Georgian Economy Minister meets Xiaomi leadership to discuss regional cooperation

Mariam Kvrivishvili, the minister of economy and sustainable development of Georgia, on Friday met with Simon Du, the director of international government affairs at Xiaomi Corporation, to discuss prospects for cooperation.

During the high-level meeting in Beijing, Kvrivishvili proposed the establishment of a completely knocked down assembly plant in Georgia. This initiative would involve importing components for local assembly, leveraging Georgia’s competitive business environment and strategic trade agreements to supply regional markets.

She noted that Georgia’s favourable business environment provides a solid foundation for the company to supply regional markets with products assembled in Georgia, benefiting from preferential tariff rates.

Kvrivishvili further proposed the development of a regional logistics hub for the automotive industry.

She stressed that Georgia can offer a regional logistics platform that would facilitate the distribution of Xiaomi products to neighbouring markets. The country’s strategic geographic location at the crossroads of Europe and Asia ensures efficient connectivity with the EU, the Black Sea region, the Caucasus, Gulf countries, and Central Asia. This would allow the company to distribute products from Georgia both to the local market and to Europe and Gulf countries, while coordinating regional supply chains.

The meeting highlighted that Georgia and China have a strategic partnership agreement, a free trade agreement, and a visa-free travel, providing a strong institutional framework for Chinese businesses operating in Georgia. It was also noted that Georgia offers one of the lowest tax rates globally to investors.

As part of the visit, the Georgian delegation toured a Xiaomi manufacturing facility, gaining first-hand insight into the company’s advanced production processes and technological innovations.