LOGISTICAL ASPECTS OF CHINA'S "ONE BELT ONE ROAD" INITIATIVE FOR AZERBAIJAN ECONOMY: CONTRIBUTION TO ECONOMIC GROWTH

ABSTRACT

The South Caucasian region started to capture Chinas attention in 2013 when the «One Belt One Road» Initiative was announced. Chinas interest to expand its economic impact in this region can be explained based on a few factors the regions growing demand for large investments, the economic crisis of neighboring countries caused by US and EU sanctions against Iran, Russia, and Turkey. It should be noted the growing geo-economic role of Azerbaijan in the implementation of the big logistical projects such as Baku-Tbilisi-Kars railway, Free Economic Zone within Alat International Sea Trade Port, international transport corridors "East-West" and "North-South". These projects have increased Azerbaijan's viability to become a logistical hub on the trade bridge between China and Europe. Today 96 percent of trade volume between China and Europe is carried out via sea routes. China is interested in using the remaining 4 % via land routes throughout the territories of countries that the Great Silk Way passed through in ancient times. This article will analyze the historical and economic aspects of trade relations between Azerbaijan and China, assess the carrying capacity of its transport potential, the possibility of attracting new investments and accessing their impact on its economy and GDP as a whole. Today, the Chinese economic system, and the world economy, is facing a very strong enemy-the coronavirus. A sharp drop in world oil prices on the background of coronavirus slowed global GDP and decreasing of demand for goods supplied by China to foreign markets. According to the Chinese government, the drop in exports for January-February 2020 in dollar terms was 17.2%. To strengthen ties with the world, first of all, all countries must be cured of this disease. And we believe that this difficult task will be solved and the "One Belt One Road" project will be realized.