12:34 - 5.02.2020

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February 5, Fineko/abc.az. Expert economist Rovshan Agayev raised the question, which sector in Azerbaijan can be affected by the restriction of relationships with China.

ABC.AZ reports that the expert noted that Azerbaijan’s import from China ranks the 3rd place after Russia and Turkey.

According to Agayev, about 10% of total imports come from China: "But measuring the real market demand on the cost of imports can be misleading, because cheap imports in kind presents a more decisive market share. For example, we can buy textiles and clothing from Turkey and China at the same price. But if the same goods come from China by 50% cheaper, in this case, its share in the compensation of demand in the market will be by 50% more than in Turkey."

Agayev presented the distribution in value terms of Azerbaijan's imports from China by product groups as follows:

Foods and tobacco - 0.9%

Wood, paper and cardboard products - 1.8%

Mineral and chemical solutions - 3.3%

Products made of gypsum, stone ceramics - 3%

Plastics, rubber and rubber products - 6.2%

Metal and metal products - 11%

Textile and clothing products, leather products - 15%

Machines, mechanisms, electrical equipment, vehicles - 50%.

The share is calculated based on the basis of cost indicators. A more correct approach towards assessing the possible impact on markets is possible by performing calculations based on natural indicators.

By Elmir Murad