Trade exchange with China in the first half of this year reached 1.46 billion dollars, 9.2 percent more than last year

As geopolitical positions are reshuffled and (not only) customs relations between China, the USA, and the European Union are tightening, China is moving forward. In the year marking 75 years of the People’s Republic, a communist regime but with a capitalist mentality (state-owned, of course), its ‘Belt and Road’ initiative, which aims to globally intertwine in all aspects of life, has entered its second decade of existence. Europe is fully immersed in trade exchange with China, which is even more important to it than the USA (although, after customs frictions, the numbers are shrinking), but China cannot do without the European/western market either. Although it is vigorously expanding cooperation with Africa and South America, the purchasing power of those residents is hard to compare with western orders, so it is no surprise that the 75th year was celebrated in Zagreb as well. After all, Croatia is an important window into the EU.

– Since the establishment of the People’s Republic of China until 2023, the available income per capita has increased 789 times, and more than 800 million people have been lifted out of poverty, creating the largest global middle-income group with more than 400 million people. In the first half of this year, the Chinese economy maintained a growth rate of five percent and contributed more than 30 percent to the overall global economic growth. The Chinese industry has transformed into a new and green industry, with installed capacities for wind power plants, installed photovoltaic energy production capacity, and production of new energy vehicles being at the top in the world for many years. At the same time, China, like many other countries, is currently facing negative impacts from the internal and external environment, including issues of weak consumption and an aging population.

In July of this year, under the leadership of General Secretary Xi Jinping, the Third Plenary Session of the 20th Central Committee of the Communist Party of China was held, where a decision was discussed and adopted to further comprehensively deepen reforms and promote modernization in a Chinese style. Among other things, it proposes the introduction of more than 300 important reform measures to provide a strong impetus and institutional guarantee for the modernization of the economic system. This is a key point, and it is proposed to properly address the fundamental issue of the relationship between the government and the market and to build a socialist market economic system, which includes, for example, promoting the development of state-owned enterprises and private economy, strengthening fair competition, and promoting high-quality economic development. All regions are focused on developing new drivers of economic growth, including the development of new energy, artificial intelligence, quantum technology, and biomedicine. All of this is a solid guarantee for China’s development, but also for the growth of confidence in global development, with more opportunities for the development of all countries and ensuring a larger market for all countries. China will adhere to the path of peaceful development, adhere to the basic national policy of opening up to the world, promote high-quality joint construction of the ‘Belt and Road’, proactively align with high standards of economic and trade rules, continue to open the domestic market to foreign investments, and guarantee national treatment and protect the legitimate rights and interests of foreign investments – said the Chinese ambassador to Croatia Qi Qianjin at the reception.

He added that it has been 32 years since the establishment of diplomatic relations between China and Croatia, and the relationship between the two countries is in its golden years. China has always regarded Croatia as a good friend and equal partner, and the relationship between the two countries has become a model of friendship and cooperation between countries of different sizes, populations, and social systems.

– Economic and trade cooperation has expanded to a new breadth. Last year, trade exchange between the two countries exceeded 2.5 billion dollars, which is a growth of 5.2 percent compared to the previous year; in the first half of this year, it reached 1.46 billion, which is even 9.2 percent more. The Pelješac Bridge, the brightest pearl in the crown of Chinese-Croatian relations, continues to shine. In the two years since the bridge was opened to traffic, about 5 million vehicles have passed over it, greatly enhancing local economic and social development. The Senj wind farm, Huawei, and Xiaomi have achieved good results, and the road connection project of Vučevice has been successfully put into operation. Contracts for the export of Croatian high-quality agricultural and food products such as honey and tuna to China are expected to be concluded. The number of Chinese tourists visiting Croatia is steadily increasing. The fifth joint Chinese-Croatian police patrol has been successfully completed, which has effectively improved the experience of tourists from various countries – he concluded, believing that all this is enough to cement good relations in the future. The conclusion is partly drawn from the fact that, along with numerous high guests, the ceremony was witnessed by the Vice President of the Croatian Parliament Željko Reiner.

However, there is no doubt that Chinese diplomats are well aware that Croatia will follow decisions from the top of the EU, and the customs wars indicate the future direction. Croatian companies doing business with China will have to fend for themselves in that war.