Upward trend in relations between Serbia and China - Focus of strategic partnership on improvement of economic cooperation

China is the most significant economic partner of Serbia in Asia and the overall bilateral relations between the two countries have been raised to the highest level through establishment of a strategic partnership, President of the Serbian Chamber of Commerce (SCC) Milos Bugarin assessed.

He said at the opening of Serbia-China Business Forum that one of important segments of the strategic partnership was the improvement of economic cooperation in the fields of energy, information technologies, industrial production, agriculture, and food industry.

Bugarin expressed the expectation that mutual contacts of Serbian and Chinese businessmen would result in new business arrangements to a mutual benefit and satisfaction.

The president of SCC also said that Serbia was gradually coming out of recession and that the economic growth was slowly increasing. He reminded that GDP growth in 2010 had amounted to 1.8%, while the export had grown by 17.4 percent against 2009.

However, he stressed that even quicker economic development was necessary in order for Serbia to reach the level of developed countries.

He stated that the foreign trade exchange between Serbia and China was on upward trend, with a huge deficit on the Serbian side.

Last year, the foreign trade exchange between Serbia and China amounted to EUR 1.3 billion, while its value in the first four months of this year reached EUR 512 million.

Bugarin pointed out that Serbia had large infrastructure investments in the plan for the following period and that the priorities were investments in road and railway infrastructure, aimed at enabling as quality transport and goods as possible.

Bugarin presented investment opportunities and the advantages of investing in Serbia to the Chinese delegation, consisting of 120 members from 55 companies.

He said that foreign investors in Serbia enjoyed the national treatment and that the Government of Serbia offered and guaranteed special incentives and initiatives to investors from abroad.

He pointed out that Serbia had six free zones at the moment and that another three should be opened soon - in Nis, Smederevo, and Uzice.

According to his words, these agreements have contributed to better flow of goods and provided access to a large number of consumers.

He introduced the Chinese businessmen to the new model of Serbia's economic development until 2020, of which basic characteristics are: export-oriented investments in economy and infrastructure, public sector reform, improvement of agricultural development, formation of a national development bank, equal regional development, and development of free zones.

China is the most important foreign trade and financial partner of Serbia in Asia for a long time.

Unlike traditionally good political relations, based on the principles of mutual understanding and respect, economic cooperation has not been developing in accordance with the real potentials, reads the statement issued by SCC.

The most significant form of economic cooperation between the two countries is the exchange of goods, while China's investments in Serbia are on a very low level.

The exchange of goods has been constantly growing over the last eight years, but Serbia's big deficit may be a limiting factor in the future economic cooperation, SCC wrote in a statement.

In 2010, China ranked fourth on the list of Serbia's most important foreign trade partners, right behind Germany, Russian Federation, and Italy.

During last year, Serbia's export to China was worth as little as USD 4 million, while the value of goods imported from that country to Serbia amounted to USD 1.31 billion.

In the first four months of this year, Serbia's export amounted to USD 600,000, while the import from China was worth USD 511.5 million.