Georgian tea with Chinese twist: Why are entrepreneurs from China so interested in Georgia?
Chinese companies in Georgia
Since the establishment of a strategic partnership between Georgia and China, the registration of Chinese enterprises in the country has surged by 96.6%.
In 2024 alone, Georgia’s state register recorded 291 new Chinese companies—the highest figure in three decades since diplomatic ties were established.
According to the National Statistics Office, this trend is expected to grow even further in the long run.
Georgian Sinologist and political analyst Shalva Chikhladze attributes this to several factors.
“The strategic partnership signals to Chinese citizens that Georgia is a desirable partner with a relatively stable political and economic environment. This agreement acts as a green light for them. However, I believe the visa-free regime between Georgia and China has played an even bigger role,” says Chikhladze.
The expert explains that a strategic partnership is a more formal type of agreement, mainly outlining general provisions and framed as a communiqué. The signing of this agreement did not impose any economic, financial, monetary, fiscal, or political obligations on either the Georgian or Chinese side. Decisions made by China’s ruling political party remain strictly advisory.
On 11 September 2023, Georgia introduced a visa-free regime for Chinese citizens, leading to a surge in Chinese tourist arrivals.
“The strategic partnership announced by China’s leader Xi Jinping serves as a signal to various agencies in both countries that relations are moving to a new level, which ultimately facilitated the visa-free regime,” says the Sinologist.
According to Georgia’s National Tourism Administration, in the first three quarters of 2024 alone, the number of Chinese tourists increased by 101.4% compared to the previous year. The steady rise in Chinese visitors has been observed before, particularly in 2018 and 2019, coinciding with major geopolitical shifts, such as free trade agreements and strategic partnerships.
Sulkhan Mchedlishvili, a tour guide fluent in Chinese, confirms that the number of Chinese tourists has significantly increased since the introduction of the visa-free regime:
“There’s been a rise in both group tours and individual travelers, including couples. As a guide, I can clearly see the difference. Large groups mainly come for the so-called ‘Caucasus Route,’ which includes visits to Georgia, Azerbaijan, and Armenia. Some hotels have essentially been revived thanks to Chinese tour groups,” Mchedlishvili explains.
Shalva Chikhladze also attributes the growing interest of Chinese entrepreneurs in Georgia to the lifting of COVID-related restrictions and the rising demand for land and rail transport following the Russia-Ukraine war.
Currently, around ten major Chinese construction companies are operating in Georgia, primarily working on the Rikoti Pass road project. These companies, in turn, rely on Chinese subcontractors.
“Chinese people are traders by nature, and one of their key strengths is adaptability. They have a strong reputation in the economic sector. If they see market demand for something, they quickly adjust to meet it.
Large [Chinese] contractors have been operating in Georgia for 7–8 years, and smaller Chinese businesses have followed, aligning with their needs and importing specific products required for large-scale projects,” says Chikhladze.
However, he notes that the influx of Chinese companies has not significantly impacted investment figures. A deeper analysis is needed to determine the true purpose behind the establishment of these businesses:
“If we look at Georgia’s investment statistics for 2023, Chinese investments amounted to $98 million, which doesn’t even place China among the top five foreign investors.”
In any case, Chikhladze believes that even with a substantial increase in investment returns, over-reliance on a single country for exports or investments is risky:
Diversification remains the best economic and security strategy humanity has devised so far.
Chinese-Georgian tea
“One hundred and thirty years ago, a Chinese man named Liu Jui-chou came to Georgia and started growing Chinese tea. That was the first tea plantation in Georgia.
When I arrived here myself, I wasn’t even sure if tea could grow in such high temperatures—41 degrees Celsius,” says Chinese businessman Guo Chihong.
In 2024, Guo Chihong completed the construction of a modern tea factory in the western Georgian city of Khoni. His company, Hantangyuan International Holding Group, leased 78 hectares of land under the state program “Georgian Tea,” with 34 hectares already planted with tea.
Last spring, the company harvested its first crop, and this year, it is already exporting 5 tons of white tea to China.
Tea harvesting in Georgia takes place from April to June, with local residents—mostly aged 50 to 60—working on the plantations.
This is a source of income for their families and an interesting job, as many of them remember the tea plantations thriving here in their childhood.
