The Georgian government has proposed to one of the largest Chinese technology companies – Xiaomi – to consider the possibility of opening a facility for local assembly of products on the country's territory, UNN reports citing News of Georgia.
Details
The initiative was voiced during the visit to China by the head of the Ministry of Economy, Mariam Kvrivishvili, the ministry's press service reports. She held a meeting with the company's manager Simon Du, who is responsible for contacts with foreign governments. The parties discussed prospects for cooperation.
It involves creating a CKD (Complete Knock-Down) format enterprise in Georgia, which entails importing components and their subsequent assembly on site. According to the minister, this format will allow the company to use preferential trade regimes and supply products from Georgian sites to regional markets.
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Kvrivishvili also proposed considering Georgia as a base for developing regional logistics infrastructure, including for road transport. According to her, the country's geographical position – at the intersection of Europe and Asia – enables effective supply chains to the EU, Black Sea region countries, Caucasus, Persian Gulf, and Central Asia.
At the meeting, emphasis was placed on the strategic partnership agreement in effect between Georgia and China, as well as the free trade agreement and visa-free regime, which create favorable conditions for Chinese business. An additional factor, according to the minister, is the low tax rates.
During the visit, the Ministry of Economy delegation toured Xiaomi's production facilities and familiarized itself with the product assembly process.