Georgia-China Trade: Analysis of Key Products

Georgia and China, two economically and culturally distinct countries, are strengthening their ties and developing growing economic connections. As of 2024, trade between these two countries is expanding significantly, as reflected in the volume of imports and exports and the associated revenue figures. China is one of Georgia’s most important trading partners, especially considering that in January-August of this year, Georgia earned more than $202 million from exports to China. Let’s take a closer look at the key traded products and how these connections might develop in the future.

The largest share of Georgia’s exports to China is held by precious metal ores and concentrates. In January-August 2024, Georgia earned $122.1 million from exporting these products to China. The export of precious metals plays a significant role in the country’s economy, driven by the strong demand for such resources in China, which helps boost export volumes.

The second-largest category is bay leaves and spices, which demonstrates Georgia’s agricultural potential. In this category, Georgia earned $24.4 million. These products play an important role in Georgian agriculture as traditional crops with high demand in international markets.

Copper ores are the third-largest export, generating more than $20.2 million in revenue. This again highlights the importance of Georgia’s metallurgical resources in the economy, serving as a strategic resource recognized in the Chinese market.

Georgia’s exports to China also include catheters and medical instruments, which generated $12.4 million in revenue. Other notable products include copper waste and scrap, which brought in $5.8 million. Georgian wines, especially natural grape wines, remain one of the most sought-after products, with $5.6 million in export revenue. It is also worth mentioning pressure measuring devices and other medical equipment, which generated $3.3 million in exports. Additional exported products include raw aluminum alloys, copper alloys, and orthopedic braces, further highlighting Georgia’s unique resource capabilities.

Imports from China to Georgia are significantly larger than exports. In January-August 2024, more than $1 billion worth of goods entered Georgia from China, indicating that China actively participates in supplying various products to the Georgian market.

The top ten imported goods are led by dump trucks, valued at $26.6 million, which play an important role in Georgia’s infrastructure development. The second-largest imported product is air conditioning units, valued at $25.6 million, indicating a growing demand for energy-efficient technologies.

The structure of Georgia-China trade reveals interesting trends. Georgia has managed to establish certain strategic positions in the Chinese market through products like precious metal ores and medical instruments. This suggests that Georgia has the potential to expand into high-tech and raw material exports, especially given the growing demand in China.

On the other hand, imports from China to Georgia are much more diverse, including both technological and consumer goods. The volume of these imports can strengthen the local economy; however, it also implies risks related to trade deficits, which can impact the stability of Georgia’s economy.

In the future, Georgia can continue diversifying its exports, contributing to economic resilience and strengthening its position in international markets. It is crucial for Georgia to utilize its unique resources, such as agricultural products and high-quality wines, to further develop trade with China.

In terms of imports, it is important for Georgia to maintain a strategic partnership with China to ensure the supply of necessary technological and consumer goods for the economy. However, it is also necessary to attract investments that will promote the development of local production, helping to reduce Georgia’s trade deficit in the long term.