China, India Expand Economic Influence Across South Caucasus Amid Trade Corridor Shifts

The South Caucasus and Central Asia have gained strategic economic and geopolitical importance amid shifting global trade corridors and great power competition. Countries in these regions benefit from mediating trade between major powers like the US, China, and Russia, especially as traditional routes are disrupted by conflicts such as the Russia-Ukraine war and tensions in the Red Sea. The Caspian Logistics Corridor and Middle Corridor have emerged as critical pathways connecting Asia and Europe, supported by initiatives from regional players and companies like Paka Group. China and India are engaging in a subtle competition in the South Caucasus through infrastructure and economic projects, responding to the changing dynamics and seeking influence without direct confrontation. Meanwhile, the broader global order is transitioning from US-dominated unipolarity to a contested multipolar landscape, with China’s Belt and Road Initiative challenging Western economic and institutional dominance. These developments underscore the growing significance of the South Caucasus and Central Asia as pivotal nodes in new geopolitical and economic networks.