On March 31, 2025, the National Bank of Georgia signed a memorandum of understanding with the People’s Bank of China in Beijing, outlining cooperation in monetary policy, financial technology, payment systems, and securities market development. This development marks a new phase in bilateral cooperation between the two countries, and is part of Georgia’s broader strategic reorientation, moving away from its traditional Euro-Atlantic trajectory toward deeper alignment with China. That shift has been marked by growing cooperation in infrastructure—such as the Anaklia deep-sea port—and digital integration via Chinese surveillance and communications technologies, and has been coupled with a political distancing from the European Union (EU), as integration talks have been postponed to 2028 by the Georgian government. As China strengthens its influence in the South Caucasus through the Belt and Road Initiative (BRI) and investments in the Middle Corridor, Western engagement in Georgia has declined—driven in part by growing concerns over democratic backsliding. The result is a geopolitical realignment that could significantly impact regional stability, trade routes, and Georgia’s long-term strategic positioning between East and West.
Key Takes
- Georgia and China have expanded their strategic partnership through recent agreements in banking, infrastructure, and technology, solidifying Beijing’s presence in the South Caucasus.
- A Chinese-led consortium secured rights to build and operate the Anaklia deep-sea port, a key node in the Middle Corridor, with the Georgian government retaining a 51% stake.
- The March 2025 central bank agreement signals China’s deeper integration into Georgia’s financial system, including collaboration on payment systems, fintech, and capital markets.
- Georgia has reversed earlier commitments to limit Chinese tech influence and now relies on Chinese firms for surveillance infrastructure, customs systems, and public sector digitization.
- Chinese technologies embedded in state systems present long-term risks to data governance, cybersecurity, and national sovereignty.
- The Middle Corridor (TITR) is gaining momentum as a viable alternative to Russian and Red Sea routes, with freight traffic from China through Georgia rapidly increasing.
- China’s soft power strategy in Georgia includes educational programs, Confucius Institutes, and targeted media messaging to shape public opinion and normalize Chinese influence.
- Western disengagement, particularly on democracy support and infrastructure investment, has created a vacuum increasingly filled by Chinese and, to some extent, Russian interests.
- Georgia’s shift reflects broader authoritarian trends at home, including contested elections, pressure on civil society, and alignment with alternative governance models promoted by China.
- If current trends continue, Georgia may gravitate further toward Chinese-led platforms such as BRICS or the 3+3 regional initiative, complicating its Euro-Atlantic aspirations and regional balance.
The Belt and Road Initiative and the Trans-Caspian International Transport Route
The BRI is China’s global infrastructure and connectivity strategy, launched in 2013 to strengthen trade and investment links across Asia, Europe, and Africa. A central component is the development of transport corridors, including the Middle Corridor—formally known as the Trans-Caspian International Transport Route (TITR). This east-west route connects China to Europe via Kazakhstan, the Caspian Sea, Azerbaijan, and Georgia, bypassing Russia and the Suez Canal. As traditional trade routes face growing disruptions—such as those caused by the Houthi movement in the Red Sea—the Middle Corridor has taken on increased strategic significance for both China and the EU, positioning Georgia as a critical transit and logistics hub.
Middle Corridor Connectivity and Georgia’s Strategic Position
Georgia’s geographic position makes it an essential component of the TITR, providing a critical transit link between China and Europe via Kazakhstan, the Caspian Sea, and Azerbaijan. The recent restoration of ferry services between Ukraine and Georgia has further enhanced regional connectivity, complementing the TITR and bolstering Georgia’s role as a logistics hub within broader Eurasian trade networks.
Trade volumes along the Middle Corridor have grown rapidly, reflecting its strategic importance amid disruptions on traditional routes. Early 2024 alone saw 212 container trains transporting 420,000 tons of cargo, a substantial increase from just 11 trains during the same period in 2023. Azerbaijan Railways forecasts further growth, with expectations reaching 300 container trains by the end of 2024 and a longer-term target of 1,000 trains annually. This surge emphasizes Georgia’s strategic importance in meeting growing logistical demands to link the East and the West.
The Anaklia Deep-Sea Port Project and Georgia’s Partnership with China
To address increasing capacity constraints at Georgia’s existing ports of Poti and Batumi, the Anaklia deep-sea port project was initiated, marking a significant step toward expanding Georgia’s maritime logistics capabilities. Two Chinese companies, China Communications Construction Company and China Harbour Investment, secured the rights to build and operate the port, involving an initial investment of $600 million. The project’s first phase will deliver a cargo berth and a container terminal capable of handling 600,000 TEU (Twenty-foot Equivalent Unit, a standard measure used in the shipping and logistics industry to describe the capacity of container ships and ports, with 1 TEU = 1 standard 20-foot shipping container) annually. The Georgian government retains a controlling stake of 51%, with a Chinese-Singaporean consortium holding the remaining 49%.
The Anaklia port project directly aligns with China’s Belt and Road Initiative, and enhanced Georgia’s strategic value as a pivotal logistics node within the Middle Corridor. It is also part of a broader deepening of bilateral ties between Georgia and China, reflected in significant political and economic developments: in August 2023, during then-Prime Minister Irakli Garibashvili’s visit to Beijing, the two nations formally elevated their bilateral relationship to a strategic partnership, emphasizing enhanced cooperation across political, economic, and cultural sectors.
Digital Infrastructure and Technology Integration
Parallel to infrastructure development, China’s role in Georgia has expanded significantly into digital and technological spheres. Despite a 2021 memorandum of understanding with the United States aimed at limiting the presence of Chinese technology firms, Georgia’s government continues to strengthen cooperation with Chinese companies such as Huawei, Dahua, Hikvision, and Tiandy. These companies have increasingly provided surveillance systems, customs control technologies, and digital infrastructure for public institutions.
