaijan’s business environment, supported by ongoing cooperation between government institutions, private enterprises, and multilateral platforms.

Azerbaijan’s geographical position as a transit hub between East and West has significantly boosted its importance to China’s Belt and Road Initiative. President Aliyev emphasized this during his meeting with Ambassador Lu Mei, noting that Azerbaijan was among the first countries to support the initiative and has since built key infrastructure projects—some still underway—to support regional integration.

Azerbaijan plays a central role in the Middle Corridor, a key alternative route connecting China with Europe. The Baku-Tbilisi-Kars railway, the Alat Free Economic Zone, and the potential opening of the Zangazur Corridor further enhance the region's logistics and trade potential. Improved connectivity is expected to stimulate business tourism, cargo flow, and bilateral investments.

China’s recognition of Azerbaijan’s strategic value as a logistics hub, combined with strong diplomatic relations and shared development goals, sets the stage for deeper cooperation in trade, tourism, and transport. As Ambassador Lu Mei pointed out, this growing partnership is built on a foundation laid by National Leader Heydar Aliyev and continues to flourish under President Ilham Aliyev’s leadership.

The anticipated signing of a mutual visa-free travel agreement will mark a new milestone in Azerbaijan-China relations. With tourism, trade, and cultural ties on the rise, both nations are investing in a long-term partnership that balances economic opportunity with strategic diplomacy.

As direct flights increase, infrastructure develops, and people-to-people exchanges expand, Azerbaijan is positioning itself as a key destination for Chinese travelers—while also opening new paths for Azerbaijanis to explore China’s vast landscape and economic potential.

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