CHINA'S MAGAZINE 'CHINESE INVESTMENTS' HAS PUBLISHED THE ARTICLE 'WIN-WIN SUMMIT' DEVOTED TO THE SILK ROAD FORUM SUMMIT, HELD RECENTLY IN BEIJING, BY ZIVADIN JOVANOVIC

Zivadin Jovanovic, Belgrade Forum for World of Equals
Silk Road Connectivity Research Center (COREC)
In May 2017 China hosted One belt One Road Forum Summit in Beijing

New quality. The beginning of 2017 has marked further strengthening of cooperation between CEEC  and China (16+1) under the OBOR Initiative. Illustrative of the progress, comprehensiveness and new quality of cooperation has been recent opening of the Bank of China`s branch headquartered in Belgrade, Serbia. From now on The Bank of China will provide on the spot banking services to all agents of cooperation in investments, trade, tourism and other fields. In addition to Serbia, the Bank`s branch will cover other countries in South East Europe - Rumania, Bulgaria, Greece, Albania, FYROM, Montenegro, Bosnia and Herzegovina and others. The Bank of China is the forth strongest bank in the world and second strongest in China.

Serbia is long time friend and strategic partner of China, very active participant in cooperation China-CEEC under OBOR since the inception of the Initiative. At the same time EU has been Serbia`s No. 1 trade partner and Serbia has been some years now the candidate for EU membership. Naturally, Serbia`s long term interests are to harmonize own cooperation with both EU and China  , to contribute to the harmonization of EU – China cooperation and to strengthen its constructive role within 16+1.

China and European Union (EU) are strategic partners cooperating on bilateral and global issues. In 2014, EU imported €302 billion of goods from China and exported €164 billion of goods to China. On the global plan there is need for even more intensive cooperation in finding appropriate solutions to such problems as slowing down of the world economy, growing unemployment, international terrorism, regional conflicts and global warming. During his 2014 visit to Europe President Xi Jinping said that China would cooperate with Europe so as to integrate European and Asian markets and to make China and the EU the twin engines for global economic growth. According to the European Commission President Jean Claude Junker, Europe can benefit from the Chinese OBOR Initiative as it can interact with the EU €315 billion Investment Plan (2015-2017).

Compatibility. CEEC-China cooperation format aimed at intensifying and expanding cooperation between China and l6 countries of Central and East Europe  should be regarded as part and parcel of EU-China strategic cooperation, certainly not as a concurrence or weakening of internal EU coherence. Out of the 16 CEE countries, 11 are EU Member States while 5 countries are on various stages of the membership candidacy status. In the framework of the initiative, China has defined three potential priority areas for economic cooperation: infrastructure, high technologies, and green technologies which all make parts of EU strategy.

CEE sub-region plays role of a geopolitical bridge connecting Asia, Europe, the Mediterranean, and the Baltic. In fact, this part of Europe is economic and cultural connection between the West and East of Euro-Asia, gateway to EU with huge development potential still to be fully activated.

Two thirds of CEE countries which are full EU members do not see any conflict of interest with the rest of EU members. They follow the framework of EU – China comprehensive strategic partnership; they comply with technology, environment protection, public procurement and other EU standards. At the same time the most of CEE countries approach cooperation within l6+1 Initiative as the way to attain higher productivity, investments and economic modernization in order to alleviate existing economic and technological misbalances with much higher developed countries of the ‘Old Europe’ (Germany, France, Italy, Benelux).

All this is particularly true in the case of those five countries which are still in the EU candidate`s status (Albania, Bosnia and Herzegovina, FYROM, Montenegro and Serbia). No wonder that they perceive cooperation within 16+1 Initiative as helping them to achieve higher productivity and export potential, green energy production,  environment protection and many other EU standards in a more efficient way and in shorter period of time. Not to mention their anxiety to diminish burning problems of unemployment, high rates emigration (“brain drain”), poverty, growing social gaps and alike.

CEEC-China cooperation under OBOR is good example of shared responsibilities and opportunities. Strengthening of infrastructure connectivity between CEEC and China is integral part of strengthening overall connectivity throughout Euro-Asia. Win win cooperation and Chinese investments within 16+1 helps CEEC to acquire economic, technological, energy, green development standards which, otherwise, would remain sole responsibility of countries concerned and EU institutions.

Harmonizing development plans and economic policy measures wherever it is necessary for upgrading efficiency and facilitating cooperation under Belt and Road Initiative remains a continuous priority task. Coordinating bodies and associations established by 16+1 Summits, as well as bilateral consultations among member countries, will continuously play crucial role in this regard. 

