XXIII (78 Special Issue) - 2017 ISSN 1848-5782
State, Market and Infrastructure: The New Silk Road / Peter Nolan
China-CEEC Cooperation: China’s Building of a New Type of International Relations / Liu Zuokui
INSTITUTE FOR DEVELOPMENT AND INTERNATIONAL RELATIONS INSTITUTE FOR DEVELOPMENT AND INTERNATIONAL Towards a Balanced Synergy of Visions and Interests: Latvia’s Perspectives in 16+1 and Belt and Road Initiatives / Andris Spruds
China’s Belt and Road Initiative Extension to Central and Eastern European Countries - Sixteen Nations, Five Summits, Many Challenges / Marsela Musabelliu
The Baltic Sea Macro-Regional Transport Cluster as an Element of the Silk Road Economic Belt / Olga Nežerenko, Ott Koppel
Using Patent Development, Education Policy and Research and Development Expenditure Policy to Increase Technological Competitiveness of Small European Union Member States / Simona Ferraro, Pawan Kumar Dutt and Tanel Kerikmäe
The Security Challenges of the “One Belt, One Road” Initiative and China’s Choices / Liu Haiquan
The Challenge of Different Perceptions on the Belt and Road Initiative / Ma Junchi
SWOT Analysis and Related Countermeasures for Croatia to Explore the Chinese Tourist Source Market / Wang Qian
ResearchGate Scientific Indexing Services (SIS) SCImago (SJR) SCOPUS – Elsevier Summon (Serials Solutions/ProQuest) TDOne (TDNet) WanFang Data WorldCat (OCLC) Professor, Jean Monet Chair in Political Science, Professor, Jean Monet Chair in Political Science, University of Cologne Hrčak (Portal of scientific journals of Croatia) International Political Science Abstracts (IPSA) J-Gate Journal TOCs KESLI-NDSL (Korean National Discovery for Science Leaders) Naviga (Softweco) Primo Central (ExLibris) ProQuest – PAIS International ProQuest – Social Services Abstracts ProQuest – Worldwide Political Science Abstracts (WPSA) Public Affairs Information Service PAIS ReadCube Research Papers in Economics (RePEc) Helen O’Neill Professor, Center for Development Studies, University College Dublin Jadranka Stojanovski Assistant Professor, Department of Information Sciences, University of Zadar and Ruđer Bošković Institute Milica Uvalić Professor, School of Political Science, University of Perugia Werner Weidenfeld Director, Center for Applied Policy Research, Ludwig Maximilian University, Munich Wolfgang Wessels Ognyan Minchev Director, Institute for Regional and International Studies, Sofia Ivana Keser, LL.M. Ivana Keser, Resource Department for Research Assistant, Protection and Economics, Environmental (IRMO) Regional Development Production Editor: Dragana Markanović, MA Senior Associate (IRMO) Guest Co-Editor: Guest MA Vlad Alex Vernygora, for Asia-Pacific Studies, Lecturer, Centre of Technology, of Law Tallinn University Departmen Estonia Institute for Development and International Relations – IRMO ©
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Vol.XVIII,XXIII No. (78) 66 - -2017 2012 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 3 7 7 37 28 29 69 49 ..36
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Simona / UDC 327(497.5) UDC
Andris Spruds...... Andris
/ Wang Qian...... 1 / ...... 57 Olga Nežerenko, Ott Koppel
Liu Haiquan...... 1 / Contents / Liu Zuokui...... 19 Liu / Ma Junchi...... 1 Peter Nolan...... Peter Marsela Musabelliu Marsela / / / Explore the Chinese Tourist Source Market and Road Initiative SWOT Analysis and Related Countermeasures for Croatia to Initiative and China’s Choices on the Belt The Challenge of Different Perceptions Discussion Papers...... 1 Discussion Belt, One Road” The Security Challenges of the “One Competitiveness of Small European Union Member States Competitiveness of Small European Kerikmäe...... 9 Tanel and Dutt Kumar Pawan Ferraro, Using Patent Development, Education Policy and Research Using Patent Development, Education to Increase Technological and Development Expenditure Policy The Baltic Sea Macro-Regional Transport Cluster as an Element The Baltic Sea Macro-Regional Transport of the Silk Road Economic Belt China’s Belt and Road Initiative Extension to Central and Eastern China’s Belt and Road Initiative Extension Five Summits, European Countries - Sixteen Nations, Many Challenges Towards a Balanced Synergy of Visions and Interests: Latvia’s Synergy of Visions and Interests: Towards a Balanced Initiatives Belt and Road 16+1 and Perspectives in Articles...... China-CEEC Cooperation: China’s Building of a New Type of China’s Building of a New China-CEEC Cooperation: Relations International State, Market and Infrastructure: State, Market and Silk Road New The Introductory Papers...... 6 Introductory ISSN 1848-5782 ISSN
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Vol.XVIII,XXIII No. (78) 66 - -2017 2012 6 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 7
KEY WORDS: infrastructure, development, growth, welfare to contribute positively to growth and welfare in the countries along the Silk Road. Infrastructure development, including transport, energy, buildings, electricity, telecommunications, telecommunications, buildings, electricity, Infrastructure development, including transport, energy, growth have been cruciallywater and sewage, as well as health and education, important for China’s role in infrastructure development has the potential welfare. China’s as well as for Chinese people’s Abstract Peter Nolan The New Silk Road State, Market and Infrastructure: State, ISSN 1848-5782 1848-5782 ISSN UDC 321.01:339.1:338.49(510) DOI 10.1515/cirr-2017-0004 CIRR XXIII (78) 2017, 7-18 XXIII (78) CIRR 2 , 1 or small number of individuals, and which it therefore cannot or small number of individuals, it therefore and which be expected that any individual or small individuals number of this duty requires of performance maintain. The or should erect of periods different the in expense of degrees different very too society” (Smith 1776, vol. 2: 244). “The third and last duty of the sovereign or commonwealth is that is that commonwealth or sovereign and last duty of the third “The those and public institutions those maintaining and erecting of degree highest may be in the they though which, public works nature a such of however, are, society, a great to advantageous that the profit could never repay the expense to any individual China Development Forum, 2014. paper. and Zhang Jin for their comments on this Clissold, Stephen Perry I am grateful to Tim 1 2 manufacturing output, compared with less than one-fifth (Bairoch 1982). economic dynamism The foundation of China’s long-run in the West Up until the eighteenth century China’s technological level was more China’s technological century eighteenth Up until the 1986, 1998, and 2000). In (Li Bozhong Europe of that advanced than global of one-third around produced China century eighteenth the Pre-modern China Infrastructure in China’s development in China’s Infrastructure sizes and traditions, and at different points in history. The complex The points in history. different at and traditions, sizes and provision and provision of infrastructure government relationship between Smith’s proposition: captured precisely by Adam development was stages of development, markets often fail provide the necessary markets often to stages of development, of state and nature extent provision. The requisite level of infrastructure between countries of different may vary infrastructure involvement in Infrastructure is to It is for development. crucial Infrastructure in order necessary all at countries In entrepreneurship. of energies creative the liberate State, market and infrastructure and market State,
Vol.XVIII,XXIII No. (78) 66 - -2017 2012 8 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 9 by the magistrate” (quoted in Ch’ao Ting-chi 1936: 72). by the magistrate” (quoted in Ch’ao and locks… All these affect the conditions of the public treasury people and must be carefully considered the welfare of and the Flood and drought should be of as much concern to him as pain to concern as much of should be drought and Flood of the survey the topography or sickness of his person. He should of drainage, and investigate sluices ask about conditions region, “The ideal magistrate is an official who is close to the people. within China is so great, that all of Europe cannot be compared be cannot Europe all of that great, is so China within in Ho Ping-ti 1959: 199). therewith” (quoted “[T]he particular riches of every province, and the ability ability of and the province, riches of every particular “[T]he and canals, have means of rivers by merchandise transporting on carried trade flourishing…The very always empire the rendered environment in which both domestic and international capital wishes to international and domestic both which in environment hospitals, and housing. of an to the creation has been essential of infrastructure The growth ports, roads, railways, airports, electricity supply, water sewage treatment, universities, as well as its schools, supply, and telecommunications network, economy has steadily expanded. Expansion of China’s infrastructure has expanded. Expansion of China’s infrastructure has steadily economy been a crucially of market forces. Since important factor in the release its expanding in progress has made remarkable 1970slate China the Under China’s policies and opening up, the scope of the market China’s policies Under of reform Modern China massive centrally massive River Authority schemes such as the Yellow centrally administered water Grand Canal, as well as a myriad local of the maintenance and the scholar-oficial, Gu Shilian, stated: control structures. The early Qing peace and law, famine prevention, commodity price stabilisation, commodity and famine prevention, peace and law, function state most important the However, supply. of the money control and the national level at both the local This included was water control. In order for the market mechanism to function effectively, the Chinese state effectively, to function the market mechanism for In order of framework They included the critically functions. important performed century, Father Du Halde, the Belgian Jesuit priest wrote: Jesuit Belgian the Du Halde, Father century, was the force of a competitive market economy. In the eighteenth eighteenth the In economy. market competitive a of force the was produced and traded along the route eventually included woollen and eventually included woollen route the along traded and produced through a network of intermediary merchants. Trade across the Old a network of intermediary merchants. Trade Silk through thereafter flourished and Dynasty Tang the during expanded routes Road products as silk, the Muslim rule across much of Central Asia. As well under China’s Old Silk Road developed during the Han Dynasty, when Europe when Dynasty, Han the during developed China’s Old Silk Road was united under Roman rule. Following the collapse of the Roman Empire, China’s trade across Central Asia to Byzantium continued, operating Old Silk Road The land route Infrastructure and the Silk Road Infrastructure internet users. tap water increased from 48 per cent to 97 per cent, and the number of number and the 97 per cent, to 48 per cent increased from tap water public transport vehicles per 10,000 to 11.8. people increased from 2.2 By 500 million 2011 people and over China had 74 mobile phones per 100 sq m. to 33 sq m., the proportion of the population with access to gas access to with population the of proportion the m., sq 33 to sq m. access to with proportion the cent, 92 per to cent 19 per from increased from 623 b. kwh to 4,193 b.kwh and the volume of freight traffic increased traffic freight of volume the and b.kwh 4,193 to kwh b. 623 from urban areas, 1). In the (Table trillion ton-km to 15.9 trillion ton-km 2.6 from housing space the amount of residential from 14 per person increased Between 1990 and 2011 of electricity increased China’s consumption infrastructure repair and expansion. In China most of the financial stimulus stimulus financial the of most China In expansion. and repair infrastructure building expansion, infrastructure been allocated to package has that benefit development. productive assets been crucial to infrastructure finance. In the West, less than one-fifth of the total financial stimulus packagesince 2008 has been devoted to ‘bird’ of market forces can spread its wings as the cage expands. China’s China’s expands. cage as the wings spread its can forces market of ‘bird’ functions vitally important have performed governments central local and have banks state-owned and the expansion, infrastructure in stimulating invest. Infrastructure can be compared to the ‘cage’ within which the which within the ‘cage’ to compared can be Infrastructure invest.
