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PROF. ZHU XIAOZHONG Relations between Sino-CEEC since 1990s

PROF. ZHU XIAOZHONG Relations between Sino- CEEC since 1990s

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PROF. ZHU XIAOZHONG

Relations between Sino-CEEC since 1990s

Two periods of relations between China and CEEC

•1949-1989Socialist time

•1990-post-socialist

time

Socialist era• Learning socialist construction experience

from the Soviet Union and Eastern Europe• Two-way sending students

1949-1960

• Suffered from ideological competition between China and the Soviet Union

• There were no inter-party relationship

1960-1980

• Learning how to carry out reform from Eastern Europe(Hungary, Yugoslavia)

• Restoring trade, cultural and high-level visits

1980-1989

Post-Socialist era

1990-1995: China’s observation and re-adjusting bilateral relations

1995-2003: bilateral relations guided by the Budapest principles

2004-2011: China put forward the Bucharest principles

2012- China's Twelve Measures for Promoting Friendly Cooperation with CEEC

Some new factors influencing bilateral relations ( since 1990)

the Soviet Union disappeared

The Tibet question

Domestic politics of CEEC

China’s re-adjusting

Re-adjusting Chinese approach towards CEEC 1990-1994

• Different system and values couldn’t be the obstacles in the relations between China-CEEC

Chinese opinion

• China respects CEEC people’s choice and develop bilateral relations on the bases of the Five Principles of Peaceful Coexistence

Chinese opinion

Milestones in bilateral relationsbetween China and CEEC

July 1995: The Budapest principles by Jiang Zemin June 2004: The Bucharest principles by Hu JingtaoApril 2012: 12 Measures for Friendly Cooperation with CEEC by Wen Jiabao

Sept 2012: the Secretariat for Cooperation between China and CEEC

The Budapest principles

Respect the CEEC people’s choice1Develop the bilateral relations based on the five principles of peaceful coexistence2There are no fundamental interest conflicts in bilateral relations3

4 China supports peaceful resolution of regional disputes and enhancing regional cooperation

The Bucharest principles1

• To expand common grounds and mutual understanding the other’s interest concern

2 • To increase scale of two-way investments

3• To broaden cooperation in

the fields such as education, tourism, health and media

4• To strengthen the

cooperation in fields of anti-terror, nuclear proliferation, fight against cross-border crime, play the role of the UN

Friendly co-op relations—Hungary

Comprehensive friendly co-op--Romania

Strategic partnership—Serbia

Strategic partnership--Poland

Levels of bilateral relations

Numbers relating to bilateral relations• 37 sister provinces • 58 sister citiesTwo sides

• 58 Confucius Institutes in CEEC( 23)China

• Traveling to China 230 thou.• Chinese tourists in CEEC 73

thou.Two sides

Numbers: Chinese in CEEC

Country number Registered year

Czech Republic 4,500 2007

Romania 2,243 2002

Serbia 5,000 2008

Hungary 8,000-10,000 2011

Bulgaria 8,000-10,000 2005

Poland 5000 2011

Slovakia 5300 2012

Economic relations between Sino-CEEC

Bilateral trade between China and CEEC

• 4.3 bil.$

2001

Total Volume of Trade

520 Bil$

China’s Surplus30.0 Bil.$ China’s

import103 Bil.$

Smallest partenr

B&HBiggest partnerPoland

China’s Export

417 Bil.$

Trade between China and CEEC(2012)

Chinese Investment in CEEC

Central Europe830 mil.

$

Southeast Europe23.5

mil.$

Trend of China’s investment in CEEC

China’s investment in Europe( 2011)

Lux-em-

bourg 27.10%

Russia 17.7%

Germany 9.5%Sweden

9.4%

U.K 8.6%

3.00%

1.40%

CEEC 5.3% France 18%

China’s investment in CEEC(852 Mil.$ to 2010)

CEE 7 816.6 95.8%

Baltic States11.91.3%

Southeast Europe23.9 2.8%

China’s investment in Central Europe( 816.6 Mil.$)

Bugaria18.2

Czech Republic52.3

Hungary465.7

Poland140.3

Romania124.9

Slovakia9.8

Slovenia5

China’s investment in Southeast Europe ( 23.9Mil.$)

Montenegro0.32

Bosnia 5.98

Macedonia0.2

Croatia8.13

Albania4.43

Serbia4.84

China’s investment allocation in CEEC

Leasing and Commecial service44%

Finance 15%

Wholesale & re-tail 10%

Transo-

port & lo-gis-tics 9%

Manufac-tor-ing&

Con-structure 9%

Min-ing and re-

sources 9%

Other 4%

Measures aimed at approving economy and trade relations

China’s measures• ministry of commerce issued list of

investment for processing trade for household appliance

Guide for investment

Jan.2010

• the Central Europe Economic Forum in Hungary

Economic Forum25 June 2011

• the Central Europe Economic Forum in Warsaw

Economic Forum27 April 2012

China’s mesures

EconomicForum

BudapestJune 2011

WarsawApril 2012Bucharest

Nov.2013

Chiina’s Twelve measure in 2012

Secretariat

Student exchange

Trade Credit line

Forums

Researchfund

1/ Secretariat & research fund A secretariat for co-op between China and CEEC. It based in China's MFA, and charged with communication and coordination on matters related to cooperation. CEEC will, in the principle of voluntarism, each designate a counterpart department and a coordinator to take part in the work of the secretariat

Research fund on relations between China and CEEC. China is ready to provide RMB2 million yuan every year to support academic exchanges between research institutes and scholars of the two sides.