This integration of Chinese technology raised concerns among Georgia’s Western allies due to the companies’ histories involving surveillance controversies and existing U.S. sanctions. The deployment of these technologies in critical government sectors signifies deeper bilateral ties and potential long-term dependencies, influencing Georgia’s digital sovereignty and cybersecurity landscape.
Financial and Diplomatic Reinforcement of China-Georgia Relations
China’s growing influence in Georgia extends beyond infrastructure, encompassing diplomatic and financial cooperation. This strategic partnership builds upon prior economic agreements, including the Free Trade Agreement enacted in 2018 and the introduction of a visa-free regime for Chinese nationals in September 2023.
Following Georgia’s disputed 2024 elections, China swiftly endorsed the new government led by Prime Minister Irakli Kobakhidze. Notably, the Chinese ambassador met with Interior Minister Vakhtang Gomelauri even after the latter was sanctioned under the U.S. Magnitsky Act. Additionally, Chinese President Xi Jinping congratulated newly elected Georgian President Mikheil Kavelashvili, reaffirming China’s commitment to Georgia’s active participation in the BRI.
China’s consistent diplomatic backing is reciprocated by Georgia’s public endorsement of major Chinese initiatives, notably the Global Development Initiative, the Global Security Initiative, and the Global Civilization Initiative. These initiatives collectively ressemble a contemporary Marshall Plan, utilizing economic cooperation, security partnerships, and cultural exchanges to expand Beijing’s global influence through strategic soft power rather than explicit political conditionality. These diplomatic endorsements signal an alignment with China’s global governance model, positioning Georgia more closely with Beijing’s international strategy, particularly amid Western criticism and strained relations.
Soft Power and Educational Engagement
This alignment is further reinforced through China’s growing emphasis on educational exchanges and cultural outreach within Georgia. China has significantly increased scholarship opportunities for Georgian students, expanded the presence and activities of Confucius Institutes, and promoted Mandarin language education across the country. Concurrently, Chinese-backed media initiatives actively seek to alleviate public concerns about China’s investment activities and technological integration.
These soft power activities aim at cultivating favorable perceptions of China among the Georgian public, particularly as Western educational and cultural programs face decreased funding and reduced visibility. By fostering cultural ties and promoting China’s image as a development partner, Beijing seeks to normalize its role and influence within Georgia’s social and educational landscape.
Analysis and Future Outlook
Georgia’s alignment toward China represents a strategic shift influenced by several interconnected factors. Rising authoritarian trends within Georgia, diminishing Western political and financial engagement, and China’s readiness to provide infrastructure investment without stringent political conditions have collectively accelerated this pivot. China’s pragmatic approach, unburdened by democratic considerations, makes it an appealing partner for a Georgian leadership increasingly criticized by Western institutions.
The Anaklia port exemplifies China’s broader global strategy, developing and investing in the key infrastructures it needs for its BRI project, while reinforcing Georgia’s crucial position within the Middle Corridor. Despite holding a minority stake, China’s central role in project development and operations amplifies its influence in Eurasian logistics, enhancing its strategic footprint in the region.
Financially, China’s penetration into Georgia’s banking sector, formalized by the 2025 agreement with Georgia’s central bank, indicates growing systemic influence. By promoting financial interoperability and fintech integration, China aims to embed itself structurally within Georgia’s financial system, echoing similar strategies employed in other partner countries.
Technologically, Georgia’s adoption of Chinese digital infrastructure, especially through surveillance and ICT provided by firms under U.S. sanctions, presents potential vulnerabilities in data protection, cybersecurity, and strategic autonomy. Such integration facilitates internal political control for Georgian authorities while deepening dependency on Chinese technological ecosystems.
China’s soft power initiatives further complement its broader strategic engagement, shifting societal attitudes gradually toward acceptance of China’s model of governance and global presence. Coupled with Beijing’s political support for Georgian leadership, this multidimensional approach may solidify Georgia’s realignment toward China.
Looking forward, three potential scenarios emerge:
- Pessimistic Scenario: Georgia continues on its authoritarian trajectory, seeking allies away from the West and deepening integration with China and Russian-led platforms such as BRICS and the 3+3 regional initiative. This would increasingly isolate Georgia from Western institutions and subject its infrastructure to external authoritarian influences.
- Intermediate Scenario: Georgia maintains pragmatic relations with both China and the West but faces escalating tensions over governance standards, geopolitical positioning, and digital sovereignty. This scenario involves ongoing friction without a decisive pivot toward either side, requiring careful diplomatic management to maintain a stable and balanced position.
- Optimistic Scenario: A renewed Western re-engagement with Georgia occurs, characterized by an increased support for democratic institutions and diversified investment in critical infrastructure. Such a scenario could counterbalance Chinese influence and maintain Georgia’s alignment within the Euro-Atlantic community.
Several factors could stabilize Georgia against a complete geopolitical drift, including its generally pro-Western population, as demonstrated during the protests hold for the past year. However, ongoing political repression, elite capture, and sustained disinformation campaigns threaten internal resilience, potentially eroding the ability to resist authoritarian influences.
Conclusion
Ultimately, Georgia’s strategic alignment is not yet irreversible, but the trend toward deeper integration with China continues. Without timely, proactive, meaningful Western engagement—politically, financially, and strategically—the realignment risks fundamentally reshaping Georgia’s geopolitical future and altering the balance of influence throughout the South Caucasus region. If unaddressed, the shift risks redefining not only Georgia’s future but also the balance of influence in the South Caucasus and the viability of trans-Eurasian connectivity free from authoritarian control.