CEEC – China cooperation under OBOR has proved very irreplaceable in modernization of trans-boarder infrastructure and strengthening of sub regional connectivity among CEE countries themselves. Excellent example in this regard is modernization of railway between Belgrade, Serbia and Budapest, Hungary (about 370km). This is only a part of the future high speed railway connection line from Port of Pireus, Greece , to Germany and other European destination, up to ports of North and Baltic Seas. The combination of railways between Greece (Pireus) and neighboring countries (FYROM, Serbia, Hungary) and sea-lanes will shorten the time of shipment to 7-11 days.

Cooperation CEEC – China under OBOR has excellent perspectives because it is based on win win principle, mutual understanding, flexible organization and without any political preconditions. Great achievements in practice are the best encouragement for further enhancement of cooperation in trade, investment, finance, tourism, education, agriculture and people to people exchange. Investments, particularly in infrastructure, have received strong impetus after China has opened a special credit line of 10 billion US dollars and establishment of Investment Cooperation Fund in support of cooperation 16+1 under OBOR Initiative. Openings of sub-regional Chinese banks` branches completed on the spot financial services needed in modern economic cooperation. These financial tools, in addition to organizational ones, represent the basis for network of synergy, including appearance of additional resources from national or international sources for continuous expansion of overall cooperation. 

EU itself is undergoing period of systematic crisis provoked by Brexit, massive immigration, expansion of international terrorism, monetary union imbalances, rise of nationalism and populism and alike. These, however serious and long term problems, should in no way diminish common efforts for continuous strengthening of EU – China overall economic cooperation, as well as cooperation within the 16+1 Initiative. In the new conditions cooperation 16+1 under OBOR should be further reinforced as a factor of stability and source of dynamism for overall EU – China cooperation.  New situation calls upon for active approach of all sides, for more not less openness, for intensification of dialogue and coordination on global, government agencies and think tanks levels. Pro-active approach, creation of new ideas and new synergies is the best response to the challenges of new era.  

Serbia and China - steel friends. Serbia and China are traditional strategic partners steadily developing bilateral and international cooperation in all fields of mutual interest. Serbian-Chinese relations are brilliant example of mutual respect, friendship and profound mutual trust.
The true nature of friendly relation, mutual trust is mirrored by continuous intensive political dialogue on the highest level. The Prime Minister of China Li Keqiang visited Serbia in 2014 when Serbia`s capital City of Belgrade was the venue of the third China-CEE Summit. In 2015 the President of Serbia Tomislav Nikolic visited China and contingent of Serbian Army participated at the celebration of 70 years since the liberation of China from Japanese occupation and victory over fascism, in Beijing. Last year President of the Republic of China Xi Jinping paid historic state visit to Serbia  during which 22 different agreements on cooperation between the two countries were signed. The set of documents includes, also, Joint Declaration on establishment of comprehensive strategic partnership. In March 2017 Serbia`s President Tomislav Nikolic paid official visit to China meeting President Xi Jin Ping, Prime Minister Li Keqiang, other state dignitaries and business community leaders in Beijing. This May the Prime Minister Aleksandar Vucic  is expected to attend the OBOR Initiative Summit in China.

Serbia`s role in the implementation of the China – CEE cooperation under OBOR is growing. In the past five years only, business partners from the two countries have been constructing or modernizing roads, highways, railways, ports, bridges, tunnels, thermo-electric plant, steel production, strengthening people to people exchanges.  As of January this year, no-visa system for citizens of the two countries came into force. A number of infrastructure projects, already implemented, or under implementation in Serbia, are highly important for modernization of connectivity in the CEE sub-region and in Europe.

New important projects are under consideration for implementation in the future concerning industry, mining, transport, food production, irrigation, tourism and other.

Cooperation between Serbia and China under the Belt and Road Initiative is an inspiring example of great achievements of win win cooperation within China+CEEC under OBOR initiative. First Chinese-built and financed Bridge in Europe was constructed in Serbia, over Danube River , while a number of other major bridges are under construction; as of 2016 the first Chinese steel factory in Europe operates in Serbia in the City of Smederevo, employing over 5.000 workers . first Chinese built and financed thermo power plant in Europe, Kostolac “B”  is under construction in Serbia ; first Bank of China`s branch in South East Europe has been recently opened in Belgrade; Serbia is the first European country which has  abolished visa for visitors from China as of January this year. Chinese companies have been engaged in many other infrastructure projects thus strengthening connectivity potentials of Serbia as a crossroad of European and transcontinental highways, railways, air-ways and inland water ways.

