Harry Cummins
Updated on: October 11, 2024 3:36 pm GMT
As Georgia continues to expand its role in the global economy, recent agreements with China are expected to significantly enhance trade relations and boost tourism. Levan Davitashvili, the First Vice Prime Minister and Minister of Economy, unveiled key initiatives aimed at strengthening these ties during his recent diplomatic visit to Beijing.
Free Trade Agreements Foster Economic Growth
Davitashvili underscored the importance of free trade agreements in stimulating job creation and sustainable growth in Georgia. He noted that as trade barriers diminish, investments in pivotal sectors such as information and communications technology (ICT), finance, and tourism are increasing. These agreements not only improve market access for Georgian products but also enhance cooperation with vital international partners.
At the China International Fair for Trade in Services, Davitashvili emphasized the benefits of the 2017 free trade agreement with China. He highlighted the surge in trade and investment resulting from this agreement, particularly in telecommunications, tourism, and financial services. Moreover, he pointed out that successful partnerships with the European Union (EU), the European Free Trade Association (EFTA), Turkey, and Hong Kong further amplify Georgia’s access to a broader range of services and markets.
Georgia and China Sign Development Agreement for Middle Corridor
In a significant development, Georgia and China have signed an agreement to enhance the Middle Corridor—a vital trade route that connects Asia to Europe. The memorandum was signed by Davitashvili and Chao Chenxin, Chairman of the National Development and Reform Commission of China.
Davitashvili stated that this agreement paves the way for closer trade relations, aims to attract additional investments, and facilitates the export of Georgian products to China. He noted that strengthening this corridor will solidify Georgia’s position as a regional trade hub, benefiting from the growing logistics of the Baku-Tbilisi-Kars railway line, which is part of the route connecting China, Kazakhstan, Azerbaijan, and further into Europe.
Expanding Flight Connections with Chinese Airlines
Davitashvili’s meetings with executives from several major Chinese airlines signify a strategic push to expand flight connections between the two countries. During discussions with Hainan Airlines, Capital Airlines, and Sichuan Airlines, he highlighted Georgia’s growing popularity as a tourist destination, which has subsequently stimulated the civil aviation sector.
Currently, over 60 airlines operate more than 100 regular flights connecting Georgia to over 30 countries. Notably, China Southern Airlines offers daily flights on the Tbilisi-Ürümqi route, and Air China plans to introduce flights between Beijing and Tbilisi soon. This increase in direct flights, coupled with new visa-free travel agreements, has resulted in a dramatic rise in the number of Chinese tourists visiting Georgia—an increase of 555 percent in 2023 alone, with a further rise of 423 percent in just the first half of 2024.
Tourism Initiatives to Enhance Bilateral Cooperation
Davitashvili announced plans to organize large tourism events in key Chinese cities to promote Georgia as a premier travel destination. This initiative aims to capitalize on the growing number of Chinese visitors, facilitated by the newly established visa-free regime and increased flight options.
During his visit, Davitashvili also engaged in discussions with top Chinese businesses across various sectors, including energy, technology, and finance. His efforts are part of the Georgian government’s broader strategy to deepen economic ties with China and other significant international partners.
Conclusion
Georgia is working hard to improve its economy by making smart deals and teaming up with China. This could lead to more trade, more tourists visiting, and new jobs for people. These efforts will help Georgia become a key player in both local and worldwide markets, supporting steady growth and a stronger economy.
