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Georgia's Perspective in the Context of Developing Economic Relations between China and the European Union

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Loid Karchava

Doctor of Business Administration, Associate Professor, Caucasus International University

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Shota Veshapidze

Doctor of Economic Sciences, Associate Professor, Ivane Javakhishvili Tbilisi State University

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Salome Tsikelashvili

PhD student at Ivane Javakhishvili Tbilisi State University

Abstract

This article explores the various dimensions of Georgia's relationship with China and the European Union, analyzes the country's role as a mediator in facilitating economic cooperation, and discusses the regional geopolitical implications of its position. Georgia's active participation in the "One Belt, One Road" initiative. Its strategic use of trade agreements and efforts to harmonize its policies with EU standards are central to its efforts to seize this unique economic moment. The interaction between these global forces is likely to determine Georgia's future economic and political trajectory, as well as impact regional stability and development in the Caucasus and Central Asia as a whole.

The development of economic ties between China and the European Union presents opportunities for Georgia to succeed, which is related to global projects initiated by China. Of these, the most important is the Belt and Road Initiative (BRI), a global project initiated by China. An initiative aimed at developing infrastructure and strengthening economic cooperation between Asia, Europe and Africa. Georgia, as a country located at the crossroads of Europe and Asia, is an important participant in the "One Belt, One Road" initiative. The country has a strategic location, which is considered an intermediate link between China and the European Union. Georgia's role in the "One Belt, One Road" initiative is determined by its geostrategic location, transport and infrastructure, and influence on the international economy.

Georgia is located in a central region, connected to both Asia and Europe. Its geographical location gives it a unique position as a transit hub, which, within the framework of the initiative, will strengthen ties between China and the European Union. The railways and roads that pass through Georgia play an important role for China in economic ties with neighboring countries such as Turkey and Iran. Important infrastructure projects located between Georgia and China, such as the so-called "New Silk Road", which aims to renew land and sea routes, promote trade turnover and improve routes. China is actively investing in Georgia in the transport and logistics sector, which is increasing the capabilities of Georgian infrastructure. "One Belt, One Road" is creating new economic opportunities in Georgia that are contributing to the growth of the Georgian economy. By participating in such projects, Georgia is trying to maximize the benefits of investments and cooperation. Georgia's participation in the "One Belt, One Road" initiative increases its international role and its function as a connecting link between China and Europe. Carrying out this role contributes to strengthening Georgia's positions in relations with both Western and Eastern partners.

Georgia's role in this context is important. The European Union is a priority partner for Georgia, especially as Georgia seeks to strengthen political and economic cooperation. The European Union supports Georgia's economic development, democratic reforms and ensuring regional stability. Georgia's active participation in the "One Belt, One Road" initiative strengthens it as an actor in multilateral cooperation. This allows Georgia not only to connect China and the European Union, but also to successfully use both economic and diplomatic channels. Chinese investments in Georgia, often accompanied by the involvement of the European side, create a positive situation in the areas of transit infrastructure, energy, trade relations, and other sectors.

Keywords: Georgia; China-EU economic relations; “One Belt, One Road Initiative” (BRI); Strategic location; Transport and infrastructure; Impact on the economy; International role.

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