World
Partnership between China and Central and Eastern Europe bears tangible fruits
By Wen Qing  ·  2021-02-26  ·   Source: NO.9 MARCH 4, 2021

Beer from Estonia on display in the food and agricultural product exhibition area of the Second China International Import Expo in Shanghai, China, on November 7, 2019 (XINHUA)

When 1 million doses of the inactivated coronavirus vaccine developed by Chinese company Sinopharm arrived at Serbia's Belgrade Airport on January 16, President Aleksandar Vucic was there to receive them. Vucic described the arrival as "proof of the great friendship between Serbia and China." The second batch of Chinese vaccines landed a month later.

The vaccine cooperation between China and Serbia represents their bilateral synergy in miniature. It also symbolizes the wider collaboration between China and Central and Eastern European (CEE) countries.

"Guided by the conviction that '17 plus could make more than 18,' we have set up a multidimensional cooperation framework led by the leaders' summit and covering 20-plus sectors to ensure the participation of all CEE countries," Chinese President Xi Jinping said in his keynote speech at the virtual China-Central and Eastern European Countries (CEEC) Summit on February 9.

"Nine years ago, with a commitment to win-win cooperation and common development and a resolve to create a better future together, we jointly initiated this cooperation mechanism between China and CEE countries," he added. "Nine years on, China-CEEC cooperation has stood the test of time and intricate changes in the international landscape."

Since the mechanism was initiated in 2012, China and CEE countries' cooperation has progressed pragmatically in areas like the economy and trade, infrastructure development and education.

Secrets behind

Compared with nine years ago, trade between China and CEE countries has grown nearly 85 percent more. In 2020, it reached $103.45 billion, crossing the $100-billion threshold for the first time, data from the Chinese Ministry of Commerce showed. The figure represented a year-on-year increase of 8.4 percent, higher than the growth rate of China's overall foreign trade and its trade with Europe as a whole.

China and CEE countries invested $3.14 billion and $1.72 billion in each other by the end of 2020. Last year, the total contract value of China's newly signed overseas projects with the 17 countries spiked 34.6 percent to $5.41 billion.

Moreover, the number of mutual tourist visits has grown nearly five times since 2012. The China Railway Express that runs container services from China to Europe covers most of the CEE countries. It has operated more than 30,000 trips so far.

According to Dong Yifan, an assistant research fellow with the China Institutes of Contemporary International Relations, these substantial results are due to the guiding principle of the cooperation that all decisions are to be made after extensive consultations and the projects should deliver pragmatic benefits to all partners.

"The China-CEEC cooperation is based on mutual respect," Dong told Beijing Review. This means all the countries involved, regardless of their size, are equal partners in a cooperation mechanism featuring extensive consultation, joint contribution and shared benefits.

"Extensive consultation is the most widely accepted rule practiced during bilateral cooperation," Huo Yuzhen, Chinese Special Representative for Cooperation between China and CEEC, said. All projects are decided based on the national reality of each country, and all countries are encouraged to find the best way to leverage their respective strength.

For example, CEE countries are rich in agricultural production. Specifically, Bulgaria is famous for its roses, Romania red wine, and Poland dairy products. China, with its 1.4-billion population, including a middle-income group of over 400 million, aims to deepen agricultural cooperation, which will see these countries' agricultural exports to China double. At the summit, Xi promised to raise two-way agricultural trade by 50 percent over the next five years.

There is large untapped potential in this sector. In 2019, CEE countries accounted for just about 0.63 percent of China's total farm produce trade, comprising mostly livestock products, aquatic items, fruits and vegetables, worth a mere $1.46 billion, according to statistics from the Ministry of Agriculture and Rural Affairs.

"More should be done toward mutually beneficial trade and investment cooperation to promote balanced and sustainable trade growth," Xi told the summit. "China intends to import, in the coming five years, more than $170 billion of goods from CEE countries."

Moreover, many CEE countries have poor and rundown infrastructure whereas China has established a reputation for its expertise in infrastructure construction. So bilateral cooperation also extends to this area.

It includes the construction of milestone projects like the Port of Piraeus in Greece and the Peljesac Bridge in Croatia, which have enhanced connectivity and transport; and the Smederevo steel plant in Serbia, which has created jobs and contributed to the growth of the national economy.

Going forward

There is a huge gap between Western Europe and CEE countries in their levels of development. Since CEE countries lag behind, the prosperity and stability of the Western Balkan region, the location of many CEE countries, is in the interests of the entire EU, Dong said.

"Cooperation between China and CEE countries will help bring more development momentum to this region and narrow the gap of development with Western European countries. It will contribute to the EU's regional integration and boost its long-term development," he said.

Going forward, China and CEE countries have a lot of potential to tap in diverse areas. Fighting the COVID-19 pandemic is currently the most pressing task for the world. "China stands ready for vaccine cooperation with CEE countries," Xi said at the summit. Besides Serbia, there is ongoing cooperation between Hungary and Chinese vaccine companies.

"China will actively consider such cooperation with other CEE countries if there is the need," Xi said.

China and CEE countries should also capitalize on various emerging business forms to widen cooperation in the digital economy, e-commerce and healthcare. "The China-EU Geographical Indications (GIs) Agreement and the China-EU Comprehensive Agreement on Investment (CAI) will create more opportunities for CEE countries," Dong said.

Signed in September 2020, the GI pact saw the two sides agree to protect 100 Chinese GIs in the EU and vice versa to prevent imitation and usurpation, ensuring the authenticity of the products.

The CAI, concluded in principle in December 2020, will see both parties open up wider to each other's investors, improve transparency and create a level playing field.

Liu Zuokui, a researcher with the Chinese Academy of Social Sciences, emphasized the openness of the China-CEEC mechanism. "This platform is open and welcomes interested countries' participation," Liu said.

In April 2019, Greece joined the partnership, expanding the previous 16 (CEE countries) Plus 1 (China) cooperation mechanism into 17 Plus 1. Representatives of the EU, other European countries and multilateral institutions like the European Bank for Reconstruction and Development are invited to the annual leaders' meeting as observers.

"China-CEEC cooperation is an important part of China-EU relations," Dong said.

(Print Edition:17+1>18 )

Copyedited by Sudeshna Sarkar

Comments to wenqing@bjreview.com

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