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Vol.XVIII, No. 66 - 2012 10 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 11 This country is the starting-point from which many merchants set starting-point from which many This country is the Polo 1974: 80). wares all over the world” (Marco out to market their trade and industry. They have very fine orchards andvineyards and flourishing estates. Cotton grows here in plenty, besides flax the means of life. is fruitful and productive of all and hemp. The soil “Kashgar has villages and towns aplenty. Its inhabitants live by Its inhabitants towns aplenty. has villages and “Kashgar to stimulate the region’s economic development. constructed the Trans-Siberian Railway of the constructed across the vast expanse the Soviet steppes, and built rail links to Kazakhstan and Uzbekistan. Under helping expanded, Asia was greatly Central rail links in density of the Union possibility for a new era for the land route. Under the Russian Empire and the Under route. land for the era possibility a new for the Soviet Union, the vast land mass stretching from Europe to the Pacific was unified politically. Between 1891 and 1916 the Russian Imperial state The development of road and, especially, and the The development of road and, rail technologies up the Asia opened in Central structures of political transformation New Silk Road New costs across the Silk Road routes were high, and trade along the sea route the along trade and high, were routes Silk Road the across costs land route. gradually outpaced that along the era, through to the eighteenth century (Levi eighteenth 1999). to the However, under era, through transport mules, camels and mainly used which technologies, traditional section of the Silk Road” (Liu Xinrui 2010: 106). section of the Silk Road” (Liu Xinrui the pre-modern remained vibrant throughout Trade along the land route institutions, like the Buddhist ones before them, established themselves them, before institutions, like the Buddhist ones on all the major trade routes… [providing] the infrastructure for a large along the Silk Road. Up until the eighth century “Buddhist Up until the eighth century along the Silk Road. institutions the of Eastern Eurasian section the all along provided the infrastructure “Islamic onwards century tenth the 72). From (Liu Xinrui 2010: Silk Road” Collective action was vital to a vibrant Silk Road. Safe resting places for resting Safe Silk Road. vibrant a to was vital action Collective commerce thriving to essential were routes trading the along merchants Asia to China Marco Polo encountered a long sequence of vibrant vibrant of sequence a long encountered Polo Marco to China Asia Tabriz, Iraq), Basra (in today’s and Baghdad including cities, commercial in Xinjiang: as Kashgar (Kashi) Iran), as well Kerman (in today’s Yazd, and cotton cotton textiles, carpets, tapestries, and draperies. In his journey across laden with costly wares and precious stones of great great of stones precious and wares costly with laden price and big pearls of fine quality. It is also a port for the total the that so territory, surrounding the all of merchants amount of traffic in gems and other merchandise entering and leaving the port is a marvel to behold” (Marco Polo 1974: 237). “Zaiton is the port for all the ships that arrive from India India from arrive that ships all the the port for is “Zaiton straits were as the sands and mountain passes of Central and mountain passes of Central sands straits were as the caravanserais. It became to Asia; its ports were like the land outside the Jade Gate the southern Chinese what the (Wang Gungwu 1998). was to the northern Chinese” “The South China Sea was the main trade route of what may may what of route trade main the was Sea China South “The trade in commodities and be called the Asian east-west islands waters and Its Route. Silk second ideas. It was the Polo wrote of the city of ‘Zaiton’ (Xiamen) thus: Polo wrote of the city of ‘Zaiton’ Guangzhou was at the centre of the thriving trade with southeast of the thriving trade with southeast Guangzhou was at the centre In the thirteenth century, Marco Asia for the next thousand years. Dynasty. The trade across the Nan Hai greatly expanded during the Nan Hai greatly expanded during the Dynasty. The trade across the Tang Dynasty: Trade across the South China Sea (Nan Hai) to Southeast and South Sea (Nan Hai) to Southeast and South Trade across the South China already well developed by the Han Asia is of great antiquity, and was Old Silk Road The sea route using modern technologies for both road and rail, including high-speed both road and rail, for technologies using modern China and Europe will taken to transport goods between trains, the times of the links will increase. fall and the reliability taken. This compares with 40-50 days for transport between Europe and and Europe between transport days for 40-50 with compares This taken. develops, investment infrastructure As sea route. the modern China by and and modern signalling systems, have facilitated increased efficiency in Railway Trans-Siberian the across journey recorded fastest The systems. rail from Beijing to Moscow is just eight days, with two weeks the normal time Technical progress in railways, including electrification, container rail trucks, trucks, rail container electrification, including railways, in progress Technical
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Vol.XVIII, No. 66 - 2012 12 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 13 education, has more hospital beds per 1000 people, and a a and people, 1000 per beds hospital more has education, China 2). (Table person per consumption electricity higher much behind that in China. Compared with other large Asian countries countries Asian large other with Compared China. in that behind higher in group age relevant the of share larger a enrols China constrained by lack of infrastructure development. lags Infrastructure provision in South and Southeast Asia still ‘assets’, with the benefits confined to a small section of the to a small section of the ‘assets’, with the benefits confined countries, development is population. In most developing ‘finance for global infrastructure’ as a central theme. In the the In theme. central a as infrastructure’ global for ‘finance stimulated have rates interest ultra-low countries, income high of equities, property and other a renewed bubble in the price The G20 meeting in Sydney in February 2014 took the topic of in February 2014 took the topic of The G20 meeting in Sydney Large investments in infrastructure in the countries along the sea sea the along countries the in infrastructure in investments Large Silk Road is to achieve its full route are necessary if the New potential. New Silk Road New developed gradually up until the eighteenth century, but the eighteenth century, but developed gradually up until European colonial rule. accelerated thereafter under colonies, including Indonesia, the Philippines, Indo-China, and the Philippines, Indo-China, and colonies, including Indonesia, communities of Chinese people Malaya. In Southeast Asia In the nineteenth century the Sea Route was revolutionised was revolutionised century the Sea Route In the nineteenth European by mainly operated and owned ship, steam the by by European 1900 the Nan Hai was encircled companies. By exceeded that across Central Asia. exceeded that China and Europe, compared with the years required in the pre- compared with the years China and Europe, nineteenth century the land route. By the early modern era by greatly Europe and China between trade maritime of volume the century ‘clipper’ ship represented the apogee of sailing ship ship sailing of apogee the represented ship ‘clipper’ century between sail to days 120-150 around required It technology. technologies progressed and European middle class demand demand class middle and European progressed technologies porcelain and tea, purchase of Chinese Europe’s increased. The nineteenth expanded. greatly (e.g. ‘nankeens’) heavy textiles From the sixteenth century onwards European shipping shipping European onwards century sixteenth the From provides an important guide for the philosophy of infrastructure provides an important guide for the philosophy of infrastructure or sea. development along the New Silk Road, whether by land Peaceful international relations are the fundamental pre-requisite Peaceful international relations are the fundamental pre-requisite approach Xiaoping’s Deng Road. Silk New the of success for of ‘setting aside disputes and pursuing joint development’ has accumulated more experience than any other country than any other country has accumulated more experience in financing, building and of the New Silk Road. Infrastructure is central to development operating infrastructure projects. expanding international economic relationships and thereby relationships and thereby expanding international economic In recent decades China deepening cultural interaction. Infrastructure provision is a vitally important instrument for vitally important instrument for Infrastructure provision is a Conclusion projects that can support accelerated growth and improvement improvement and growth accelerated support can that projects along the sea route of the New of mass welfare in the countries Silk Road. There are large potential mutual benefits from international mutual benefits from international There are large potential of a wide range of infrastructure co-operation in the provision of experience in financing, building and operating transport and operating transport building financing, in of experience countries. unparalleled in developing infrastructure is carried by air, are many times larger than that of the other four that of the other four are many times larger than carried by air, 3). China’s depth taken together (Table large Asian countries billion compared with 1.3 billion in China. However, China’s However, China’s with 1.3 billion in China. billion compared traffic through by rail, the volume of container haulage of goods the volume of freight of passengers and its ports, the number with the highest populations apart from China are India, Pakistan, India, Pakistan, China are apart from highest populations with the of 1.8 combined population with a and Indonesia, Bangladesh, to sanitation facilities and a higher proportion with electricity. electricity. with proportion a higher and facilities to sanitation developed highly more strikingly is infrastructure transport China’s countries The four Asian Asian countries. in other large than that also has a higher percentage of the population with access access with population the of percentage higher a has also
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Vol.XVIII, No. 66 - 2012 14 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 15 74 513 17 4,193 3,087 512 11.8 92 97 3,164 36 33 2011 15,932 2,947 5,137 7,452 289 7 23 5 1,347 1,000 145 5.3 45 64 807 25 25 2000 4,432 1,377 613 2,373 64 - - negl. 623 487 48 2.2 19 48 196 18 14 1990 2,621 1,062 336 1,159 63 Tables: Number of internet users (m.) Information technology:- Mobile phones per 100 people - rural areas - urban areas Residential housing space p.c. (sq metres):- Building construction:- metres) Floor space of buildings completed m. sq - Percentage of population with access to: - Percentage of population with access - gas - tap water - Public transport vehicles (buses, trolley buses etc.) - Public transport per 10,000 people - Industry - Households Cities:- Electricity consumption (billion kwh) Electricity consumption Of which:- - Petroleum/gas pipelines - Civil aviation - Highways - Waterways Freight traffic (b. ton-kilometres) of which:- (b. ton-kilometres) Freight traffic - Railways Table 1: Expansion of China’s infrastructure, 1990-2011. infrastructure, Expansion of China’s Table 1: Source: ZTN 2012: 276, 378, 393, 602, 623, and 657-8 149 1,225 240 174 Population (million) 1,338 1,788 2,631 252 571 590 449 Electricity consumption per person (kwh) (2009) 85 1,720 660 310 Air freight million ton-km) (2010) 17,441 2,775 99 41 66 66 62 Percentage Percentage of population with access to electricity (2009) 6 268 107 2 64 35 Air passengers (millions) (2010) 56 55 23 39 34 with access with access to improved sanitation (2010) urban rural 74 57 58 73 72 Percentage Percentage of population 2.1 129.6 21.7 1.4 9.8 8.4 Container traffic through ports (million TEU) (2010) beds per 1000 people (2005/10) 4.2 0.3 0.9 0.6 0.6 Hospital 600 4 6 611 1 rail (billion ton- km) (2000-2010) 2,451 Goods hauled by 16 23 5 (2010) 26 11 Enrolment Enrolment in tertiary education (% age group) developing countries. large Asian developing countries. Asian developing large - Indonesia - Pakistan of which:- Bangladesh - - India developing developing countries Sub-total Sub-total four for large Asian China Pakistan Bangladesh India Indonesia China Table 3: China’s transport infrastructure compared with four large Asian Table 3: China’s transport infrastructure Table 2: Selected indicators of China’s infrastructure compared with four with compared infrastructure of China’s indicators 2: Selected Table Source: World Bank 2012: 320. 288-9, and 324-5. Source: World Bank 2012: 86-7, 101-1, 108-9, 166-7,