Chinese businessman Guo Chihong believes that several factors make Georgian tea unique:
“Georgia has preserved old tea varieties with deep, strong roots that extract more nutrients from the soil. The tea is grown without genetically modified seeds, pesticides, or artificial fertilizers. That’s why it has such a rich taste and aroma.
It’s heartbreaking to see abandoned tea plantations. I believe tea has just as much potential in Georgia as winemaking.”
Locals call him Viktor, though he admits that communication remains a challenge:
“Georgians are friendly people, but their culture and language are still foreign to me. There are cultural differences—for example, employees take holidays off, and there are a lot of holidays.”
Guo Chihong notes that a decade ago, few in China knew about Georgia, but interest has surged thanks to additional flight connections and the visa-free regime:
“People are traveling back and forth. Now, many Chinese entrepreneurs will come here—they want to do business.”
“I tell everyone it’s great here”
Hua Yu, the founder and shareholder of several companies in Georgia, sees growing opportunities for Chinese entrepreneurs in the country.
In early 2025, a new LLC, “Georgian Alliances for Promoting China’s Peaceful Reunification,” was established. Hua Yu believes that the deepening ties between Georgia and China have sparked significant interest among Chinese businesspeople:
“I have a very positive view of the partnership between our two countries. I have always tried to encourage my Chinese colleagues to take an interest in Georgia, and now it’s much easier. This is a great opportunity, and we feel more confident. The Georgian government is encouraging Chinese entrepreneurs to relocate here. I tell everyone that it’s great here.”
However, he notes that beyond improved transport links, China’s foreign policy has also played a role in increasing interest in Georgia:
“Of course, the visa-free regime is a big advantage. But there are many issues between China and the European Union, so many Chinese entrepreneurs are considering relocating their businesses elsewhere, including Georgia. I believe that in the near future, we will see more Chinese businesspeople and companies coming here. It’s very easy to register a business.”
Hua Yu emphasizes that Chinese companies are unlikely to relocate heavy industries to Georgia, as they could have a negative environmental impact. Instead, they will focus on small and medium-sized businesses, which could benefit Georgia’s economy.
According to him, Chinese business interests span nearly all sectors of small and medium enterprises:
“Many of my colleagues are interested in mineral water and renewable energy, including solar and wind power. Telecommunications is also an attractive sector. We have extensive experience in this field and believe we can make a significant contribution to Georgia’s energy sector.”
Sinologist Shalva Chikhladze compares Georgia’s cooperation with China to fire:
It’s useful if you stay close enough—but if you step into it, you’ll burn. That’s why a reasonable distance is necessary.
He argues that the Georgian government’s approach to China is largely populist—despite the rhetoric of strategic cooperation, no concrete economic initiatives have been taken, and the long-term strategy remains unclear.
Background
Chinese companies first began appearing in Georgia in 1996.
The first record-breaking wave of Chinese business registrations occurred in 2007 under the government of the United National Movement led by Mikheil Saakashvili.
“During the previous administration, many Chinese entrepreneurs opened small shops and businesses in Georgia. Over time, this type of business declined, and larger companies entered the market,” recalls Sinologist Shalva Chikhladze.
“In 2010, when China became the world’s second-largest economy, Chinese goods were considered cheap and of decent quality. That was during Hu Jintao’s presidency, which was marked by a more open and corporate approach—encouraging Chinese entrepreneurs to expand to Georgia.
However, rising production costs in China and increased competition in Georgia affected their businesses. They lost their niche in the cheap goods market, making business in Georgia less profitable for them,” Chikhladze explains.
In 2017, Georgia became the first country in the region to sign a free trade agreement with China, which came into effect in January 2018.
In July 2023, China and Georgia announced the establishment of a strategic partnership, and two months later, Georgia unilaterally lifted its visa requirements for Chinese citizens.
This led to an unprecedented increase in Chinese visitors and a surge in business registrations across the country.
In May 2024, it was announced that a Chinese consortium would invest in the construction of Georgia’s deep-water port in Anaklia. The consortium includes China Communications Construction Company Limited (China) and China Harbour Investment (Singapore), with subcontractors China Road and Bridge Corporation and Qingdao Port International.
This article was prepared as part of the Sphere of Influence project.
