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THE REVIEW I OF INTERNATIONAL R A AFFAIRS BELGRADE, VOL. LXVII, No. 1161, JANUARY–MARCH 2016 Thematic Issue: CHINESE SILK ROAD AND CONTEMORARY RELATIONS OF CHINA AND CENTRAL AND EASTERN EUROPEAN COUNTRIES (CEEC) INTERNATIONAL RELATIONS Aleksandar JANKOVIĆ NEW SILK ROAD – NEW GROWTH ENGINE Duško DIMITRIJEVIĆ, CHINA’S “NEW SILK ROAD” DEVELOPMENT STRATEGY Nikola JOKANOVIĆ Marko NIKOLIĆ CENTRAL-EASTERN EUROPEAN COUNTRIES’ (CEEC) AND SERBIA’S PERSPECTIVE AND POSITION TOWARDS CHINESE “ONE BELT, ONE ROAD INITIATIVE―A GEO-POLITICAL OVERVIEW Ivona LAĐEVAC, POSSIBILITIES FOR PROMOTING INTERCONNECTIVITY BETWEEN Branislav ĐORĐEVIĆ CHINA AND CENTRAL AND EASTERN EUROPEAN COUNTRIES INTERNATIONAL ECONOMICS Nikola STAKIĆ, Kata- CHALLENGES OF BUSINESS AND FINANCIAL TRANSFORMATION rina ZAKIĆ OF CHINA IN NEW NORMAL ECONOMY Pero PETROVIĆ, ECONOMY OF CHINA AND THE GLOBAL FINANCIAL RELATIONS Milenko DŽELETOVIĆ Miroslav ANTEVSKI, CHINESE RESPONSE TO TRANSATLANTIC TRADE AND INVESTMENT Sanja JELISAVAC TROŠIĆ PARTNERSHIP AND TRANS PACIFIC PARTNERSHIP Natasa STANOJEVIĆ THE NEW SILK ROAD AND RUSSIAN INTERESTS IN CENTRAL ASIA Gongpil CHOI THE CHINA’S SHADOW BANKING: ISSUES AND POLICY RESEPONES THE INSTITUTE OF INTERNATIONAL POLITICS AND ECONOMICS The Review of International Affairs ISSN 0486-6096 UDK 327 VOL. LXVII, No. 1161, JANUARY–MARCH 2016 Publisher Institute of International Politics and Economics, Belgrade, Makedonska 25 For the Publisher Branislav ĐORĐEVIĆ, Ph.D. Director Editor-in-Chief Marko NIKOLIĆ, Ph.D. Deputy Editor-in-Chief Sanja JELISAVAC TROŠIĆ, Ph.D. Secretary Jelica GORDANIĆ, M.A. Editorial Council Oliver ANTIĆ, Professor, Faculty of Law, Belgrade, Serbia (President) Yuan ZHENGQUING, Ph.D., editor-in-chief of Journal China and World Economy, Institute of WorldEconomics and Politics, Chinese Academy of Social Sciences, Beijing, China Vladimir DMITRIEVICH KUZNICHEVSKI, Ph.D., Russian Institute for Strategic Research, Moscow, Russia Jouni JARVINEN, Ph.D., Aleksanteri Institute, Helsinki, Finland Stefano PILOTTO, Professor, Faculty of Political Sciences, Trieste, Italy Armand CLESSE, Ph.D., Director, Luxembourg Institute for European and International Studies, Luxemburg Satoru MATSUDA, Professor, Kyoto Gakuen University, Kyoto, Japan Sergiu MISCOIU, Ph.D., editor-in-chief of Journal StudiaEuropaea, European University, Cluj, Romania Camelia RATIU, Ph.D., European Commission, EU funds for Germany, Brussels, Belgium Edislav MANETOVIĆ, Professor, Whitehead School of Diplomacy and International Relations, Seton Hall University, USA Laurence WEINBAUM, Ph.D., Director-General, editor-in-chief of Israel Journal of Foreign Affairs,Israel Council on Foreign Relations, Jerusalem, Israel Vojislav STANOVČIĆ, Academician, Serbian Academy of Sciences and Arts (SASA), Belgrade, Serbia Darko TANASKOVIĆ, Professor, Faculty of Philology, Belgrade, Serbia Dragan SIMEUNOVIĆ, Professor, Faculty of Political Sciences, Belgrade, Serbia Dragan SIMIĆ, Professor, Faculty of Political Sciences, Belgrade, Serbia Ljubiša ADAMOVIĆ, Professor, European University for Peace and Developement, Belgrade, Serbia The Review of International Affairs Dragana