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Vol.XVIII, No. 66 - 2012 16 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 17 Zhongguo ( . Basingstoke: . . (in Chinese). New York: Paragon New York: . Washington DC: Oxford , Fall, pp. 269-334. , Fall, pp. Journal of Economic and Social Economic of Journal Chicago: University of Chicago of University Chicago: Hangzhou: Zhejiang Academy of Academy Zhejiang Hangzhou: . Cambridge: Harvard University Press. Harvard University Cambridge: . . Oxford: Oxford University Press. Singapore: Times Academic Press. Chinese Statistical Yearbook , 42(4). . Penguin Books. ). (ZTN). Beijing: Zhongguo tongji chubanshe. ). (ZTN). Beijing: Zhongguo tongji World Development Indicators The Wealth of Nations. of Wealth The The Nanhai Trade. The Travels Key economic areas in Chinese history. Key economic The development of agriculture and industry in Jiangnan, of agriculture and industry in The development The Silk Road in History The Population of China of Population The The early industrialisation of Jiangnan, 1550-1850 Agricultural Development in Jiangnan, 1620-1850in Jiangnan, Development Agricultural University Press. tongji nianjian Press, Cannan edition (1976). Macmillans. House. Beijing: Shehui kexue wenjian Publishing History of the Orient 1644-1850: Trends and prospects. Social Sciences. Reprint. route. Asian caravan Central the Journal of European Economic History European Economic Journal of World Bank, 2012. Wang, G., 1998. State Statistical Bureau, 2012. State Statistical Bureau, Polo, M., 1974. 1776.A., Smith, Liu, X., 2010. Li, B., 2000. Li, B., 1998. B., Li, Li, B., 1986. Ho, P., 1959. P., Ho, of transformation century eighteenth 1999. India, Russia and the Levi, S., Chi, C., 1936. Bairoch, P., 1982. International industrialisation levels from 1750 to 1980. 1750 to levels from industrialisation 1982. International P., Bairoch, Bibliography ) was the first holder of both [email protected] ( the contradictory character of globalisation and the long-run and the of globalisation character contradictory the and the West. history of China researched on rural reform, enterprise reform, poverty and reform, rural reform, enterprise researched on in China and the comparative system reform famine in China, 1980s, since the business international of transformation USSR, Studies. Peter Nolan’s research is devoted to multi-disciplinary to is devoted research Nolan’s Peter Studies. He has of development. analysis political economy of the Development (2011-2016)Development Development of Centre in the He is the of Cambridge. University both in the Studies, Development of the University’s Director of Founding Centre the Sinyi the (1997-2010) Management Chinese in Chair the in Chinese in Chair Hua Chong the and Business School Judge Peter Peter Nolan
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suggestions KEY WORDS: 16+1 Cooperation Framework, new type of international policy relations, challenges ahead, Cooperation and gives some suggestions. games, instead, it fully respects and closely watches the core interests and major concerns of the concernsmajor and interests core the the watches of closely and respects it fully instead, games, it is committed to creating a cooperative platform through consultation, relevant parties; Fourthly, to meet the interests of all. The article also makes an analysis of the challenges facing 16+1 framework adheres to the principle of mutually-beneficial and win-win cooperation, and proposes and win-win cooperation, and proposes framework adheres to the principle of mutually-beneficial never engages in zero-sum this framework Thirdly, to wisely handle differences and divergences; The article analyzes how the 16+1 Cooperation promotes the Chinese new type of international international of type articlenew Chinese The the promotes Cooperation 16+1 how the analyzes on not rejecting third parties the “16+1 Cooperation” insists relations from four perspectives: firstly, the cooperation internationaland promotes the idea of open and inclusive cooperation; Secondly, Abstract Liu Zuokui Relations China-CEEC Cooperation: China’s China’s Cooperation: China-CEEC of International Type of a New Building ISSN 1848-5782 1848-5782 ISSN UDC 327(510:4-11) DOI 10.1515/cirr-2017-0005 CIRR XXIII (78) 2017, 19-34 XXIII (78) CIRR all peoples of the world should work together to safeguard the the safeguard to together work should world the of peoples all development” common the forward push and peace world (Xinhuanet 2013). going against it will plunge to their doom; therefore we should should we therefore doom; their to plunge will it against going Cold War expansion or the zero-sum abandon the colonial All countries times. the of trend the up with keep and mentality should jointly promote to establish cooperation. Moreover, relations centering around the win-win new-typed international “The world tide is moving forward with unstoppable might. might. is moving forward with unstoppable “The world tide while those the current will see prosperity, Those moving with relations based on mutual benefitcreating new dynamics and a new vision for the “16+1 Cooperation”. and win-win cooperation, and and interests created and shared by all (People 2016). The meeting meeting and interests created and shared by all (People 2016). The showcases China’s practice of building a new pattern of international sustainable experiences, namely: consultation on the basis of equality; equality; sustainable experiences, namely: consultation on the basis of mutual respect and mutual support; win mutually-beneficial cooperation; and openness win- and inclusiveness; joint development “16+1 Cooperation” mechanism was established five and gathered many valuable and has become increasingly mature years ago, it and attended the 5th Meeting of the Heads of Government of China of the Heads of Government of China and attended the 5th Meeting the At CEECs). (the countries European Eastern and Central 16 and Li stressed that ever since the “16+1 Economic and Trade Forum”, From 4 to 6 November 2016, Premier Li Keqiang paid a visit to Latvia Latvia to a visit paid Keqiang Premier Li 2016, November 4 to 6 From His proposal in handling international relations has been closely followed relations has been closely followed His proposal in handling international with wide interest in checking whether by the international community, in China’s diplomacy. the initiative will be implemented on mutually-beneficial and win-win cooperation. He stated that: and win-win cooperation. on mutually-beneficial Relations titled: “Keeping with the trend of the times, and promoting the and promoting the “Keeping with the trend of the times, Relations titled: speech, his 2013). During (Xinhuanet development” peace and world relations with a focus a new type of international Xi proposed to build When Chinese President Xi Jinping visited Russia on 23 March 2013, 23 March 2013, Russia on Xi Jinping visited President When Chinese of International State institute at Moscow a keynote speech he made Forward
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Vol.XVIII, No. 66 - 2012 20 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 21 Meeting th Meeting of Heads of Government of China Meeting of Heads of Government rd China, outside the “16+1 Cooperation” framework. At the 4 the At framework. “16+1 Cooperation” China, outside the meeting and worked together with CEECs including Macedonia, Hungary with CEECs including Macedonia, together and worked meeting Accordingly, Route. Express Land-Sea China-Europe build the Serbia to and Greece became the first beneficiary of increased cooperation with China-EU cooperation. At the 3 China-EU cooperation. the and CEECs, held in Belgrade, Serbia, Greece was invited to attend likewise, has also gone through a positive change from an initial period of an initial period from a positive change through likewise, has also gone Moreover, China. with collaborate willingness to present the suspicion to to boost the EU expects the “16+1 to be the critical platform Cooperation” The representatives were all The representatives of EU institutions invited attend the Annual to attitude, EU’s The CEECs. and China of Government Heads of of Meeting Bank for Reconstruction and Development, Belarus and Switzerland all Reconstruction Bank for at different stages. showed strong interest in participation community and the interest of countries and organizations outside the and organizations of countries interest community and the framework, with the intention of joining. Greece, Austria, the European It has been 5 years since the “16+1 Cooperation” framework was framework “16+1 Cooperation” since the 5 years has been It international the from attention has attracted it far 2012. So established in on not rejecting third parties and promotes the idea of open and inclusive inclusive and open of idea the promotes and parties third rejecting not on international cooperation. There are four different ways in which “16+1 Cooperation” promotes a promotes ways in which “16+1 Cooperation” different four are There insists “16+1 Cooperation” the Firstly, relations. international of type new international relations international How “16+1 Cooperation” promotes a new type of a new promotes “16+1 Cooperation” How aforementioned new-type of international relations. new-type of international relations. aforementioned cooperation, and has achieved fruitful results. The “16+1 Cooperation” “16+1 Cooperation” The fruitful results. and has achieved cooperation, the construct to attempt latest is China’s speak, to so framework, jointly jointly launched the “16+1 Cooperation” framework in 2012. Ever since based on Cooperation” “16+1 out actively carrying been China has then, the principle of openness and inclusiveness, mutual benefit and win-win Under the initiative of the Chinese government, China and the 16 CEECs 16 CEECs the and China government, Chinese the of initiative the Under Meeting of Heads of China Meeting of Heads of Government th country having particular demands. The CEE region is not a homogeneous having particular demands. The CEE region country to wisely handle differences and divergences. with each 16 CEE countries, the exist great differences among There international relations is that the cooperation framework adheres to the to adheres framework cooperation the is that relations international principle of mutually-beneficial and win-win cooperation, and proposes expand cooperation. type of a new is promoting “16+1 Cooperation” which way in second The system. Instead, it is an open, inclusive and mutually beneficial cooperative beneficial mutually and inclusive open, an is it Instead, system. framework that welcomes and supports all willing parties to join in and The process of “16+1 Cooperation” has suggested that the initiative The process of “16+1 Cooperation” and cyclic a closed-off is not Chinese government by the proposed of 1.3 trillion Swiss francs. The engagement of Switzerland has undoubtedly Switzerland of engagement The 1.3 trillion Swiss francs. of Cooperation” framework. broadened the scope of the “16+1 of 75 million customers, for over a decade from 2004 over a decade from to 2014, Switzerland for of 75 million customers, started to finance over 300 cooperative projects in the CEE region.These total a with more, and energy, health, tourism, economy, covered projects great number of enterprises investing comprehensively in the CEE region. great number of enterprises market strategic investments and tap into a huge to safeguard its In order Switzerland also maintains an extensive presence as a stakeholder in the in as a stakeholder presence extensive also maintains an Switzerland Union European admitted into the CEECs were the Ever since CEE region. in 2004, accession eastwards, with a Switzerland has sped up its market Switzerland attended the 5 Switzerland attended an been Belarus has always Latvia, as observers. Riga, in held CEECs and CEECs. the and land, linking Russia on Silk Road the of node important for Reconstruction and Development has provided more opportunities for opportunities more has provided and Development Reconstruction for China-CEECs cooperation in the financial realm. In addition, Belarus and internationally-recognized, development-oriented financial institution, the institution, financial development-oriented internationally-recognized, Development engages in a wide and Reconstruction European Bank for Bank European participation of the The CEE region. business in the of range influential status in the CEE region. More importantly, Austria showing is enthusiasm towards joining the “16+1 Cooperation” framework. As an Austria and the European Bank for Reconstruction and Development Development and Reconstruction Bank for European the and Austria country is a Central European parties. Austria invited as third were also that maintains a close relationship with the Višegrad Group and enjoys of Heads of Government of China and CEECs, held in Suzhou, China, China, Suzhou, in held CEECs, and China of Government of Heads of
