Nearly 20 Years Since The Bilateral Economic And Trade Relations

China is one of the first countries giving the diplomatic recognition to Azerbaijanand they subscribed the communiqué in Baku on April2nd,1992that China andAzerbaijan established diplomatic relationship. The direct economic and trade relationshave been established between them since then and after20years China is now asignificant trade partner of Azerbaijan. China with huge market capacity is currently oneof the biggest business centers in the world and the cooperation between China andAzerbaijan is developing with the flourish of both sides. Made in China is a commonword in the market of Azerbaijan and permeating into the daily life of its citizens. Theireconomic and trade relations are always developing steadily. It means that the exportfrom China to Azerbaijan is increasing, the scale is enlarging, the levels of goods forexport and cooperation are improving, their contacts are becoming more intimate and themutual confidence is strengthening. As a result, China’s influence on Azerbaijan isenlarging, which plays a positive and strong role in the mutual development of theirrelationship.This kind of relationship could go back to bi-millennium ago when the Silk Roadconnected Chang An of China and the Europe by Azerbaijan tightly. The greatimportance of the Silk Road in developing China and Azerbaijan’s friendship and thecommunication of East and West cultures cannot be denied or forgotten. In the1950s, anAzerbaijan expert from the Soviet Union assisted China in the progress of oil-industry,such as the Kelamayi oilfield. All these are helping strengthen and promote their mutualrelations.While Caspian Sea is recognized as one of the biggest energy sources in speeding upthe world economic development, it also attracts the attention of energy consumptionstates such as America and Russia for its rich energy and particular geostrategic position.The proved oil reserves of China are limited, but the need of it is increasing with theeconomic development, which leads to a condition that the oil reserves and security aredamaged greatly. Thus, Caspian Sea is the second important oil resource of Chinafollowing the Middle East. Considering all these factors, China has to take steps to ensurethe diversification of oil resources to guarantee the energy security. On the contrary ofChina’s situation, Azerbaijan owns a large amount of oil reserves while its domestic needis small and it exports most of the oil. Therefore, China can work with Azerbaijan on theenergy in order to guarantee its energy security and promote the Western Exploitation.Besides, it counts a lot to keep the stability of regions and even the whole world.On one side, China is the12st largest trade partner of Azerbaijan in2011and themain one to most countries as the largest exporting country. On the other side, Azerbaijanowns plentiful amount of oil and gas energy. It’s really confusing why they don’t have agood cooperation in trade or make their respective advantages complementary to eachother. However, with the development of their cooperation in energy, what is the futureand how can they gain a bright future for themselves?This article aims at drawing a picture of the current situation of China andAzerbaijan’s economy and trade and analyzing the future of their cooperation. What’smore, it stresses the significance of this kind of cooperation to their economicdevelopment and their political stability. The author is trying to analyze the problemsexisting in the economy and trade and pointing out some solutions meeting with theirinterests with the relevant theories from both macroscopic and microscopic views. The author believes in the bright future of China and Azerbaijan’s cooperation in oil, gas,agriculture, tourism, investment, trade and so on. So Azerbaijan is supposed to join handswith China basing on their friendly political relation.