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Connectivity-Related Projects in Europe and China. Opportunities

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Connectivity-Related Projects in Europe and China. Opportunities European Institute of Romania Connectivity-Related Projects in Europe and China: Opportunities and Challenges to Increased Synergies AUTHORS: Doru Costea George Cornel Dumitrescu Clara Volintiru Roxana Voicu-Dorobanțu Cătălin Ploae Bucharest August 2019 2 CONNECTIVITY-RELATED PROJECTS IN EUROPE AND CHINA: OPPORTUNITIES AND CHALLENGES TO INCREASED SYNERGIES Project coordinator on behalf of the European Institute of Romania: Mihai Sebe © European Institute of Romania, 2019 7-9 Regina Elisabeta Bld., Sector 3, Bucharest, Romania www.ier.gov.ro ISBN online: 978-606-8202-65-5 Linguistic and scientific revision: Ionuț-Mircea Marcu *The views and opinions expressed in this paper are those of the authors and do not necessarily reflect the official policy or position of their institutions or of the European Institute of Romania. 3 European Institute of Romania CONTENT List of figures ........................................................................................................................ 6 List of tables.......................................................................................................................... 9 List of boxes .......................................................................................................................... 9 List of charts ....................................................................................................................... 10 EXECUTIVE SUMMARY ............................................................................................... 11 CHAPTER I. Policy connectivity ..................................................................................... 14 In guise of introduction .................................................................................................. 14 On the road to connectivity ............................................................................................. 15 Recent steps on the road ................................................................................................. 18 Contents of policy connectivity ....................................................................................... 21 Connectivity formats and initiatives ............................................................................... 22 Policy connectivity of diversities ..................................................................................... 28 Challenges ....................................................................................................................... 30 The road goes ever on and on… ..................................................................................... 32 CHAPTER II. Infrastructure connectivity...................................................................... 33 A brief history of connectivity between East and West along the Silk Road ................ 33 Romania on OBOR`s corridors ...................................................................................... 37 Northern Routes .............................................................................................................. 39 Central Route/s ................................................................................................................ 43 Southern Route ............................................................................................................... 44 General facts and figures ................................................................................................ 48 EU main corridors including Romania.......................................................................... 51 Orient –East..................................................................................................................... 51 Rhine - Danube ............................................................................................................... 52 Conclusions ..................................................................................................................... 64 4 CONNECTIVITY-RELATED PROJECTS IN EUROPE AND CHINA: OPPORTUNITIES AND CHALLENGES TO INCREASED SYNERGIES CHAPTER III. Trade connectivity .................................................................................. 66 Current Status of Economic and Trade Development between China and Central and Eastern Europe ............................................................................................................... 66 Analysis on the Trade Structure, Growth Momentum of Bilateral Trade between China and Central Europe ......................................................................................................... 71 Growth of Imports from China in Selected CEE Countries ......................................... 75 Growth of Exports to China from selected CEE ............................................................ 82 Analysis on the Trade Structure and Trade Elasticity in China and Central Europe . 88 Trade specialization in CEE and China: the role of global value chains .................... 88 Challenges ahead for CEE countries: exchange rates and trade elasticity .................. 91 CHAPTER IV. Financial connectivity ............................................................................. 93 Context ............................................................................................................................. 93 Investment issues. The overall global investment context for China. ........................... 94 Other issues ................................................................................................................... 109 Conclusions ................................................................................................................... 111 CHAPTER V. People to people connectivity ................................................................. 112 Cultural issues ............................................................................................................... 112 Tourism issues ............................................................................................................... 116 Education issues ............................................................................................................ 119 References ......................................................................................................................... 121 5 European Institute of Romania List of figures Figure 1: Yuezhi Warrior ....................................................................................................... 34 Figure 2: Dacian warrior ....................................................................................................... 34 Figure 3: The Silk Road Map ................................................................................................. 36 Figure 4: OBOR`s Main Terrestrial Corridors ..................................................................... 37 Figure 5: The EU TEN -T Corridors including Romania .................................................... 53 Figure 6: Evolution of bilateral trade with China in Selected CEE countries (2013-2017) 73 Figure 7: Value of imports from China in 2017, USD mil. .................................................. 74 Figure 8: Value of exports to China in 2017, USD mil. ........................................................ 74 Figure 9: Romania - Annual growth in the value of imports from China (2013-2017), % . 75 Figure 10: Romania – Value top 10 imports from China in 2017, USD millions ............... 77 Figure 11: Czech Republic- Annual growth in the value of imports from China (2013-2017), % .............................................................................................................................................. 78 Figure 12: Czech Republic – Value top 10 imports from China in 2017, USD millions ..... 78 Figure 13: Bulgaria- Annual growth in the value of imports from China (2013-2017), % 79 Figure 14: Bulgaria – Value top 10 imports from China in 2017, USD millions ................ 79 Figure 15: Hungary- Annual growth in the value of imports from China (2013-2017), % 80 Figure 16: Hungary – Value top 10 imports from China in 2017, USD millions ................ 80 Figure 17: Poland Annual growth in the value of imports from China (2013-2017), % .... 81 Figure 18: Poland – Value top 10 imports from China in 2017, USD millions ................... 81 Figure 19: Romania - Annual growth in the value of exports to China (2013-2017), % .... 82 Figure 20: Romania– Value top 10 exports to China in 2017, USD millions ...................... 82 Figure 21: Czech Republic - Annual growth in the value of exports to China (2013-2017), % .............................................................................................................................................. 83 Figure 22: Czech Republic– Value top 10 imports from China in 2017, USD millions ...... 83 Figure 23: Bulgaria - Annual growth in the value of exports to China (2013-2017), % .... 84 Figure 24: Bulgaria– Value top 10 imports from China in 2017, USD millions ................. 84 Figure 25: Hungary - Annual growth in the value of exports to China (2013-2017), % .... 85 Figure 26: Hungary– Value top 10 imports from China in 2017, USD millions ................. 85 Figure 27: Poland - Annual growth in the value of exports to China (2013-2017), % ....... 86 Figure 28: Poland– Value top 10 imports from China in 2017, USD millions .................... 87 Figure 29: Value-added export RCA in services ..................................................................
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