ARMENIAN, CHINESE PRESIDENTS AGREE TO ENHANCE BILATERAL BUSINESS TIES
Lilit Gevorgyan
World Markets Research Centre
Global Insight
May 5, 2010
Armenian president Serzh Sargsyan’s press service stated today that he
has held a meeting with his Chinese counterpart Hu Jintao during his
visit to China where Sargsyan has already taken part in the opening
of the Shanghai Expo-2010. The Chinese president has stressed that
since Armenia’s independence in 1991 the two countries have become
trustworthy friends and sincere partners. During the high-level meeting
the two leaders stated their determination to increase bilateral
commercial ties. In a bid to promote Armenian-Chinese business ties,
Sargsyan also met with Lin Rui Chi, the chief executive officer
of one of the world’s leading Chinese telecoms companies, Huawei,
and Liron Shi, head of ZTE. Sargsyan expressed his hope that both
companies would enter the Armenian market in the near future.
Significance:Armenia and China have traditionally maintained friendly
relations that have been consistently growing. China sees Armenia as
part of the larger market made up by the former Soviet republics.
Chinese business presence has been increasingly growing in almost
all the Commonwealth of Independent States (CIS) countries, including
Armenia. Armenian businesses have been successfully engaged in joint
projects with Chinese companies that involve agriculture, defence,
science and technology and most notably the chemical industry. The
Armenian-Chinese Shanxi-Nairit joint venture in China’s Shanxi Province
has been successful for some time now, setting an example for both
Armenian and Chinese businessmen to set up similar ventures.
Armenia desperately needs foreign investors who would be willing
to ignore investment impediments such as the ongoing blockade of
the country’s borders by Azerbaijan and Turkey, the limits of the
Armenian market and the oligarchic nature of the economy. Sargsyan
hopes that Chinese companies will be willing to continue working with
Armenia regardless of the business environment problems. Furthermore,
the Armenian leadership is trying to encourage Chinese involvement
by providing high-level guarantees for improved business operation
conditions. Given the commitment on both sides to improve political
and business ties, Armenian-Chinese commerce is set to see a further
boost in the near future.