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China and Georgia Start Free-Trade Talks

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The duel between the West and Russia for the Caucasus might just be becoming a truel. In its continued fervor to embrace China and attract Chinese hunger for global investment and exports, Georgia has launched talks on free trade with Beijing.

“Our main goal is to make the most prudent use of our strategic location,” said Georgian Prime Minister Irakli Gharibashvili on September 10 at the World Economic Forum in the Chinese city of Dalian, where the Georgian leader met his Chinese counterpart, Li Kepiang.

Dalian is on the ancient East-West trade route known as the Silk Road, which China is looking to bring back to life by investing in transportation and energy infrastructure along the way.

“Georgia is Europe’s natural gateway to Asia, as it is Europe’s eastern most [syc] point both by land and sea,” Gharibashvili elaborated in a September 10 op-ed in the English-language China Daily, seen as a Beijing mouthpiece.

In his commentary Gharibashvili went through the selling points for Georgia as a critical hub in the Chinese government’s transnational project for integrating Chinese and Eurasian trade and investment.

With its economy still struggling for a breather, Tbilisi hopes that Georgia’s investment-friendly tax policy and free-trade agreement with the European Union will encourage more Chinese business to provide a much-needed financial boost. Gharibashvili’s office said that Chinese officials will visit Tbilisi in mid-October for a Silk Road conference.

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