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fatigue. fatigue. of CEECs. Thus, it is reasonable to conclude that the contradictions of CEECs. Thus, it is reasonable to conclude that the contradictions to and differences among CEECs are common and almost impossible reconcile. The EU has failed to do so and is showing signs of expansion EU has contributed tremendously to the accession and integration of of EU has contributed tremendously to the accession and integration CEECs to the EU, but such efforts also led to the unbalanced development at different stages. To go into detail, some CEECs are EU member states some CEECs are EU member states at different stages. To go into detail, countries while others are non- while others are not; some are Euro-zone is deeply involved in the CEE region, the Euro countries. As an actor who The current diversity of CEECs in terms of national conditions, domestic terms of national conditions, domestic The current diversity of CEECs in direct result of European integration politics and foreign policies is the the common mindset of CEECs, that the aim of the symposium of CEECs, that the aim of the the common mindset is to handle consultation. and communication divergences through differences and mentioned countries was not there to seek consensus. Instead, they all seek consensus. Instead, they to was not there mentioned countries energy (and their country their illustrate why to time precious made use of policy in particular) is different from the other two. In fact, this reflected are relatively alike in terms of national conditions. It was not until the seminar seminar the until was not It conditions. national of terms in relatively alike are of the above- representative each attending to realize that that I started seminars hosted by CEECs such as the international seminar on energy energy on seminar international as the such CEECs by hosted seminars Lithuania), Latvia, (Estonia, countries Baltic three the among cooperation countries Baltic the that think used to 2016. I 17 October on held in Latvia region either. I have participated in a great many conferences and conferences many great in a have participated I either. region mutual respect, harmonious coexistence, mutually-beneficial and win- The “16+1 Cooperation” framework has pioneered a new model of has pioneered framework “16+1 Cooperation” The international relations in the new era of globalization which emphasizes “Amber Road” initiative as it is not limited to regional trade and inter- “Amber Road” initiative trade and as it is not limited to regional connectivity. that are non-EU members. Secondly, it is members. more comprehensive than the that are non-EU logistics “Danube Strategy” as it comprises and infrastructure cooperation the than pluralistic is more it Moreover, on. so and wharfs, including ports, their weaknesses. To begin with, it is more inclusive than the cooperative the than inclusive it is more with, begin weaknesses. To their projects in the Adriatic, Black and Baltic Sea regions as it involves CEECs the above-mentioned initiatives, by proposing infrastructure and logistics infrastructure initiatives, by proposing above-mentioned the cooperation in the Adriatic, Black and Baltic Sea existing initiatives, offsetting merits and positives of all the has integrated regions. The project get involved. Based on this situation, the Chinese government has been get involved. Based government on this situation, the Chinese the “16+1 framework and actively synergy within Cooperation” promoting CEECs that are members of the EU while the western Balkans (except western EU while the the members of are CEECs that by the proposed was mainly Road” The “Amber excluded. Croatia) are to opportunity barely has the Europe and Southeastern Baltic countries initiatives are indeed exclusive to a certain degree, as the cooperative as the initiatives degree, are indeed exclusive to a certain projects in the Adriatic, Black and Baltic Sea regions mainly involve projects in the Adriatic, Black and Baltic Sea regions focus on integration regional and cooperation in the fields of energy, communication and CEECs that are members of the EU. The different among transportation, lot of attention from the Balkan states. The Baltic countries, on the other other the on Baltic countries, Balkan states. The the from lot of attention gives Initiative which Road” “Amber the with concerned more are hand, cooperative The states. those among inter-connectivity and trade to rise etc. Each one of these initiatives has pros and cons. The “Danube The cons. and pros has initiatives these of one Each etc. a receiving therefore the estuary of the Danube River, Strategy” exploits aiming to integrate with the “16+1 Cooperation” framework and the “Belt and the framework “16+1 Cooperation” with the integrate aiming to the cooperative and Road” Initiative as the “Danube Strategy”, such projects in the Adriatic, Black and Baltic Sea regions, the “Amber Road”, each other’s successes in the spirit of mutual respect and understanding. and understanding. mutual respect spirit of in the successes other’s each many proposals forward have put CEECs far, so is that, case in point A differences differences among CEECs. Specifically,the framework focuses seek countries should participating and suggests cooperation win-win on the sharing lessons and differences, learning while minimizing ground common The “16+1 Cooperation” framework has wisely and flexibly handled the
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Vol.XVIII, No. 66 - 2012 24 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 25 Meeting of Heads Meeting th the “16+1 Cooperation” framework and China-EU partnerships. The Baltic The and China-EU partnerships. framework “16+1 Cooperation” the of Government of China and CEECs, there were plenty of reports about reports plenty of were CEECs, there and China of Government of pays more China However, Baltic port. the of China’s possibleacquisition under project mutually-beneficial a is which railway Baltic the to attention synergy between China and Europe in the infrastructure sector by listing sector infrastructure in the China and Europe between synergy three examples. The first example is that before the 5 The “16+1 Cooperation” framework promotes multiple synergies between The “16+1 framework Cooperation” China and Europe, which has indeed the on elaborate like to I would Here interests. EU’s core the about concern reflected China’s respect and Cooperation”, rather than playing zero-sum games. Cooperation”, rather than playing with multiple crises such as the financial crisis, refugee crisis and regional conflicts, etc. Moreover, China committed is “16+1 through and EU-China cooperation EU within development to promoting balanced over “16+1 Cooperation” on many occasions. In response, China has over “16+1 Cooperation” supports and power peaceful a as influence EU’s the acknowledged fully is faced EU the when time a especially at self-reliance, and EU’s unity upon solidarity within the EU and the efficiency of related EU policies. The instance, have voiced their concerns EU institutions and Germany, for “16+1 Cooperation” and the EU. The EU has always “16+1 and the EU. been suspicious Cooperation” of worried that China is China’s motives in proposing “16+1 Cooperation”, adopting a “divide-and-rule” policy which will exert negative influence the core interests and major concerns of all parties into full consideration. full into parties all of concerns major and interests core the China’s deeds in handling relations between This can be clearly seen from The “16+1 Cooperation” framework initiated by China neither contests contests China neither initiated by framework Cooperation” “16+1 The game. Instead, it takes engages in a zero-sum nor of others, interests the it fully respects and closely watches the core interests and major concerns concerns major and interests core the watches closely and respects fully it of the relevant parties. The third way in which “16+1 Cooperation” promotes a new form of form new a promotes “16+1 Cooperation” which way in third The Instead, game. a zero-sum in engages it never is that relations international on the mutual learning and understanding between China and 16 CEECs 16 and China between understanding and mutual learning the on relations. of international classic in the field is a new cultural cultural traditions and stages advocate of CEECs that vision in line with the policies are pragmatic of development. China’s flexiblebased cooperation The path. development their of choice independent and win cooperation between China and CEECs of different social systems, systems, social of different and CEECs China between cooperation win Development Plan of CR Express CR of Plan Development issued by the National Development and Reform Development National issued by the
, international relations. rise to platform building and participation, through which China expects which building and participation, through platform rise to to create new-types of initiatives and explore common for cooperation, benefits. More importantly, China seeks promote to a new model of etc. They are more like mechanisms playing the role of functional years, has increasingly given policy, in recent platforms. Chinese foreign In today’s world, international relations are normally shaped by multiple, In today’s world, international cooperation, South-South G20, BRICS, as the such multilateral platforms a new type of international relations is how it is a new type of international committed to creating a to meet the interests of all. cooperative platform through consultation, force for furthering that cooperation. force for furthering that cooperation. The fourth and final way in which “16+1 Cooperation” is emblematic of in the construction of the corridor. In a nutshell, “16+1 Cooperation” has In a nutshell, “16+1 Cooperation” the corridor. of in the construction driving a new and will become cooperation truly boosted China-Europe corridor, with transportation hubs, should be completed by 2020 so as to with transportation corridor, freight transport and trade to the greatest extent. China-Europe promote hub a transportation of role will play the Many CEECs, including Lithuania, Construction 2016-2020 Construction railway transport China-Europe the of construction the Committee, perfect convergence of freight that departs from China and arrives at departs from that freight of convergence perfect Belarus, and Asia, Russia, via Central and West Europe Europe North the to According Lithuania. Klaipeda of example is that of Chinese enterprises vigorously promoting cooperation cooperation promoting vigorously Chinese enterprises of example is that with freight deals Klaipeda port Lithuania. The of Klaipeda port with the and is the of the Silk Road Economic Belt, in the construction transport accord with Pan-European transport corridors and has largely promoted and corridors transport Pan-European with accord third The Europe. and China between cooperation pragmatic the the China-Europe Land-Sea Express Route, the Hungary-Serbia high-speed the Hungary-Serbia high-speed Land-Sea Express Route, the China-Europe the high-speed railway connects Hungary-Serbia The railway in particular. is in which connectivity, and thus advances north-south south the to north region, so as to enhance the connectivity of the EU as a whole. The second EU as a whole. The of the enhance the connectivity so as to region, of construction the forward pushing China is now actively is that example via Estonia, Latvia, Lithuania, and Warsaw, to Berlin. Chinese enterprises enterprises Chinese Berlin. to and Warsaw, Latvia, Lithuania, via Estonia, have always been keen on the project and hope to introduce Chinese of building and experiences techniques railways high-speed to the Baltic railway railway is an important project funded by the EU that starts from Helsinki,
