New opportunities with major potential may emerge in Armenia-China economic relations

The China-Armenia Regional Development Foundation is creating a permanent export route for Armenian-made products to China, establishing a sustainable system.

In an interview with Armenpress, Sergey Avanesov, President of the China-Armenia Regional Development Foundation, said that the necessary infrastructure is already in place.

A wholly owned subsidiary of the foundation, Armenia China (Sichuan) Business Services Co., Ltd. (the “Armenian Trade House”), operates in China. It has a physical presence in Qingbaijiang, Chengdu, an Armenian pavilion and customs warehouses, established procedures for GACC certification, logistics and customs clearance, $120 million in authorized capital, and strong working relationships with Chinese banks, insurance companies and leasing companies.

Avanesov recalled that in August 2025, Armenian Prime Minister Nikol Pashinyan and Chinese President Xi Jinping held a meeting during which a memorandum on strategic cooperation was signed. It contains general provisions, while the “Armenian Trade House” offers concrete solutions.

“The leaders of the two countries created the foundation, and we need to give it flesh and blood. It is a very serious document under which specific mechanisms of cooperation can be implemented.

“The market for Armenian products in China is at the formation stage. Any organization that establishes a strong position there now—whether it is a producer, a logistics service provider or a bank—will gain an advantage for the coming years.

“We are entering the Chinese market not simply to supply one-off shipments, but with the aim of creating a permanent export corridor. Therefore, we are creating practical infrastructure for bilateral trade and using financial mechanisms to facilitate transactions,” Avanesov said.

According to him, all of this is part of the foundation’s systematic work within the framework of the strategic partnership between Armenia and China.

The “Armenian Trade House” is establishing practical ties by developing commercial proposals in cooperation with the foundation’s partner, Prom Expo. This means that it is no longer simply a project, but a real and functioning route.

“At the same time, we are launching a reciprocal initiative by establishing a ‘Chinese Trade House’ in Armenia. While the ‘Armenian Trade House’ operating in Qingbaijiang is paving the way for Armenian producers to enter China, the ‘Chinese Trade House’ in Yerevan is intended to serve as a platform for Chinese companies, products, investments and technologies to enter Armenia.

“This is a two-way process. The infrastructure is in place, and the producers are ready. The most important missing link at this point is a strong financial partner.

“We are offering Armenian banks an exclusive status as the financial operator for all transactions carried out under the program. This goes beyond servicing individual contracts and represents a real opportunity to strengthen a bank’s role and capabilities in the Chinese direction, gain direct access to Chinese banks and establish itself as a bank servicing Armenian exports to China,” Avanesov explained.

He said that an exhibition and trade fair of Armenian products is scheduled to be held in Chengdu in November this year, which will be the first systematic event aimed at directly presenting Armenian products to Chinese buyers, distributors and retail chains.

At the same time, work is continuing to launch the “Chinese Trade House” in Armenia.

To fully expand the established export route, it is necessary to involve the relevant ministries and agencies, first and foremost the Ministry of Economy, the Ministry of Foreign Affairs and customs authorities. It is particularly important to submit an official request to the relevant Chinese bodies to accelerate product certification and customs clearance procedures.

“We are now negotiating with all our potential exporters. They include, for example, Jermuk Group, Artfood and around 60 companies that want to enter the Chinese market.

“More and more Georgian restaurants are opening in Chengdu, while there is not a single Armenian restaurant there. Unfortunately, serious research into the opportunities is still not being conducted.

“Within the context of trade with China, exports currently amount to $2.1 billion, while imports amount to $900 million. Last year alone, sales of electric vehicles amounted to $300 million.

“This year, we plan to send Armenian-made agricultural machinery to China. The state exempts us from taxes. We also want to establish large-scale assembly of products made by Chinese companies in Armenia.

“The United States has imposed a 100% tariff on Chinese goods. Therefore, if the products are assembled here, they will also be considered Armenian, opening up major opportunities for us. In this regard, Armenia will be a good platform for exporting products,” Avanesov said.

Avanesov emphasized the importance of attracting Chinese financing for the implementation of various projects. The “Armenian Trade House” has already reached agreements with major Chinese retail chains that will purchase imported products and distribute them throughout the country.

“We need a stable partner bank, so we are negotiating with Ardshinbank, Amio Bank and Evoca Bank to establish insurance and leasing companies with the support of the bank.

“For example, one of the Chinese leasing companies is ready to provide us with leasing here at a rate of 5%.

“A global issue is being resolved today because the Chinese side wants to establish manufacturing enterprises in Armenia. The Chinese, in turn, are interested in the prospect of entering the Armenian market by establishing manufacturing operations that will be mutually beneficial,” Avanesov said.

He assured that they were ready to find partners in China for many Armenian companies. Numerous hotels and real estate agencies have already approached them; therefore, the foundation and the “Armenian Trade House” have become a kind of bridge for cooperation.

China Southern Airlines is already considering launching a Yerevan-Shanghai route following the Yerevan-Urumqi route, which would significantly boost bilateral relations.

Regular flights to China have already increased, with service becoming round-the-clock. Last year, 35,000 Chinese tourists arrived in Armenia. This year, according to forecasts, their number will reach 100,000. In this regard, China will rank second after Russia.

“We also cooperate with major Chinese logistics companies that have offices around the world. We can deliver Armenian products to China at affordable prices within two weeks.

“In addition to air connections, there is also the possibility of rail transport, because Chengdu also has a well-developed international railway hub. They are ready to transport the goods; that is their job.

“We have a huge ready-made base in China where we can store and distribute products. We need the state’s support.

“Product certification usually takes about three months. If our customs service approaches its Chinese counterparts, we are ready to provide assistance and resolve certification issues within one week.

“For example, it is very difficult to import tobacco into China, while we have agreed to distribute this type of product through duty-free networks,” Avanesov said.

He added that the “Armenian Trade House” is also considering exporting Armenian fish products and canning them in China, as that sector is also highly developed there.

“We also have another base located in Hainan. We can send wholesale products there and package them locally. We will soon also open an ice cream production plant in Hainan.

“For equipment worth $15 million, the Chinese side is providing us with a fairly favorable loan at an annual interest rate of 1%.

“We know the rules of the game, so we can clearly explain everything to our partners and guide them. Many Armenian banks do not have branches abroad, whereas it is already long overdue for them to enter the international arena.

“Today, we need a partner bank to which Chinese banks will provide funds for the targeted purchase of Armenian products. This is the ideal option because an effective and complete chain will be established,” concluded the President of the China-Armenia Regional Development Foundation.