The Belt and the Road (BRI), the modern name of the old Silk Road, is a Chinese initiative connecting China to Europe. It is composed by a mostly rail connection that goes through Asia, and a sea link that connects China ports to Pakistan, India, Africa and then through the Suez canal enters the Mediterranean Sea (its main landing station is not far away from Albania, in the Piraeus port).

This initiative aims to promote connectivity and economic cooperation amongst China and the countries that it goes through. Moreover the Belt and the Road supports the coordination of policies of the impacted sectors, increases the financial exchanges and puts a special attention to the people relations.

Europe is the terminus of this initiative and as such it plays a strategic role. For China, Europe is the most important trade partner, the main source of foreign investments, a key supporter of the Chinese economy and the focus of the BRI. This initiative aims to create stronger ties amongst those two old civilizations and markets, and to increase the concrete collaboration amongst China and Europe.

The book we are posting today, is authored by Professor Liu Zuoikoi, Director of the China – CEEC Think Tanks Exchange and Cooperation Network Office, at the Chinese Academy of Social Sciences. This publication has been presented in Beijing on 30 June 2017. The book provides an comprehensive and innovative analysis of technical and political factors, the perception of the European elites on the this initiative, presents the challenges and the related risks, and end providing recommendations on the public policies and necessary measures to maximize the benefits for all the partners.

In the presentation event of the book, together with research institutions and scholars from CEEC and WB6, was invited also Cooperation & Development Institute. CDI moderated the panel “The Belt & Road and 16+1 Cooperation Initiative: Risks, Challenges and Potential Scenarios”.

CDI assesses that BRI is a key factor that impacts the connectivity amongst WB6 countries as well as the connectivity amongst the WB6 region and the EU. In this optic, and thanking Professor Liu for his kind permission to publish the book, CDI offers to the interested stakeholders in Albania and to its partners involved in WB6 regional cooperation, this very relevant analysis coming from the most eminent Chinese researcher of the 16+1 cooperation initiative, and of BRI. Only a very few days before the Trieste Summit, this analysis will offer to the readers the point of view of research colleagues and scholars from China on regional cooperation, on connectivity, and on their impact on the economic growth and prosperity of participating countries.

“Europe and the “Belt and Road” Initiative: Responses and Risks”
Author: Liu Zuokui, China – CEEC Think Tank Book Series, Ed. China Social Sciences Press, Beijing 2017.

31 October 2017

Belt and Road Initiative (BRI) is perceived as the major strategic initiative coming from China combining mercantile, economic, infrastructure and people-to-people components around major transport routes that connect China and Europe. At maturity, investment in the Belt and Road is expected to reach $4 trillion. 16+1 Cooperation Initiative appears as an intensification of BRI focused in a delimited geographical space and possessing a more coherent governance architecture. Here the people-to-people component of the BRI becomes visible, through the attention that non-mercantile activities such as cooperation of local government units, health, research, art & culture are promoted.

OBOR and 16+1 CI have significantly contributed to the intensification of bilateral relations. In 2016 China comes third in the volume of exchanges with Albania (with 7.1% of the total after Italy & Germany), up from the fifth place in 2012. The weight of imports from China has continued to grow over the last five years, reaching 8.8% in 2016 from 6.4% of total imports in 2012.

By January 2017, 103 Chinese-owned companies were active in Albania, focused in Tirana, Durres, Elbasan and Berat. The biggest Chinese investments however have been carried on through indirect acquisition of shares from non-Albanian owners: China Everbright Limited acquired 100% of the shares of the Tirana International Airport from a German owned company, and Geo Jade acquired management rights for the largest oil field in Albania from a Canadian company. Under the 16+1 initiative, the number of Albanian researchers, academicians and students visiting China is increased steadily. Albanian – Chinese cooperation is attracting more and more attention from stakeholders in both countries.

Based on its research on connectivity platforms and the Berlin Process, Cooperation & Development Institute is starting a cycle of events on Albania and Eastern Connectivity. The goal of the current roundtable is to contribute to an informed thematic discussion and to the enhancement of the cooperation dynamics between Albania and China. On the eve of the 16+1 Budapest Summit, this roundtable will increase the visibility of BRI and 16+1 Cooperation Initiative in Albania, enrich the discussion amongst Albanian and Chinese partners on projects of common interest, as well as bring on and discuss about challenges and eventual improvements of joint initiatives.

The participation of a mix of central and local government officials, government agencies, Chinese specialists, academicians, researchers and other think tanks, will create a dynamic context propice to efficient communication and fruitful exchange. Professor Liu Zuokui, Director of the China – CEEC Think Tanks Exchange and Cooperation Network Office, at the Chinese Academy of Social Sciences will also address the event, and will present main findings of his last research on: Europe and the “Belt and Road Initiative”: Responses and Risks.

The roundtable is organized by CDI in partnership with the Embassy of People’s Republic of China to Albania, the China – CEEC Think Tanks Exchange and Cooperation Network Office, and with Albanian Ministry for Europe and Foreign Affairs (or National Coordinator of 16+1 Cooperation Initiative).