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Vol.XVIII, No. 66 - 2012 26 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 27 Established Established Established Progress Established Established Established Established Established Chinese Academy of Social Sciences the Promotion of International Trade Czech Interior Ministry Bulgarian Ministry of Agriculture and Food Science and Information Center of Slovakia Hungary Travel Company Ministries of Education of the 16 CEECs Polish Information and Foreign Investment Agency China Council for Organizer China agency), China (Secretariat) The Czech Republic Bulgaria Slovakia Hungary Poland Poland (executive Site of Secretariat under the “16+1 Cooperation” framework under the “16+1 Cooperation Network 16+1 Thinks Tanks Exchange and 16+1 Technology Transfer Center 16+1 Association for Agriculture Promotion 16+1 Association of Governors 16+1 Commercial Union 16+1 Contact Mechanism for Investment Promotion of Colleges and Universities Enterprises 16+1 Association 16+1 Agency for Tourism Promotion and Association of Coordination Mechanism or Platform Table 1: Coordination mechanisms or platforms established or in-progress platforms established or mechanisms or Table 1: Coordination general “16+1 Cooperation” platform, there are a range of sub-platforms platform, there are general “16+1 Cooperation” in Table 1. and centralized, as detailed that are more specialized established for all parties to exchange views, brainstorm new ideas, tap brainstorm to exchange views, for all parties established Under the practical cooperation. and enrich for cooperation, the potential platforms platforms not only integrate a variety of resources, but also platform, which affairs. The in crucial global and a large voice popularity enjoy great issupport, intellectual provides and information of all sources gathers The “16+1 Cooperation” framework has shown how such multilateral such how shown has framework Cooperation” “16+1 The Established In progress In progress In progress In progress In progress In progress Progress In progress Established To be determined To be determined To be determined To be determined Transport Latvian Ministry of Transport Slovenian Ministry of Agriculture, Forestry and Food To be determined To be determined Organizer of Serbian Ministry To be determined Romania Poland Macedonia Serbia Latvia Slovenia To be determined To be determined Site of Secretariat Center for Cultural Cooperation Maritime Cooperation 16+1 Coordination 16+1 Association for Energy Cooperation 16+1 Association for 16+1 Association for Customs Cooperation 16+1 Association for Arts Cooperation 16+1 Association for Health Cooperation 16+1 Association for Forestry Cooperation 16+1 Association for Logistics Cooperation 16+1 Association 16+1 Association for Transportation Infrastructure Cooperation Coordination Coordination or Platform Mechanism prevent a country from joining a cooperative platform. The BRICs are quite different from most CEECs in terms of history, national condition, most CEECs in terms of history, quite different from comprehensive capability, domestic policy and diplomacy. In response they do nor collaboration, prevail over never differences this, I said that to are more inclined to join the cooperation are Baltic states the because “16+1”, the than rather countries European platform initiated by North past 5 years. In spite of ups and downs, most CEECs started to take a take to most CEECs started ups and downs, past 5 years. In spite of realizing after soon framework cooperation proactive attitude towards the Baltic countries the that me told Baltic diplomat once its positives. A As a matter of fact, “16+1 Cooperation” has been well-received in the has been Cooperation” “16+1 fact, of a matter As
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Vol.XVIII, No. 66 - 2012 28 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 29 the impacts of larger China-EU relations on China-CEECs cooperation on relations China-EU larger impacts of the the growing cost of raw materials and labor forces inside China. The cost of raw materials and labor forces the growing also are hand, other the CEECs, on of exports and capabilities imports of negatively affected by the global economic and financial crisis. Besides, economic growth, and adjusting its economic structure. The decrease markets due to in export increasing competition the is also related to Herzegovina, Montenegro, etc. By 2015, trade between China and most and China between By 2015, trade etc. Montenegro, Herzegovina, declined, and quite dramatically. CEECs (not including Macedonia) This attempting to stabilize to do with China’s reforms, has downward trend 2014, most CEECs’ trade with China fluctuated and showed a general Bulgaria, Bosnia and CEECs like Poland, a few except trend, downward this objective seems difficult to fulfill trade foreign to According states. by “16+1” member faced uncertainty due to the global and domestic 2012 from to China, of Commerce Ministry of statistics provided by the The “16+1 Cooperation” framework has always been committed to committed has always been framework “16+1 Cooperation” The and investment to reach a new high, but bilateral trade promoting in economies and trade has created serious challenges for “16+1 “16+1 for challenges serious created has trade and economies in Cooperation”. Any pioneering work is expected to encounter challenges and risks. and challenges encounter to is expected work pioneering Any Firstly, decline an exception. Initiative is not “16+1 Cooperation” The Challenges Ahead of a new type of international relations. of a new type of In a word, China’s initiatives regarding international relations has revealed relations has revealed initiatives international In a word, China’s regarding win-win cooperation inclusiveness and openness, mindset of a Chinese development healthy the promoted has and game, zero-sum a instead of out that the Baltic diplomat was convinced by my views. by my views. was convinced the Baltic diplomat out that of the country, race and color. Still, BRICs cooperation develops robustly. robustly. develops cooperation Still, BRICs and color. race country, of the window and a a new has offered mechanism “16+1 Cooperation” The It turned and CEECs. China between collaboration for opportunity rare obviously obviously more diversified in termsof social and economic systems, size of some CEECs has also undermined the effectiveness of China-CEECs the CEECs has also undermined of some cooperation. patterns between China and CEECs that, synergizing development strategies and initiatives. Apart from have also caused difficulties in transition instability, elections and leadership governmental frequent and fruitful results. It needs time, skills and experiences to nurture pragmatic nurture to experiences skills and time, needs It results. fruitful and and behavioral The differences in state regimes, thinking cooperation. resources on a global is scale. The Chinese vision growth” not of “pursuing stability. So far, the synergy of development in accord with CEECs’ goal for tangible strategies and initiatives produced emphasized by China has not democratic governance. In contrast, China interprets development as development interprets China contrast, In governance. democratic economic of integration the competitiveness and economic of rise the and CEECs faces many difficulties.adopting election Countries understandings of national development. China and CEECs have different sustainability of the and welfare employment, on more politics focus Thirdly, the all-round synergy of development strategies development strategies between China Thirdly, the all-round synergy of the Ukraine crisis broke out, Poland insisted on calling for each party to party each calling for insisted on Poland out, crisis broke Ukraine the EU’s sanctions against resist Russia’s with the “invasion” and acting in line attach importance to it. Russia, but China seemed not to “16+1 Cooperation” mechanism has indirectly played “16+1 mechanism a role in resolving Cooperation” with China in political cooperation necessity of the crises since those by CEECs many times. When and security realms has been underlined Russia-EU conflicts. As a result, the ways of dealing with all kinds of potential of kinds all with dealing of ways the result, a As conflicts. Russia-EU The countries. tasks by those as priority regarded are security threats constantly challenged by the Ukraine crisis, refugee crisis, terrorism and crisis, terrorism crisis, refugee Ukraine challenged by the constantly and Sea Baltic the CEECs bordering The EU. Russia and between tensions of the Russia-America and located at the forefront the Black Sea are disadvantage of a single function, as it only deals with business and does as it only deals with business a single function, disadvantage of has been CEE region the situation of security politics. The involve not Secondly, the ever-worsening regional security has posed new challenges challenges new posed has security regional ever-worsening the Secondly, has the framework “16+1 Cooperation” The “16+1 Cooperation”. the for suspect Chinese enterprises of receiving illegal receiving illegal of state subsidies Chinese enterprises suspect thus and of their countries. the trade deficit causing and CEECs was undermined by the EU Anti-dumping and Countervailing Countervailing and EU Anti-dumping by the undermined CEECs was and surplus has caused China’s trade that noting It is also worth investigation. media often Czech and Polish instance, For CEECs. some for concerns cannot be ignored, as the sustainable as the sustainable be ignored, cannot of China development economic