GNJATOVIĆ, Professor, Faculty of Economy, Kragujevac, Serbia Duško LOPANDIĆ, Ph.D., Ambassador, Ministry of Foreign Affairs, Serbia Božin NIKOLIĆ, Ambassador, Ministry of Foreign Affairs, Belgrade, Serbia Yuayan G. H. MULYANA, PhD, Assistant Special Staff, Office of Special Staff to the President of Indonesia Professor Dragoljub TODIĆ, IIPE, Belgrade, Serbia Professor Saša MIJALKOVIĆ, Academy of Criminalistic and Police Studies, Belgrade, Serbia Editorial Board Vladimir GREČIĆ, Professor, IIPE, Belgrade, Serbia Slobodan PAJOVIĆ, Professor, Megatrend University, Belgrade, Serbia Vladimir PRVULOVIĆ, Professor, Megatrend University, Belgrade, Serbia Vladimir GRBIĆ, Professor, Faculty for International Economy, Belgrade, Serbia Milomir STEPIĆ, Professor, Institut for Political Studies, Belgrade, Serbia Predrag BJELIĆ, Professor, Faculty of Economy, Belgrade, Serbia Miroslav MLADENOVIĆ, Professor, Faculty of Security Studies, Belgrade, Serbia Bojan MILISAVLJEVIĆ, Ph.D., Faculty of Law, Belgrade, Serbia Darko TRIFUNOVIĆ. Ph.D., Faculty of Security Studies, Belgrade, Serbia Goran NIKOLIĆ, Ph.D., Institute for European Studies, Belgrade, Serbia Duško DIMITRIJEVIĆ, Ph.D., IIPE, Belgrade, Serbia Mina ZIROJEVIĆ-FATIĆ, Ph.D., Institute for Comparative Law, Belgrade, Serbia Marko NOVAKOVIĆ, M.A., IIPE, Belgrade, Serbia Layout Sanja BALOVIĆ Language editor Maja NIKOLIĆ For information on annual subscription please contact BiFS doo, Books and Periodicals, Supilova 10 11000 Belgrade, Serbia, Tel/fax: +381 11 20 84 229 E-mail: [email protected] Printed by Mala knjiga+, Novi Sad Distribution 300 copies Publishing of The Review of International Affairs is funded by the Ministry of Education, Science and Tehnological Development of the Republic of Serbia The Review of International Affairs Vol. LXVII, No. 1161, January–March 2016 UDK 327 ISSN 0486-6096 Contents International Relations Aleksandar JANKOVIĆ NEW SILK ROAD – NEW GROWTH ENGINE .................................................. 5 Duško DIMITRIJEVIĆ, Nikola JOKANOVIĆ CHINA’S “NEW SILK ROAD” DEVELOPMENT STRATEGY ....................... 21 Marko NIKOLIĆ CENTRAL-EASTERN EUROPEAN COUNTRIES’ (CEEC) AND SERBIA’S PERSPECTIVE AND POSITION TOWARDS CHINESE “ONE BELT, ONE ROAD” INITIATIVE―A GEO-POLITICAL OVERVIEW .................................................. 45 Ivona LAĐEVAC, Branislav ĐORĐEVIĆ POSSIBILITIES FOR PROMOTING INTERCONNECTIVITY BETWEEN CHINA AND CENTRAL AND EASTERN EUROPEAN COUNTRIES ........................................................... 65 International Economics Nikola STAKIĆ, Katarina ZAKIĆ CHALLENGES OF BUSINESS AND FINANCIAL TRANSFORMATION OF CHINA IN NEW NORMAL ECONOMY ............ 80 Pero PETROVIĆ, Milenko DŽELETOVIĆ ECONOMY OF CHINA AND GLOBAL FINANCIAL RELATIONS ........................................................................................... 101 4 The Review of International Affairs, Vol. LXVII, No. 1161, January–March 2016 Miroslav ANTEVSKI, Sanja JELISAVAC TROŠIĆ CHINESE RESPONSE TO TRANSATLANTIC TRADE AND INVESTMENT PARTNERSHIP AND TRANS PACIFIC PARTNERSHIP ............................................................................................................... 