Agenda

15 November 2017

The Balkan Silk Road – New Perspectives for the Western Balkans as China and the European Union connect in South Eastern Europe

A seminar of the Reflection Forum “The Western Balkans in the European Union”

Wednesday, 15 November 2017, 09h00-12h45 – Venue: Permanent Representation of Austria to the EU, Avenue de Cortenbergh 30, 1000 Brussels

The German Institute for International and Security Affairs – Stiftung Wissenschaft und Politik (SWP), the Austro-French Centre for Raprochement in Europe (ÖFZ/CFA), the Institutfrançais des relations internationales (ifri), the Cooperation & Development Institute (CDI) and the Centre international de formation européenne (CIFE) organize an expert seminar on the Western Balkan development perspectives and the role of China.

Through its 16+1 Framework and its multi-billion fund set up to finance large infrastructure projects and bilateral trade as well as the Belt and Road Initiative, China has entered the economic and political stage in South Eastern Europe. Although Chinese investments are often directed towards projects included in the EU’s Connectivity Agenda for the region, their modalities differ from EU standards and practices. However, for a region struggling to attract European and other foreign direct investments (FDI), these Chinese offers may represent an alternative to the EU’s development policy scheme.
Keeping this in mind, what are the geopolitical and geo-economic implications of China’s growing presence in the Western Balkans? How do they influence the Berlin Process for the Western Balkans? The seminar will reflect and discuss these issues and questions, bringing together experts from South Eastern Europe, China, Brussels and European Union institutions.

The debate will be held in English and under the Chatham House Rule*.

 Programme

8:30 h Registration, Coffee and Kipferl

9:00 h Opening

• Alexander KMENTT, Ambassador, Permanent Representative to the Political and Security Committee, Permanent Representation of Austria to the European Union, Brussels
• Dominique DAVID, President, Austro-French Centre for Rapprochement in Europe and advisor to the President of the French Institute of International Relations (ifri), Paris

9:10 h Setting the scene – South Eastern Europe, China and the EU

• LIU Zuokui, Director, Department of Central and Eastern European Studies, Institute of European Studies, Chinese Academy of Social Sciences; Director, Office of Secretariat of China – CEEC Think Tanks Network, Beijing
  Discussants:
• Gudrun WACKER, Senior Fellow, Research Division Asia, German Institute for International and Security Affairs (SWP), Berlin
• Nicolas CENDROWICZ, Directorate-General for Neighbourhood and Enlargement Negotiations (DG NEAR), Deputy Head of Balkans Regional Cooperation, European Commission, Brussels

10:10 h Coffee and networking break

10:30 h Views from South-Eastern Europe: China’s engagement in the region

• Jens BASTIAN, Independent Financial Sector Analyst & Economic Consultant, Athens
• Dragana MITROVIC, Professor of Political Sciences, University of Belgrade, Executive Director of the Centre of Asian and Far Eastern Studies, Belgrade
• Ardian HACKAJ, ShtetiWeb Director, Cooperation & Development Institute (CDI), Tirana
• Zoran NECHEV, European Union Insitute for Security Studies (EUISS), Paris and Center for EU Integration at the Institute for Democracy ‘SocietasCivilis’, Skopje (tbc)
  Moderation: Tobias FLESSENKEMPER, Senior Fellow and Project Balkans Project Director, Centre international de formation européenne (CIFE), Nice

11:30 h Break

11:45 h EU’s connectivity agenda and the Berlin Process: The impact of China’s engagement in South-Eastern Europe

• MEN Jing, Professor of European Union-China Relations; Director of the EU-China Research Centre, College of Europe, Bruges
• George TZOGOPOULOUS, Research Fellow, Hellenic Foundation for European & Foreign Policy (ELIAMEP) and Centre international de formation européenne (CIFE), Athens and Nice
• Agatha KRATZ, Associate Fellow, European Council on Foreign Relations, London
  Moderation: Dušan RELJIC, Head of Brussels Office, German Institute for International and Security Affairs (SWP), Brussels

12:45 h Conclusion of the seminar

 Participation upon invitation only

SWP Stiftung Wissenschaft und Politik – German Institute for International and Security Affairs

Brussels Office – Boulevard Saint-Michel 80 – B-1040 Brussels brussels@swp-berlin.org – Tel. 02 742 97 25

*As the Chatham House Rule applies, participants are free to use the information received, but neither the identity nor the affiliation of the speaker(s), nor that of any other participant, may be revealed. As a matter of confidentiality, photographs, video or audio recordings as well as all kinds of activities on social media are not allowed during our meetings.

A two-day seminar “Corporate China in Western Balkans” was organized by Cooperation and Development Institute in partnership with Hanns-Seidel-Stiftung and Südosteuropa-Gesellschaft e.V. gathered in Tirana high level experts, researchers and practitioners from EU, Western Balkans and China. The event offered for the first time a multidimensional view of Chinese investments in the region.

The main conclusions included better project identification, clearer rules of engagement, regional coordination approach, exchange of experiences amongst Balkan countries, strengthening of WB6 institutional capacities, participation in “3rd Party Market Cooperation” mechanisms, more and better communication, and greater attention to the language and discourse of each partner.
While China’s is filling an investment gap in the Balkans contributing to local growth and employment, WB6 actors should possess a clear blueprint of their investment needs, a realistic assessment of their institutional capacities, and improve their regional cooperation.
EU should include the region in its EU-China Strategy.
A win-win-win approach requires intense communication, regular and structured exchanges, and empathy.
The debates were held under Chatham House rules.

A paper containing the contribution of participants and more detailed conclusions will be produced and published later on.

Consult the seminar agenda here.

The Pragmatic Engagement of China in the Western Balkans.