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Vol.XVIII, No. 66 - 2012 30 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 31 . Firstly, to focus on focus on . Firstly, to (1) To actively create actively create (1) To . have achieved something. have the Belt and Road Initiative Road Belt and the within the framework of the UN, or within the EU and related sub-regional and related EU the within or UN, the of framework within the Organisation as the (such frameworks security regional or frameworks Cooperation” and Cooperation” Regarding the security issues faced by the CEECs, they can be solved be increased without restrictions in every important field, especially in the in especially field, important every in restrictions without increased be political fields involving security. To maintain the vitality of cooperation, “16+1 and in this regard, must be promoted cooperation strategic hence its function is relatively limited. This is especially true in the early is relatively limited. This is especially in the true its function hence discussion cannot under topics the Moreover, development. of stages cooperation between various frameworks and platforms and achieve various frameworks between cooperation “16+1 The is needed. policy communication better mutual agreements is only a supplement to China-EU cooperation; framework Cooperation” I will present four policy recommendations four will present I policy communication conditions and promote Policy suggestions Policy stakeholders. the US have not showed a clear position towards “16+1 showed a clear position towards the US have not Cooperation”, their influence upon it undoubtedly is significant. Hence, much effort is more with cooperation win-win expanding ways of explore to needed representatives of EU institutions have emphasized on many occasions have emphasized on many EU institutions of representatives way that Only in transparent. more be to needs Cooperation” “16+1 that Russia Germany, Although and progress. cooperation can the China-EU While the EU is not as suspiciousWhile the EU is not used to be, its of “16+1 as it Cooperation” the Besides, Cooperation”. “16+1 for difficulties many pose still regulations Russia is also a key stakeholder in the CEE region. Under such a situation, a such Under CEE region. the in stakeholder key Russia is also a organizations big powers and properly handle relations with those to how China. tricky issue for a 16 CEECs becomes the with ties developing while military presence in the region (through the NATO security framework). security NATO the (through region the in military presence its key partners. by Germany as traditionally regarded are CEECs Moreover, properly handle its relationship with regional stakeholders. The CEE region CEE region The stakeholders. regional with relationship its handle properly is largely influenced by great powers. instance, For theits continues US while the presence regulatory and economic strong EU maintains a Lastly, while enhancing “16+1 Cooperation”, China needs to wisely and and wisely to needs China Cooperation”, “16+1 enhancing while Lastly, . . China should: strengthen the promotion of exemplary promotion of exemplary . China should: strengthen the Serbia Railway within two years; actively build the China-Europe land- China-Europe the build actively years; two within Railway Serbia of the sea Express Line; have successful cooperation towards the ports three seas and to accelerate connectivity amongst them. provide clearly the model of cooperation between the Belt and Road Road provide clearly the model of cooperation between the Belt and and industrial cooperation; complete construction of the Hungary- promote smooth trade flows and push forward infrastructure and push forward infrastructure promote smooth trade flows connectivity engineering; create new highlights of China-CEECs cooperation; (2) To develop even greater China-CEECs cooperation, to actively to actively cooperation, China-CEECs even greater To develop (2) experiences of business management in the CEECs, such as Huawei, in the CEECs, such as Huawei, experiences of business management the invisible regulatory barriers for should be studied in order to know investment in CEECs. the EU in the laws of various fields (even CEECs without EU membership), (even CEECs without EU membership), the EU in the laws of various fields laws relevant EU’s the know to condition necessary a is it therefore, successful the Meanwhile, Cooperation”. “16+1 of promotion the for to strengthen the knowledge of relevant laws and regulations of the EU EU the of regulations and laws relevant of knowledge the strengthen to with connected fully CEECs have The makers. amongst Chinese policy cooperation. in “16+1 Cooperation” is A third way to increase policy communication China should actively promote prominent EU Member States, such prominent EU Member States, such China should actively promote China-CEECs the in parties third be to France, and Germany as and to create greater energy for the platform. The EU is an inevitable The EU is an inevitable energy for the platform. and to create greater China- of promotion the and Cooperation”, “16+1 in factor influencing third party. Meanwhile, can be achieved through this EU connectivity observer system, to attract the EU and its Member States, international States, international to attract the EU and its Member observer system, to taking part and international organisations financial institutions Thus, in the future it is necessary to tap into the potential of local the potential of local it is necessary to tap into Thus, in the future is essential to attract third-party cooperation. It cooperation and to further open the to become part of the initiative, more stakeholders Secondly, furthering open platforms would also enhance policy policy would also enhance platforms furthering open Secondly, provides undoubtedly Initiative Road and Belt The communication. space. development and platform wide a with Cooperation” “16+1 connectivity among various platforms or mechanisms platforms various among connectivity for Security and Cooperation in Europe). China can strengthen strengthen can China Europe). in and Cooperation Security for
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Vol.XVIII, No. 66 - 2012 32 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 33 and “16+1 and “16+1 China needs to China needs to the Belt and Road Effective integration of various financial of various financial Effective integration To increase funding for CEECs scientific and academic institutions, it it To increase funding for CEECs scientific and academic institutions, would be important to establish joint centres for Chinese China. towards elites CEE of understanding the enhancing thus CEECs, studies in Cooperation”. Therefore, enterprises can tell better “Chinese stories”. Cooperation”. Therefore, enterprises can tell better “Chinese to give publicity, as they are better suited for influencing society and suited for influencing society and to give publicity, as they are better “going and investment own their connect always Enterprises media. global”, with the political significance of be forwarded by China’s enterprises and NGOs, with the Government’s Government’s the with NGOs, and enterprises China’s by be forwarded more acceptable to allow enterprises support and follow-up. It will be advocate the positive ideas of the “Belt and Road” initiative and “16+1 the “Belt and Road” initiative and “16+1 advocate the positive ideas of to and misgivings, remove mutual trust, enhance to Cooperation”, The process of publicity should expand the channels of cooperation. (4) To strengthen publicity, to insist on an “enterprises-first” strategy strategy “enterprises-first” insist on an to publicity, To strengthen (4) connectivity. and to promote people-to-people in the CEECs, insisting on market-orientation and providing financial financial providing and market-orientation on insisting CEECs, the in guarantees for bilateral cooperation. supporting the establishment of regional and multilateral international international multilateral and regional of establishment the supporting “16+1” financial company, actively financial companies. Such a of international financial institutions learning from the experiences on the financing demands of CEECs. This can be achieved by actively by actively achieved be can This of CEECs. demands financing the on of a “16+1” investment bank and discussing the establishment (3) Based on a long-term strategy, to improve the financial support support financial the improve to strategy, long-term a on Based (3) cooperation. tools of bilateral focusing support, financial and steady form lasting necessary to tools is and remove the misgivings of CEECs. and remove the enterprises, know in-depth local economic and social development development social and economic local in-depth know enterprises, emphasise a increasing local employment, demands, support and mutual benefits, with openness, inclusiveness cooperative spirit enterprises should work by international rules and market rules, focus rules, focus rules and market by international should work enterprises of Chinese accountability international social of on the establishment enterprises are pioneers and pacesetters. Enterprises need to focus to focus need Enterprises pacesetters. and are pioneers enterprises culture, in the fields of various countries with on communication investment, status of overseas on the principal etc. Based education, In the process of “going global”, it should be established that that established be it should global”, “going of process In the http://news. http://politics. . . ) is Professor, Senior Research Research Senior is Professor, ) , [online] March. Available at: , [online] March. , [online] 6 November. Available at: , [online] 6 November. Xinhuanet People [email protected] ( people.com.cn/n1/2016/1106/c1001-28837894.html xinhuanet.com/politics/2013-03/24/c_124495576.htm European Economic and Trade Forum and delivered a keynote and delivered Trade Forum Economic and European speech. Social Sciences. He is also the Director of the Beijing Office of China-CEE Institute in Budapest. European Studies as well as the Director of the Secretariat Secretariat the of Director as well as the Studies European Office of 16+1 Think Tanks Network, Chinese Academy of Liu Zuokui and Eastern Central of Department the of Fellow and Director Xinhuanet, 2013. Xinhuanet, People, 2016.People, - Central and Eastern the 6th China attended Li Keqiang Bibliography
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Vol.XVIII, No. 66 - 2012 34 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 35 Articles
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China’s Belt and Road Initiative, China-CEEC, connectivity, Latvia Latvia connectivity, Belt and Road Initiative, China-CEEC, China’s KEY WORDS: Latvia, are engaged in a balancing process of potential economic benefits and strategic implications implications process of potential economic benefits and strategic in a balancing Latvia, are engaged of the 16+1 and Belt and Road initiatives. synergy. Connectivity is an important and promising principle of both initiatives and transcontinental Connectivity is an important and promising principle of both initiatives and transcontinental synergy. infrastructural linkages are especially high on the agenda. Mutually beneficial progress, however, Central and Eastern European countries, including times of uncertainty, must yet be achieved. In the initiatives provide engagement on a large scale, it is challenging to achieve the task of achieving scale, it is challenging to achieve the task of achieving the initiatives provide engagement on a large and interests in the context of a diversity of visions and a synergy between a variety of stakeholders initiatives complicates furtheragendas. The strategic dimension of transcontinental of the building The article analyses China’s 16+1 and Belt and Road initiatives from Latvia’s perspective. Although perspective. Although Belt and Road initiatives from Latvia’s 16+1 and The article analyses China’s Abstract 16+1 and Belt and Road Initiatives 16+1 and Belt and Andris Spruds and Interests: Latvia’s Perspectives in Perspectives Latvia’s and Interests: Towards a Balanced Synergy of Visions of Synergy a Balanced Towards ISSN 1848-5782 1848-5782 ISSN UDC 339.92:327(474.3:510) DOI 10.1515/cirr-2017-0006 CIRR XXIII (78) 2017, 37-56 XXIII (78) CIRR activities is abundant (Lanteigne 2016; Carver 2016; Tan Li, Larry D. Qui D. Larry Li, 2016;Tan 2016; Carver (Lanteigne activities is abundant The paper is based on a growing number resources. of Scientific scientific and literature analytical on China’s international ambitions and must increasingly take into account both the strategic implications of the 16+1 and Belt and Road Initiatives. economic benefits and concrete practical steps and achievements. The last part of the paper paper the of part last The achievements. steps and practical concrete times initiatives. In transcontinental dimension of strategic analyses the including Latvia, countries, European Eastern and Central uncertainty, of a number of aspects, the main attention here is on the developing the is on here main attention aspects, the of a number as they can readily economic and infrastructural linkages, demonstrate both the opportunities and constraints to the