This Policy Brief was prepared for the Symposium on “16+1 Cooperation” in Synergy with the “Belt Road” Initiative”, organized by Chinese Academy of Social Sciences in Beijing 25 June – 1 July 2017.

The current text is an updated and adapted version of March 2018 for publication under the Berlin Process Series. The Berlin Process Series is an initiative started by Cooperation and Development Institute, in November 2015, in Tirana, and supported by Friedrich Ebert Foundation, Konrad Adenauer Foundation and Hanns Seidel Foundation.

It consists in:
a) Research on the Berlin process and its priority areas;
b) monitoring of progress in Connectivity Agenda and in WB6
Regional Cooperation; and
c) Annual conference on the Berlin process”, followed by publication of conference proceedings.

Tags: China, Connectivity, Economy, Transport, Western Balkans

How does China’s growing global role affect the current dynamics of the Mediterranean region? This report aims to answer this question by exploring the most recent trends in the relations between China and the countries in the greater Mediterranean region.

Tags: China, Connectivity,  Mediterranean, Western Balkans

In 2018, Chinese investment in the Western Balkans shifted from infrastructure towards mergers and acquisitions (M&A). Two such M&As took place in the mining and rubber sector while a Chinese-owned steel mill in Serbia jumped from bankruptcy in 2016 to the 66th biggest company in Southeast Europe in 2018. Speedy loan procedures and the revitalization of “lost” cases characterize the Chinese involvement in the region. But Chinese companies are absent from regional cooperation thus limiting the expansion of “China Inc.”.

Moreover, when compared with investment volumes by the EU in the region, China’s resource commitment still remains small. The “Berlin Process” in the region focuses on connectivity and regional cooperation. This may provide the launching pad from which “China Inc.” and corporations in Europe can connect. It could be a win-win- scenario starting from the Western Balkans.

Tags: China, Connectivity, Economy, Transport, Western Balkans

The Belt & Road Initiative has spurred the production of a large number of data, information on and research into Chinese endeavors in the Western Balkans (WB). This existing body of knowledge has created the base from where further and more focused research can be carried on, and relevant information needed for decision-making can be produced.

In the Balkans, the main challenge of the region remains the ever-lasting transition towards European standards of democracy, institutional efficiency and a market economy, as well as the gaping need for significant investment in infrastructure and production facilities. Lately, Chinese companies have been increasing their investment and involvement in the region.

The main pull factors in the Balkans are the region’s huge investment needs in infrastructure, re-industrialization and the improvement of public goods and services, exacerbated by the lack of access to the EU Structural Funds. The main economic push factors for China relate to the availability and competitive prices of Chinese technology; the Western Balkans geographical location on the BRI road- and maritime corridors; a decent return on investment (ROI) rate; and the WB access to EU market quotas.

This report is a written version of the contributions made during the international seminar organized by the Cooperation & Development Institute (CDI), in partnership with Hanns Seidel Foundation (HSS) and the Southeast Europe Association (SOG), held under the title “Corporate China in Western Balkans”, on 16-17 May 2019 in Tirana, Albania. The report has been prepared by Ardian Hackaj, Research Director at Cooperation and Development Institute based on seminar notes and recordings, and enriched with additional data provided from the participants after the seminar, and / or references of their previous research and / or publications.

Tags: China, Connectivity, Economy, Transport, Western Balkans