China’s deepening footprint in the South Caucasus

The South Caucasus, with Azerbaijan at its heart, serves as a crucial energy corridor and a buffer zone between Russia and the Middle East.

So when Azerbaijan and China signed a Joint Declaration on establishing a strategic partnership at this year’s Shanghai Cooperation Organization summit held in Astana, Kazakhstan, the deal underscored China’s geo-economic approach to the region.

The Joint Declaration was a long, multifaceted document. Economic articles focused on prospects for cooperation in key sectors, namely green energy, oil and gas production, transport infrastructure and digitization. The declaration also emphasized Azerbaijan’s role in the Belt and Road Initiative, China’s $1 trillion global infrastructure-building program.

In particular, both parties committed to enhancing connectivity through the Middle Corridor, also known as the Trans-Caspian International Trade Route (TITR).

The declaration’s content aligns with Azerbaijan’s longstanding policy of multi-vector diplomacy, through which it seeks to balance relationships with various global powers. Increased Chinese investment and economic cooperation offer potential economic benefits and yet another foreign-policy “vector” to mitigate reliance on Russia and the West.

The emphasis on cooperation for strategic international trade corridors and supply chains suggests that China has come to view Azerbaijan, at least potentially, as a key player in its broader Eurasian economic strategy. For Azerbaijan, the partnership is a diplomatic success that boosts its global profile as a middle power.

Azerbaijan in China’s strategy in the region

China’s push into the South Caucasus has been ongoing for a few years. Nevertheless, the Joint Declaration with Azerbaijan