synergy between a variety between synergy the to and constraints opportunities the both second section elaborates on the of stakeholders and interests. The connectivity may embrace important principle of connectivity. Although The paper is structured corresponding to the above questions. The diversity the charting task of challenging focuses on the paper the part of first It outlines initiatives. two involved in the interests visions, agendas and of strategic context for the 16+1 and Belt and Road Initiatives? strategic context for the 16+1 and and Central and Eastern European countries in general, and Latvia in in general, countries European and Eastern and Central particular? How is connectivity, as one of the major declared objectives and implemented? What is the of the two initiatives, being deliberated several research questions must be addressed: Who are the stakeholders several research questions must China in an intensifying interaction between interests and what are their The article will analyse China’s two initiatives towards Central and Eastern initiatives towards Central will analyse China’s two article The this goal achieve to Latvia’s perspective. In order from and beyond, Europe an appropriate moment to reflect and assess 16+1 and the Belt and Road Initiative. prospects of both the developments and was also considered as an opportunity to take economic and diplomatic and economic take to opportunity as an considered was also Road and China’s ambitious Belt and 16+1 partnerships the of advantage Initiative (Kučinskis 2016). At the same time, the summit in Riga provided engagement and mutual trust-building with China. The gathering of gathering The China. with trust-building mutual and engagement countries and Eastern European and Central from China representatives in November 2016 became a formative and symbolic experience for for experience and symbolic a formative became 2016 in November was Hosting the summit with China. of its relationship the context Latvia, in country’s the deepening and as extending Latvia in framed and perceived The Summit of China and Central and Eastern European countries in Riga in Riga countries European and Eastern and Central of China Summit The
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Vol.XVIII, No. 66 - 2012 38 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 39 (Jakoby 2016; Kaczmarski 2016; Jakobowski 2015; Szczudlik 2016). 2016; Jakobowski 2015; (Jakoby 2016; Kaczmarski
mental re-mapping of geographic space and has already gained the space geographic mental re-mapping of connectivity and inter-civilizational engagement, image of a grand The initiative aims to contribute to the creation of an embracing, inclusive, the creation to contribute initiative aims to The Initiative has facilitated a Road Belt and The community. pluralistic and and infrastructural endeavour on the scale envisaged by China’s Belt and the on endeavour and infrastructural win-win the is based on West the towards Initiative. China’s opening Road 2016). Keqiang (Li benefit and respect understanding, mutual of philosophy A strategic vision is indispensable for a transcontinental, inter-civilizational, a transcontinental, is indispensable for vision strategic A Managing diversity: visions, agendas and interests visions, Managing diversity: regional initiatives has been carried out under the auspices regional initiatives has been carried of the Latvian and Sprūds 2016). Institute of International Affairs (Andžāns and the wider region (Andrijauskas 2015). Analysis in, and on, Latvia in the in Latvia on, and in, Analysis 2015). (Andrijauskas region wider the and necessitates and picture regional this into fits initiatives China’s of context research activity research. Most in Latvia on China’s global and further 2016a; 2016b). The research in the Baltic states the implications for motivations and the on China’s thoroughly Baltic countries essentially reflects region and constraints for synergies with China’s various opportunities Moreover, initiatives (Liu Zuokui have also been discussed by Chinese counterparts 16+1 format into a wider context. Among the CEE countries, Poland has the CEE countries, Among 16+1 format into a wider context. of China’s in assessment resources increasing capacity and demonstrated European and Eastern Central and activities, including in the strategy regional expertise on relations with China in Central and Eastern Europe on relations with China in Central regional expertise These islands and place the look beyond bilateral are forming. interaction and scope of research findings on Central and East European countries and unevenly spread among limited remains rather relations with China At the same time, “islands” of institutions in the region. the countries and place, and perspectives of the Central and Eastern European countries European and Eastern Central of the perspectives place, and vis-à-vis ambitious China’s initiatives The distribution is fragmentary. more research research focused specifically on China’s “going out” strategy is rapidly 2016; Wang Wang 2015; Hongying Kratz and (Godement increasing role, analysis of the the 2017). However, Zhou Ghiasy and Jiayi Yiwei 2016; and and Ying Xue 2016). With the advent of the New Silk Road idea, scientific
. China’s Zuokui 2016a) Martyn-Hemphill and Morisseau 2015). and Morisseau Martyn-Hemphill Road initiative emerged soon (Standish 2014). The uncertainty of the US of the uncertainty (Standish 2014). soon The Road initiative emerged The importance of and adherence to the Trans-Atlantic dimension initially Trans-Atlantic the to and adherence importance of The by the promoted Silk Road New the of concept the in its presence found United States (Starr 2007: 5-32). However, the limitations of the US New Silk and business thinking and agenda (Andžāns 2013: 9-29). geographic and designed limits of the immense the to its connections of extension and network existing the project. Commercialization of Latvia’s diplomatic of China and India increasingly entered economies participation in this transcontinental supply endeavour motivated Latvia’s motivated supply endeavour participation in this transcontinental to think and act beyond the decision-making and business community to Afghanistan via Russia and Central Asian countries. Although Latvia’s Although countries. Asian Central via Russia and Afghanistan to 2009 limited period of time from a rather visible lasted role in the Network until 2013, and political it had considerable conceptual implications. The of transportation lines, launched and developed above all by the United launched and developed above all by the lines, of transportation States, to supply (Rikveilis both its own and allied 2012: troops in Afghanistan and dynamic supply routes central most the of one into 86). Latvia grew Northern Distribution Network became an important catalyst for opening for catalyst became an important Network Distribution Northern to the East. In 2009 Latvia started to play a significant role in this network Latvia’s active engagement with Asian countries essentially Latvia’s with began with active engagement The Distribution Network. Northern active participation in the country’s the trajectory in its opening to the East in general, and China in particular, during the last decade. agenda. However, the complexity and challenge to harmonising the and challenge to harmonising complexity the agenda. However, variety of visions, been and interests at play has apparently agendas has experienced a multifaceted process. Latvia the unachievable in are in Central and Eastern Europe. Central and Eastern Europeans see Europeans Eastern and Central Central and Eastern Europe. in are business and political China’s on appear jointly to opportunity their as this in the 16+1 of the wider perceived as an integral part format may be Belt and Road Initiative and more ambitious (Liu and 16 of them involves allegedly 65 countries, Belt and Road Initiative A grand design or grand dream clearly helps to establish a normative establish helps to clearly dream grand design or grand A basis to drive forward the concrete initiatives and projects. Cooperation an emergence of China on the country’s mental maps and political and political and maps mental country’s the on China of emergence an years ( agenda in recent business mutual enrichment. Latvia has not been an exception here, experiencing experiencing here, an exception been has not Latvia enrichment. mutual
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Vol.XVIII, No. 66 - 2012 40 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 41 2015). Hence, the region has region the 2015). Hence, Jakobowski and interests, relations and affiliations. Most of the countries are members members are countries the of Most affiliations. and relations interests, and The Riga Summit pinpointed diversity within the 16+1 format. The Central The Riga Summit pinpointed diversity within the 16+1 The format. and capacity, perceptions vary in terms of size countries and East European and, indicatively, an EU-China common platform (Riga Guidelines 2016). platform (Riga and, indicatively, an EU-China common This has been a skilful endeavour to engage all three. in Ukraine, a common stance on foreign policy has been deemed of deemed been policy has foreign on stance common a Ukraine, in in summit The “frontline”. the on country the for importance paramount initiative Belt and Road 16+1, the the among synergy Riga emphasized that the 16+1 of the Union. Latvia format also includes non-members has Russia’s aggression of context the In situation. the sensitivity of the grasped relationships, other EU members and the European Commission have EU relationships, other diplomatic of common standing and perceived 16+1 as a fragmentation fact by the complicated policies. This has been investment and trade their membership in the 16+1 format. This is the Although China. with engaging EU the within institutionalized formation first and only regional, states have developed intensive bilateral of larger member a number Central and East European countries have had their own challenge with challenge own have had their countries and East European Central and instructions (Kaczmarski and (Kaczmarski and instructions for large at Europe and EU the into backdoor certain a become arguably China’s political and business interests. Central and East Europe has been perceived as an “outskirt” of the perceived as an “outskirt” Central and East Europe has been European Union, which is obliged requirements to follow the Community’s European Union. This has added to the importance of the region in the in region the of importance the has added to This Union. European a window become may presence regional whose Chinese, the eyes of hand, other the On EU. the with relations shape to them for opportunity of promoting synergy in the context of the 16+1 format. 11 synergy in the context Central and promoting East of the the format have become members European countries of European necessities have provided another dimension to the somewhat somewhat the dimension to necessities have provided another European and agendas and visions variety of a reconciling of task challenging major mainland routes in Eurasia (Fallon 2015: 140-147), the evolution and evolution the 140-147), 2015: (Fallon Eurasia in routes mainland major noticeable. positions become and its partners’ turn of Latvia’s pragmatic context of China’s own Silk Road thinking, motivated Latvia, alongside Latvia, alongside motivated thinking, Road own Silk China’s of context Taking 2012. in established 16+1 of format the join to Lithuania, and Estonia developing in presence US limit to objective implicit China’s account into initiative and the emerging prospective of economic opportunities in the in opportunities economic of prospective the emerging and initiative 2016). Pralea (Andžāns and Bērziņa-Čerenkova 2017: 163-172). The trade growth was from its Baltic neighbours Latvia and of recovery facilitated by the further of intensifying trade and investment interaction. Since the inauguration of inauguration the Since interaction. investment and trade intensifying of the 16+1 format in 2012, Latvia-China trade has increased considerably (Jitaru and patterns regional general follow the Latvia, including Baltic countries, The considerable and increasing trade deficits create some concerns and countries European Eastern and Central the of part the on reservations 65 USD billion trade with its Central and East European partners in 2015 and East European partners its Central with 65 USD billion trade exceeded for the first time the trade with neighbouring Russia, which has However, it must be added that partner. been a traditionally close trading and trade and aim to make trade and investment relations one of the and investment relations one and trade and aim to make trade points in 16+1 (Medium Term Agenda cooperation” most dynamic growth 2015). considerably. Trade and investment has already increased China’s and Eastern European Countries, or Suzhou Guidelines, have underlined Guidelines, Suzhou or Countries, and Eastern European investment mutual facilitate CEECs will further and “China that intention the important. At the same time, economic connectivity has also become one has also become connectivity economic same time, the At important. and Belt and Road Initiative. 