No wonder that, in the light of such unique achievements, Serbia and China have been publically characterized as “steel partners”.

To underline the importance of people to people exchange, cultural and scientific cooperation, the two heads of States - Tomislav Nikolic and Xi Jinping – in June 2016, have officially unveiled the Confucius monument and initiated construction of the Chinese Cultural Center in Belgrade. In March 2017 it was announced that Serbia is going to open own Cultural Center in Beijing.

Two countries agreed also to open direct air flights Belgrade-Beijing (Shanghai) thus complimenting no visa system, already in force. Expecting the growing number of tourists from China, Belgrade and other major cities of Serbia have, already placed hundreds of information boards featuring tourist information inscribed in Chinese language. More and more Serbian students and postgraduates have been educated in China and vice versa. In March this year 33 universities from Shanghai were introduced at the Ninth Shanghai Universities Fair held at the Belgrade State University. Theaters, operas, museums, academies of science and arts, students associations and think tanks have been steadily upgrading cooperation helping the public of both countries to know and understand each other better.

Some Serbia’s priorities.  Modernization of infrastructure and people to people connectivity should remain top priority for future Serbia - China cooperation in the framework 16+1 under OBOR Initiative.

High speeds railway Belgrade – Budapest (378km), which has been agreed upon, should be expanded to the south up to Athens, Greece (another 1.102km). It would be crossing several CEE countries providing the shortest connection between the falsest growing Mediterranean port of  Piraeus (Greece), and Central and Northern Europe (Corridor E-10). Two important branches of European corridor 10 should be also taken in consideration: 1. Nis (Serbia)-Sophia (Bulgaria)-Istanbul (Turkey); and 2.  Thessaloniki (Greece).

Chinese and Serbian companies have already been involved in construction of portions of the highway Belgrade (Serbia) –Bar (Adriatic Sea port, Montenegro). Completing this highway and adding to modernization of the railway, would not only  provide rational access of several land locked CEEC to Adriatic (Mediterranean) Sea (Bosnia and Herzegovina, Serbia, Hungary, Check Republic, Slovakia), but would also rationalize transport of goods and economic cooperation with China, in general. Finally, it would be compatible with the project of “Three Seas” (Adriatic, Black and Baltic Seas).   

The Belgrade Forum and COREC , being Serbian think tanks and members of Silk Road Think Tank Association (SRTA) , have proposed development and modernization of the Danube River inland water strategic European transport corridor. Danube River commends enormous connectivity and development potentials which deserve priority consideration (navigation, energy, irrigation, water preservation, food production, tourism, culture). Danube is the second longest river in Europe, next to Volga and far the shortest, low cost transport route between Black Sea and North Sea (Sulina – Rotterdam 3.500km). It flows through 10 CEE countries, 7 of which are EU members, while 9 others belong to the drainage basin. Danube`s length through Serbia is 588 km with seven ports, all needing modernization and expansion of capacities.

Positive experience with Chinese Hesteel Co. which has undertaken Smederevo Steel Factory in 2016 has encouraged in Serbia new similar ideas regarding some other big industries. In this regard, it would be important if partners from China would consider entering strategic partnership, or other form of cooperation regarding Bor Cupper Mining Company. Generally, Serbia is trying very hard to recuperate and modernize industry which has been devastated during the transition period. This is perceived as the way to provide rising employment for young qualified people and expand export to achieve better trade balance.

Win win Summit. The Belt and Road Summit in China will be the most important, constructive international conference reflecting global changes and new challenges in the world economy. It is expected to demonstrate strong political will in favor of win win cooperation, innovative, inclusive and sustainable development. No doubt that it will give new energy to the implementation of all current OBOR Initiative projects and open new horizons for future cooperation and coordination of participating countries.

Considering growing mistrust in the world, spreading of international terrorism and worsening of regional crisis it is expected that the OBOR Summit will contribute to easing of tensions, giving place to dialogue and shared responsibility in resolving peacefully all major crisis and problems. Peace and stability through dialogue, partnership based on sovereign equality, economic development and win win cooperation is guiding principle of OBOR Initiative and the only viable response to present challenges of the world community.

The OBOR Summit initiated by China`s President Xi Djinping will certainly send unique massage of reason, positive thinking and constructive acting. It will be the Summit of win win cooperation, partnership and all inclusive development.