MINISTRY OF ECONOMY
AND SUSTAINABLE DEVELOPMENT
OF GEORGIA

Within the visit to China, Mariam Kvrivishvili, the Minister of Economy and Sustainable Development of Georgia, met with Simon Tu, Director of International Government Affairs at Xiaomi Corporation, to discuss cooperation opportunities with the Chinese tech giant.

The Minister noted that Georgia has proposed the establishment of a local assembly plant, a so-called CKD (Completely Knocked Down) facility, to Xiaomi. The project involves importing product components for local assembly. The Minister emphasized that Georgia’s favorable business environment provides a solid foundation for the company to supply regional markets with Georgian-assembled products utilizing preferential tariff rates.

The Minister also suggested developing regional automotive logistics representation for the Chinese company. During the meeting with Simon Tu, Mariam Kvrivishvili noted that Georgia can provide a regional logistics platform to facilitate the distribution of Xiaomi products to neighboring markets. The country’s geographical location at the crossroads of Europe and Asia ensures effective connectivity with the EU, the Black Sea region, the Caucasus, the Gulf countries and Central Asia. This would allow the company to distribute products from Georgia to the local market as well as the European region and the Gulf, while coordinating product availability and regional supply flows.

It was noted during the meeting that the Strategic Partnership Agreement between China and Georgia, along with the Free Trade Agreement and bilateral visa-free travel, creates a strong institutional basis for Chinese business in Georgia. It was also highlighted that Georgia offers investors some of the lowest tax rates in the world.

The delegation from the Ministry of Economy and Sustainable Development toured the Xiaomi factory and observed the production process on-site.