A New Chessboard Across the Caspian Sea: Azerbaijan Becomes a Strategic Pivot Connecting Central Asia to the World

On January 5, 2026, Azerbaijani President Ilham Aliyev, in an interview with local television, comprehensively elaborated on the country's strategic considerations regarding its relations with the United States, China, and regional organizations. He called 2025 a "historic year" for Azerbaijan-US relations, while emphasizing that the establishment of a comprehensive strategic partnership with China was an "extremely important event."

This statement reflects Azerbaijan's multi-directional balancing diplomatic strategy as a resource-rich South Caucasus nation in the great power game. With the evolution of the international landscape, this country located at the crossroads of Eurasia is actively reshaping its regional role and global positioning.

01 Azerbaijan-US Relations: From Crisis to Opportunity

In the interview, Aliyev frankly reviewed the tortuous history of Azerbaijan-US relations. He specifically pointed out that the 907th Amendment to the US Constitution has long been an obstacle to the development of bilateral relations. This act restricts US aid to Azerbaijan, effectively hindering the establishment of broader relations between the two countries.

“The Biden-Blinken administration actually plunged our relationship into crisis,” Aliyev said. He criticized the Biden administration for halting the waiver of the clause after the end of the US military mission in Afghanistan, calling the decision “ungrateful.”

With the Trump administration taking office, US-Afghanistan relations saw a turnaround. Aliyev noted, “With the Trump administration, the situation changed dramatically.” He emphasized that members of the Trump administration were “pragmatic and professional” and clearly understood US national interests.

The 907th Amendment dates back to the events of September 11, 2001, when the US president signed a waiver of the amendment, which remained in effect until 2024. Aliyev hopes the Trump administration can use its influence to persuade members of Congress to completely repeal this “unjust amendment.”

02 Relations with China: The Rise of a Comprehensive Strategic Partnership

In contrast to his pragmatic assessment of US relations, Aliyev’s description of Afghanistan-China relations was enthusiastic. He called the strategic partnership established with China “one of the most important events.”

In April 2025, Aliyev will pay a state visit to China, and the two sides will sign a Joint Statement on Establishing a Comprehensive Strategic Partnership. Prior to this, in July 2024, during the Shanghai Cooperation Organisation (SCO) summit in Astana, the two sides signed a Joint Declaration on Establishing a Strategic Partnership.

Aliyev emphasized that "China is one of the world's leading countries," and bilateral trade has exceeded $4 billion. Chinese companies have begun actively investing in Azerbaijan's renewable energy, transportation, and other sectors.

Regarding military-technical cooperation, Aliyev revealed, "We are not limited to purchasing military equipment; we are also working to establish joint ventures, and related work has already begun." This increased level of cooperation marks a new stage in the deepening of bilateral relations.

03 Regional Economic Integration: A Bridge Strategy Connecting East and West

Azerbaijan's geostrategic location makes it a natural bridge connecting East and West. In the interview, Aliyev emphasized the importance of the railway project connecting Nakhchivan and Turkey.

"We would have done this anyway, but I'm glad we can do it peacefully," Aliyev said regarding the Zangezur Corridor construction. This planned transport route will connect Azerbaijan mainland with its exclave of Nakhchivan, and then link it to Turkey.

As an important node in the Belt and Road Initiative, Azerbaijan actively participates in the construction of the Middle Corridor (Trans-Caspian International Transport Corridor). In 2024, transit traffic between the two countries surged by 86%, becoming a new highlight of pragmatic cooperation between China and Azerbaijan.

Aliyev also pointed out that Armenia will also benefit from regional connectivity: "Armenia will connect to Iranian railways through Nakhchivan and to Russian railways through Azerbaijan. There should be no losers here."

Azerbaijan was known for its developed oil refining and machinery manufacturing industries during the Soviet era, and its capital, Baku, was known as the "Oil City." Today, it is leveraging its advantageous geographical location to develop into an important logistics and transport hub.

04 Multilateral Diplomacy: Active Role on the International Stage

In 2025, Azerbaijan actively voiced its opinions on multiple international organizations and platforms. Aliyev specifically mentioned that joining the D-8 was "a very great achievement," emphasizing that "the organization has been established for nearly 30 years and has never admitted a new member since its inception."

The D-8 (Group of Eight) comprises major countries in the Muslim world, with a total population exceeding one billion and an economic output exceeding four trillion US dollars. Aliyev believes that Azerbaijan's accession to this organization "is a sign of respect for us and a result of our policy of independence and self-reliance."

Within the framework of the Shanghai Cooperation Organisation (SCO), Azerbaijan also actively participates in cooperation. In August 2025, when Xi Jinping met with Aliyev in Tianjin, who was in China to attend the SCO summit, he stated that China supports Azerbaijan's accession to the SCO and is willing to work closely with Azerbaijan in multilateral cooperation to safeguard the common interests of the global South.

Aliyev also mentioned the proposal to hold joint military exercises within the framework of the Organization of Turkic States: "I think this is also necessary. We conduct military exercises bilaterally with member states—most commonly with Turkey, of course, but also with other countries."

05 The Art of Balancing Great Powers: The Essence of Pragmatic Diplomacy

Azerbaijan's diplomatic strategy reflects the survival wisdom of a middle-income country in the game of great powers. Aliyev bluntly stated: "There is no international law in today's world. Everyone should forget that. Now there is only power, cooperation, alliances, and mutual support."

This pragmatic diplomatic thinking reflects Azerbaijan's clear understanding of the realities of international politics. As a resource-rich country situated in a complex geopolitical environment, Azerbaijan needs to maintain a balance among great powers.

Historically, Azerbaijan has always pursued a balanced diplomacy. As early as 2003, Aliyev stated during a meeting with American guests: "Azerbaijan will always stand with the Americans, even when 'other countries stand aside'." However, at the same time, Azerbaijan has also consistently maintained necessary relations with Russia.

While developing relations with the West, Azerbaijan also values ​​its relationships with regional powers such as Russia. This balancing strategy allows Azerbaijan to safeguard its interests in a complex geopolitical environment.

As the international landscape becomes increasingly multipolar, Azerbaijan's balanced diplomacy has earned it broader international space. From energy cooperation to the construction of transportation hubs, Azerbaijan is leveraging its geographical and resource advantages to find a new position in the process of global order restructuring.

With the advancement of regional infrastructure connectivity, Azerbaijan launched several key transportation projects in 2025. The Kars-Öder-Aralık-Dilju railway line on Turkey's northeastern border held its groundbreaking ceremony in August, which will further strengthen Azerbaijan's position as a bridge between Eurasia.

The geopolitical landscape is also subtly shifting. With the lifting of restrictions imposed by the 907th Amendment, US companies may increase their investment in Azerbaijan's energy and transportation sectors. Meanwhile, China, through its Belt and Road Initiative, has already implemented several infrastructure projects in Azerbaijan.