2/ Finance initiatives from ChinaA US$10 billion special credit line, a certain proportion of which will be concessional loans, with a focus on cooperation projects in fields of infrastructure, high and new technologies, and green economy. CEEC may file project application to six Chinese Banks

investment cooperation fund US$500 mil. in the first stage

3/Industrial Parks & promoting tradeChina encourages Chinese enterprises to cooperate with relevant countries to establish one economic and technological zone in each country in the next five yearsChina sends trade and investment promotion missions to CEEC and take measures to move forward bilateral economic cooperation and trade. China hopes to increase total two-way trade to 100 bil.US$ by 2015

4/ Establish an expert advisory committee & Tourism promotion allianceEstablish an expert advisory

committee on the construction of transportation network between China and CEEC, to explore the building of regional highway or railway demonstration networks through joint venture, joint contracting Establish a tourism promotion alliance between China and CEEC, and explore the possibility of opening more direct flights between China and CEEC

5/ Forums in China in 2013

Cultural

Cooperation

Young

Politicia

n

Educational

policy

6/ In coming 5 years China will…Send1000Chinese to CEEC

Invite 1000p to China to study Chinese

Provide 500

0Scholarshipsto

CEEC stu

dents

Six-point proposal by Li Keqiang in 2013

• First, China and CEE countries should intensify economic and trade cooperation, doubling China-CEE trade volume in five years and discussing a framework agreement for industrial investment in the near future.

Six-point proposal by Li Keqiang in 2013

• Second, China and CEE countries should promote cooperation on transportation infrastructure to open up interconnected land and sea channels between China and Europe. China and CEE nations will also build a transport "artery" for China-Europe logistics by setting up bonded areas and distribution centers along railways and ports.

Six-point proposal by Li Keqiang in 2013

• Third, China and CEE nations should enhance "green cooperation." China backs its enterprises to participate in the CEE nuclear electricity projects and hopes that the host countries would improve investment environment.

Six-point proposal by Li Keqiang in 2013

• Fourth, China and CEE countries should expand financing channels. They need to make good use of the 10-billion-U.S.-dollar special credit line and enhance financial cooperation by setting up branches of financial institutions branches in each other's markets, signing currency swap and settlement agreements.

Six-point proposal by Li Keqiang in 2013

• Fifth, China and CEE countries should further tap into potentials of cooperation at local levels to efficiently and effectively promote their cooperation.

Six-point proposal by Li Keqiang in 2013

• Sixth, China and CEE countries should enhance cultural exchanges by holding regular forums on culture and education, strengthening communication between young politicians, think-tanks and media as well as facilitating procedures for travel and work visa.

CEEC’s measures• “CEEC investment day”was held by

CEE during ChinaExpo, advertise enviroment for investor, CEEC’s main industries

26 July 2010

• Forum on China’s investment was held by Czech ministry of industry and trade, Czech ministry of Foreign Affairs and Slovak ministry of economy in Czech Republic. About 150 persons, including businessman and experts, who came from Czech Republic, Slovakia, the EU and China

8-11 Nov.2010

• the Polish Ministry of Economy launched a strategy called “Go China”. It’s aim at encouraging Polish entrepreneurs to cooperate with Chinese business partners.

12 March 2012

Discussion

Characteristics of Sino-CEEC (1)The base of bilateral Relations between Sino-CEEC changed from Ideology-driven to Interest-drivenChina’s understanding of CEEC is deepening: from the Budapest principles to the Bucharest onesWeakening of “traditional friendly relations” between China and CEEC

Asemmentr

y

Strategic

needs

Economic

relations

Characteristics of Sino-CEEC (2)

The Challenges facing China in bilateral relations

How to understand CEEC( region, group and individual country)

Dualism of bilateral relations (bilateral and multiple)

How to develop bilateral relations in context of divergence in value, asymmetry in economic relations

The Challenges facing CEEC in bilateral relations

Don’t understand about China

How to understand and deal with arising ChinaHow to develop relations with China within the EU’s Framework policyHow to develop bilateral relations in context of divergence in value and asymmetry in economic relations

1.Why China invest in CEEC

Going out

Latin Americ

a

Asia

CEEC

Africa

1.Why China invests in CEEC

to improve the size and quality of China-Europe cooperation

To benefit the development of China-Europe relations in a more comprehensive and balanced manner

To help Europe to overcome the current difficulties

to play a constructive role in China-EU relations

Improving China-EU relations

1.Why China invest in CEEC

One country alone can block a decision that give CEEC increase leverage

China seeks to capitalize on

EU’s STRUCTURE Of DECISION

1.Why China invests in CEEC

American pivot in Asia

China has to look for new

alliance to prevent itself

from an isolated in

Asia

2.What comments from……

The EU

CEEC

China