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World / China-Serbia

Relations between Serbia and China are on the best level: ambassador

(chinadaily.com.cn) Updated: 2016-06-16 17:01

Q: You've mentioned in previous interview that now it is a good time for Chinese companies to invest in Serbia. What's the benefit for both countries in this regard?

A: It is vital for Serbia to attract more foreign direct investments and the investors from China are most welcome to come and develop their projects. The economic relations between the two countries should enter into the new phase which will be based not only on the development of the big infrastructure projects, but also on Chinese direct investments.

All products produced in Serbia can be exported customs-free to a market of almost 800 million people that includes the European Union, the Russian Federation, Kazakhstan, Turkey, South East Europe, the European Free Trade Agreement members and Belarus, on the basis of the established free trade agreements. Serbia's tax regime is highly conducive to doing business - the corporate profit tax is among the lowest in Europe, while the Value Added Tax is among the most competitive in Central and Eastern Europe.

Foreign investors are exempt from paying customs duty on imported equipment and machinery which represents the share of a foreign investor in a capital of a company in Serbia and they can also enjoy the benefit of customs free import of raw material and semi-finished goods for export oriented production.

The high-speed railway Belgrade - Budapest project is of great importance for all and the preparatory works are progressing well and in line with the mutually agreed timetable. Chinese company Hesteel has recently privatized the steel plant Zelezara Smederevo and this transaction should noticeably boost the country's economic growth. We expect that the successful development of these projects will attract more Chinese investors and companies to our region.

Q: Given Serbia's unique geographic location, how do you evaluate Serbia's contribution to China's cooperation with Central and Eastern European countries?

A: Apart from extraordinary good bilateral ties between Serbia and China, my country has been developing relations with China through other mechanisms and format as well, including multilateral types.

Serbia attaches great importance to the cooperation within the mechanism of cooperation between China and 16 Central and Eastern European Countries, and it is very active in all fields of cooperation within it. Serbia is fully supportive to the deepening of the cooperation between China and the Central and Eastern European Countries. Belgrade was the host of the Third Meeting of the Heads of Government between China and CEEC in November 2014, and our high level representatives have actively participated in all major events and conferences organized within this mechanism of cooperation.

Chinese companies have been very active in the realization of different big infrastructure projects in Serbia, financed by the favorable loans provided by the Chinese financial institutions, such as construction of the Bridge over the Danube River (the first capital infrastructure project completed by Chinese companies in Europe), high-speed railway Belgrade – Budapest, construction works on the highway E-763 and revitalization of the Power Plant "Kostolac" and we also expect to focus on the projects in the form of public - private partnership and concessions.

The geographic position of Serbia is compatible with the One Belt, One Road strategy and we expect to fully develop the potentials for the construction of the road, railway and inland waterway infrastructure that links the Maritime Silk Road for the 21 Century with the Central Europe through the land-sea express direction. The talks about the water Chanel Danube-Juzna Morava-Vardar, that would connect the network of European waterways with the ports in Greece and Aegean Sea, will be also on the agenda of the meeting of two presidents.

Serbia is also very active in other field of cooperation between China and CEEC. I will just mention that the First Forum on Cultural and Creative Industries between China and CEEC was held in Belgrade on June 5 this year. Furthermore, Serbia will be a guest country at the forthcoming Beijing Book Fair, together with other 15 CEEC. There is a wide range of events and meetings for cooperation in this mechanism in the field of local government’s cooperation, health, education, media, etc.

 

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