Georgia's double game: European integration and Chinese investments
Georgia-China relations
Over the past year, Georgia has achieved candidate status for EU membership and signed a strategic partnership agreement with China. Experts fear that these two paths are incompatible.
Georgia-China relations
Georgia has decided to grant the Chinese consortium [CCCC] the right to construct the deep-water port of Anaklia on the Black Sea, a port of strategic importance to Georgia. Only this consortium participated in the government-announced tender.
“Currently, legal and commercial assessments are underway for the proposal submitted by the bidder, after which the winner will be announced,” a representative from the Ministry of Economy told JAMnews.
The China-Singapore Holding Company [CCCC] has been sanctioned by the US due to questionable activities related to its operations in the South China Sea. Additionally, the company is on the blacklist of the World Bank, Asian, and African Development Banks for engaging in corrupt practices. While the Georgian government sees the deal with this company as an “economic relief” for the country, Georgian President Salome Zurabishvili described this choice as a “stab” to American and European partners.
Shortly before the deal with the Chinese, the Georgian Parliament passed a controversial “foreign agents” law, seen by strategic partners as a shift in the country’s geopolitical course. Some experts suggest a linkage between handing over a key infrastructure asset to China and effectively abandoning the European integration process.
Relations between Georgia and China have intensified, especially since Georgia obtained candidate status for EU membership. Following the signing of a strategic partnership document, China introduced visa-free travel for Georgian citizens, and Georgian prime minister Irakli Kobakhidze highlighted a multifaceted deepening of relations between the two countries, with pro-Chinese messages increasing on government channels.
Moreover, Georgia received candidate status conditional on meeting 9 recommendations, including a new one to align its overall foreign and security policy with that of the European Union.
Experts speculate that this recommendation was added precisely due to the intensification of Georgian-Chinese relations, as the EU views China as a threat and has “doubts about Georgia’s sincerity in Euro-integration.”
Georgia-China relations
What danger do experts see in Georgia’s rapprochement with China?
Ivane Chkhikvadze, a researcher at the Open Society Georgia Foundation, believes that the rapid rapprochement between China and Georgia is incompatible with European integration, and Georgia will have to choose between these two integration processes.
According to Chkhikvadze, the above-mentioned EU recommendation is due to two reasons:
“First of all, it’s the strategic cooperation agreement signed by Georgia with China, which, according to the EU’s security concept, poses a threat to European integration. The second reason is that Georgia has resumed air traffic with Russia. These two factors have raised serious questions within the EU about how sincerely Georgia is interested in European integration.”
Chkhikvadze believes that by implementing large infrastructure projects (in Greece, Albania, and now in Georgia), China is trying to create a unified belt that will somewhat compete with the European Union. The Georgian government, on the other hand, thinks that transferring key infrastructure projects to China will help Georgia fulfill its historical transit function and bring it even closer to the EU.
But, according to Chkhikvadze, when it comes to European integration, “the main thing is to fulfill the 9 recommendations, and there is no need to look for other formats beyond this, no need to reinvent the wheel.“
Another problematic aspect is China’s lack of a clear position on the Russia-Ukraine war.
“This war has left no more gray areas in international relations. It’s impossible for a country to remain neutral; it needs to either be against the aggression or side with Russia,” says Ivane Chkhikvadze.
He believes that the Georgian government will not be able to maintain the fragile balance between European integration and rapprochement with China:
“Armenia is a good example of how balancing policies don’t work. It tried to stay in Russia’s orbit in terms of security while signing a partnership agreement with the European Union, and we all saw the result.”
Experts estimate that China’s economic power has become its political tool. Rapid economic growth has made the country a major player in international trade and investment. Currently, China’s economy is the second largest in the world (GDP $14 trillion), and the country is the largest global exporter of goods. Thanks to investments in infrastructure projects and strategic sectors, China’s geopolitical influence is also growing.
“In general, Chinese policy is not rigid or aggressive, like Russia’s, for example. On the contrary, it is quiet and covert,” says sinologist Teona Gelashvili.
Teona studied Chinese language and literature at Tbilisi State University, won a Chinese government scholarship, and went to China on a special study program. After completing the program, she decided to continue her studies at the Beijing International University in the Faculty of Sinology.
“These were international relations from an Asian perspective. Both Chinese and European professors taught. There I understood the peculiarities of how the Chinese view their country and the world from a political perspective.“
Teona believes that establishing strategic relations with China requires a detailed understanding of the country’s politics and culture. Her interactions with Chinese people and companies convinced her of the importance of maintaining a principled position. According to Teona, it is very important what position the Georgian government takes now:
“It’s important to understand that if one country is interested in another and invests a lot of resources, it wants to gain political influence over it.
You always need to be principled. If you show weakness, it will be exploited and used against you. It’s necessary to have firm positions.”
Georgia-China relations
Counterarguments
International relations expert Tornike Sharashenidze sees no risks at this stage in the intensification of economic relations between Georgia and China:
“Georgia is a poor country and it needs Chinese investments. If someone thinks we shouldn’t have economic interests, that’s just foolishness. Every country tries to have allies and partners everywhere. The more allies you have, the better it is for you.”
Sharashenidze believes that, unlike the European Union, Georgia cannot afford to forgo Chinese investments. He welcomes China’s investments in the Anaklia port if the state retains a controlling stake:
“Every small country has to consider the international context. When the world was unipolar in the 1990s and 2000s and America was the strongest state, Georgia fully aligned with the US. Now, with China as the second strongest player, Georgia takes this reality into account at some level. Moreover, Russia cannot openly oppose China. We can view cooperation with China as a counterbalance to Russia’s influence in the region.”
Georgian-Chinese relations today
According to recent data, China is Georgia’s fourth-largest trading partner. Over the last decade, trade turnover between the two countries has tripled. The main sectors of cooperation between Georgia and China are transportation, energy, and tourism.
Specifically, the trade volume last year approached $2 billion, a significant increase compared to the $1.1 billion in 2019. In the first quarter of 2023, Georgia received almost $20 million in Chinese investments.
Georgia became the first country in the region to sign a free trade agreement with China.
Georgia established a visa-free regime for Chinese citizens in September 2023. On February 26, 2024, it was announced that the People’s Republic of China would lift the visa regime for Georgian citizens. The visa-free regime took effect on April 10.
The agreement signed between the countries includes political, economic, international, and intercultural dimensions. Both sides agree that, alongside the intensification of trade, deepening bilateral relations is a priority in foreign relations. They announced the enhancement of political consultations between legislative and executive bodies and political parties. Georgia welcomes China’s “Belt and Road” initiative, as well as initiatives for global development, civilization, and security, and is convinced that “China offers humanity a new path and choice for achieving modernization.”
However, according to Georgia’s foreign minister, “the strategic partnership with China does not imply a change in the country’s foreign policy course.”
This article was published as part of the Spheres of Influence Uncovered project, implemented by n-ost.
Georgia-China relations