123 Natasa STANOJEVIĆ THE NEW SILK ROAD AND RUSSIAN INTERESTS IN CENTRAL ASIA ...................................................................................................... 142 Gongpil CHOI THE CHINA’S SHADOW BANKING: ISSUES AND POLICY RESEPONES ....................................................................... 162 Book Reviews Borislav KORKODELOVIĆ, SERBIA ON THE SILK ROAD .................................. 193 Documentation VISION AND ACTIONS ON JOINTLY BUILDING SILK ROAD ECONOMIC BELT AND 21ST-CENTURY MARITIME SILK ROAD ............. 197 INTERNATIONAL RELATIONS UDC 339.9(510) 338.2(510) Biblid 0543-3657, 67 (2016) Vol. LXVII, No. 1161, pp. 5–20 Original Scientific Paper NEW SILK ROAD – NEW GROWTH ENGINE Aleksandar JANKOVIĆ1 Abstract: New Silk Road is the strategic initiative that encompasses the construction of the Silk Road Economic Belt and the 21st Century Maritime Silk Road. It is commonly abbreviated as the Belt and Road. The main objective of the Belt and Road Initiative is to ensurestable and more balanced economic growth in China, as well as strengthening economic and transport connections with neighbours in Central Asia, with Europe, South Asia, Southeast Asia, and Africa. China is the initiator and leader of connection and cooperation within the Belt and Road. However, the initiative represents a development opportunity not just for China,but also for over 60 countries that are lined along the new Silk Road. One of these countries is Serbia, whose position on the New Silk Road is determined by many factors. Key words: New Silk Road, Belt and Road Initiative, China, Serbia, economic growth. NEW SILK ROAD – NEW GROWTH ENGINE New Silk Road encompasses two strategic initiatives from November 2013 aimed at ensuring stable and more balanced economic growth in China, as well as strengthening China’s economic and transport connections with its neighbours in Central Asia, as well as with Europe, South Asia, Southeast Asia, and Africa. One part of this concept, commonly referred to in Chinese as Yi Dai Yi Lu (“Belt and Road”),envisages the construction of the Silk Road Economic Belt, and the other - 1 Aleksandar Janković, Head of Asia, Australia, and Pacific Department at the Ministry of Foreign Affairs of the Republic of Serbia. This research paper reflects exclusively personal views and opinions of the author. 6 The Review of International Affairs, Vol. LXVII, No. 1161, January–March 2016 the establishment of the 21st Century Maritime Silk Road. Although it is referred to as the Belt and Road, the concept does not envisage the construction of one specific road or belt. Instead, it actually involves the construction of the entire network of transport and energy links in the vast area connecting the Far East and Europe. The concept’s precursor is the ancient Silk Road – a set of trade routes which, at the time, linked across the Central Asia two leading civilizations and economies in the world - China and Europe. The corridor was symbolically named the Silk Road. Today, the main idea is to connect highly developed European countries with the emerging economies of China and other Asian countries. On its economic part, the Belt and Road initiative aims at the development