China-Georgia FTA: A Strategic Trade Agreement

As Georgia continues to position itself as a strategic connector between East and West, its economic partnership with China is gaining more and more attention. The China-Georgia FTA (Free Trade Agreement), which entered into force on January 1, 2018, was China’s first free trade deal with a Eurasian country. This trade deal eliminates tariffs on the vast majority of goods exchanged between the two countries. The China-Georgia FTA grants Georgian producers access to one of the world’s largest consumer markets while attracting Chinese interest in Georgia’s strategic location. The FTA has boosted exports of Georgian wine, mineral water, and copper, and strengthened economic ties through growing trade volumes and infrastructure investment opportunities.

Expanding Trade Volumes and Strategic Connectivity

China has rapidly become one of Georgia’s most important economic partners. In 2024, it ranked as Georgia’s fourth-largest trading partner, with total trade turnover reaching approximately $1.916 billion, a 17% increase compared to 2023. Chinese companies have expanded across Georgia’s infrastructure, energy, logistics, and construction sectors. Many of these investments align with China’s Belt and Road Initiative (BRI) –  a global development strategy launched in 2013. Georgia’s geographic position in the Middle Corridor makes it a valuable partner for China and the China-Georgia FTA reinforces this strategic alignment.

Key Sectors in Georgia-China Bilateral Trade     

 The trade between Georgia and China highlights both countries’ competitive advantages. Georgia’s exports to China are led by copper ores and concentrates. Other key products include wine, mineral water, and an expanding range of agricultural goods. Georgian wine, in particular, has seen notable success under the China-Georgia FTA. Between 2015 and 2022, wine exports to China more than doubled, demonstrating Georgia’s ability to compete in sophisticated global food markets. Imports from China are favoring machinery, electronics, consumer goods, and construction materials. The agreement eliminates tariffs on 94% of Georgian goods entering China and about 90% of Chinese goods entering Georgia. This provides clear benefits for both exporters and consumers under the China-Georgia FTA.

FDI, Industrial Zones, and the Belt and Road

Despite increasing trade flows, Chinese foreign direct investment (FDI) in Georgia remains limited. In 2023, Chinese FDI amounted to $47 million, making China Georgia’s ninth-largest investor. However, China’s footprint is more visible in strategic sectors. One of the most notable examples is the Poti Free Industrial Zone, in which a Chinese state-owned enterprise holds a 75% stake. With China expanding its global trade footprint and Georgia advancing its transit and logistics capabilities, the China-Georgia FTA provides a platform for strategic gains, if approached with foresight. 

SGBA’s Role in Future China-Georgia Cooperation

For the Spanish-Georgian Business Alliance (SGBA), this is a moment to facilitate targeted, high-value investment that strengthens Georgia’s industrial base. Chinese-funded industrial zones and infrastructure can drive export-oriented growth. However, to reach their full potential, they require specialized capabilities and cross-border collaboration. SGBA’s role is clear: to connect elite businesses and decision-makers across Spain, Georgia, and global markets, ensuring that new opportunities are strategically integrated, compliant, and future-facing. With deepening trade ties and China’s continued global expansion, SGBA is ready to guide strategic collaboration and investment along the China-Georgia corridor.