16+1 format the both goals of primary the of between China and Central The Medium Term Agenda for Cooperation Connectivity has become the defining feature of China’sis engagement Road initiatives. Inter-civilizational and people-to-people modern Silk Economic and Infrastructural Connectivity Infrastructural Economic and interests and increasing connectivity. interests and increasing governmental institutions - occasionally institutions - occasionally among themselves for compete governmental diversity becomes both of Management and resources. access, attention a challenge and reflection of an ever-growing web of linkages, mutual phone number for Central and East Europe, there would not be a single a be not would there East Europe, and Central for number phone non- businesses, - governments, the stakeholders Moreover, response. EU integration: monetary union. Poland is the only country from the region region the from only country is the Poland union. monetary integration: EU Infrastructure Chinese led Asian member of the a founding to become asks what is the Kissinger and paraphrases Henry Bank. If one Investment of the EU and NATO. Five states have decided to integrate into the core of core into the to integrate decided have Five states NATO. EU and of the
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Vol.XVIII, No. 66 - 2012 42 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 43 small sizes of the countries, in a geopolitically challenging environment, challenging in a geopolitically countries, the small sizes of side appears to be rather limited. Moreover, the Baltic counterparts are the Baltic counterparts limited. Moreover, side appears to be rather just starting to gain knowledge of how to build trust and make concrete relatively The with their Chinese partners. steps towards cooperation from China to the Baltic countries has proven to be a challenging a be to proven has countries Baltic the to China from on the Chinese of the region and experience The knowledge endeavour. possessing intellectual capital, providing a professional workforce for providing a professional workforce possessing intellectual capital, technologically R&D or establish regional businesses with a potential to considerable investment attracting However, advanced business centres. Mutual investment is slowly following a positive trend. The Baltic a positive trend. countries Mutual investment is slowly following in developing and have also been willing to advertise their performance foundational to more intensified cooperation in the future (Latvian Ministry (Latvian future the in cooperation intensified more to foundational of Economics 2016). with entrepreneurs, set up a fair pavilion set and, indicatively, with entrepreneurs, established a representative office in Ningbo. These activities can be perceived as has been played by Latvia’s Investment and Development Agency. This Agency. and Development Investment played by Latvia’s has been and supporting foreign investment agency, responsible for coordinating engaged actively disseminated information, has cooperation, trade and specifically tailored fair for Central and East European countries. Latvia to motivate its country’s the opportunity has actively taken advantage of businesses and promote its goods in China. In this process, the major role most visible results, China’s International Consumer Goods Fair in Ningbo in Fair Goods Consumer China’s International visible results, most in a the region products from advertise the has become a platform to integral part of strengthening economic connectivity. The Belgrade The connectivity. economic strengthening of part integral Guidelines of initiatives and introduced a number of 2014 encouraged the of one Guidelines 2014). As links (Belgrade trade mutual promote to Trade promotion and increasing mutual awareness has become an awareness has become and increasing mutual Trade promotion Although Latvia still faces a sizeable trade balance deficit with China, an interest to advance mutually beneficial trade relations between the two remains strong (Kučinskis 2016). sides apparently provided provided access for Latvia’s fish and dairy products to China’s markets in cooperation. upgraded dynamic of positive the demonstrated 2015, has look increasingly to the East to diversify to diversify East to the increasingly look Latvia its markets. has successfully doubled Latvia’s by exemplified market, China’s to access wider a gained has which agreement, The years. China in recent to volumes export a profound economic recession. Moreover, Latvian businesses began to began businesses Latvian Moreover, recession. economic profound a (Medium Term
make fresh contribution to Eurasian connectivity.” make fresh contribution Agenda 2015) “The Participants will work to between air the in and sea at land, on network connectivity reinforce a safe and China and Europe, efficient in conjunction with key transport passages, linkages and projects, and jointly build the New Eurasian Land This way, the Participants hope to Bridge Economic Corridor. Initiative has contributed to thinking about transcontinental Initiative has contributed to thinking about transcontinental Baltic economies. The modern Silk Road idea and engagement Baltic economies. The modern Silk Road idea and engagement and with China has grasped the imagination of decision-makers Road the business community of the Baltic nations. The Belt and international business partnerships with the three Baltic countries. international business partnerships with the three Baltic countries. The transport sector has been a major source of revenue to the region’s comparative advantages such as favourable location such as favourable location region’s comparative advantages well- Their logistics. and transit in experience considerable and has provided a basis for developed port and railroad infrastructure Latvia, Estonia and Lithuania have traditionally emphasized the have traditionally emphasized the Latvia, Estonia and Lithuania for Central and East Europe being a hub, bridge, and gateway gateway and bridge, hub, a being Europe East and Central for between the East and West. Regional projects contribute to both complementarity and competition. placing nationally advanced infrastructural projects on a common common a on projects infrastructural advanced nationally placing and businesses see the potential agenda. The region’s governments Central and East European countries have already been actively actively been already have countries European East and Central China and its Central and East European partners: and East European partners: China and its Central Belt and Road Initiative and 16+1 formats. The Suzhou Guidelines of 2015 2015 Guidelines of Suzhou The and 16+1 formats. Belt and Road Initiative for corridor Eurasian transport the of importance the clearly prioritized the ‘hardware’ of transportation infrastructures and ‘software’ of a formal and ‘software’ infrastructures transportation the ‘hardware’ of been at the heart of the modern framework has and informal regulatory between the to the synergy contributes Connectivity Silk Road vision. The infrastructural connectivity of the East and West has become become has West East and the of connectivity infrastructural The of The development engagement. and mutual interest of centrepiece direct linkages. Hence, the political, the political, Hence, linkages. direct and increasingly institutional societal, fruits. yet to yield its economic investment has business apparently dampened enthusiasm for immediate cooperation and cooperation for immediate enthusiasm dampened apparently
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Vol.XVIII, No. 66 - 2012 44 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 45 North Corridor in the CEE region, its economic value for the Baltic Baltic North Corridor in the CEE region, its economic value for the countries and its regional counterparts is not clear. regional policies such as the EU Strategy for the Baltic Sea Region Region regional policies such as the EU Strategy for the Baltic Sea (Bērziņa-Čerenkova and Sprūds 2017). Although the a South- connectivity idea could contribute to the development of Three Seas representatives underlined the importance of the synergy between representatives underlined the importance of the synergy between EU and framework, 16+1 the under aspiration connectivity regional have apparently been perceived in China’s approach in the wider in China’s approach in the wider have apparently been perceived Sea and Baltic Sea connectivity. context of Black Sea, Adriatic China’s Indicatively, during the Transport Ministers’ meeting Chinese counterparts have emphasized inter-regional cooperation inter-regional cooperation Chinese counterparts have emphasized The Baltic Sea ports in promoting a mutual interconnectedness. hidden a diversity of approaches and interests. Implicit dilemmas and interests. Implicit dilemmas hidden a diversity of approaches wider between synergy and balance right the find to how on exist interests and approaches. regional, national and intra-national The overall support for intensifying infrastructural connectivity has infrastructural connectivity has The overall support for intensifying investment, or regional customer and executive centre for a major major a for centre executive and customer regional or investment, of transportation flows through the Chinese company, or increase a success. region, would be deemed as being integrated into the Belt and Road transit and distribution distribution and transit Road and Belt the into integrated being of attracting Chinese investment in networks and its expectations A green-field or port infrastructure infrastructure and transportation. cargos and implementation of joint investment products in transport transport in products investment joint of implementation and cargos and logistics” (Ozoliņš 2016). Latvia has expressed its ambitions of was held in Riga in May 2016. The country’s officials reiterated officials reiterated in May 2016. The country’s was held in Riga the 16+1 format as “a New Silk Road initiative and support for the attraction of new for practical cooperation, significant platform on Logistic Cooperation under the Ministry of Transport (CEEC- under the Ministry on Logistic Cooperation Ministers’ meeting 2017). The first 16+1 Transport China Secretariat transport diplomacy. Latvia succeeded in becoming a coordinating coordinating a becoming in succeeded Latvia diplomacy. transport Suzhou the at decided was It format. 16+1 the in logistics for country Secretariat that Latvia would set up the CEEC-China Summit in 2015 Latvia arguably has been most active among the Baltic nations in nations in among the Baltic most active has been Latvia arguably a concrete platform to turn ideas into some concrete projects. But But projects. concrete some into ideas turn to platform concrete a size also entail relatively small States and of the Baltic the location are yet to be seen. results so concrete some limitations, Eurasian transportation corridors. The 16+1 platform has provided provided has platform The 16+1 corridors. transportation Eurasian , which plans to connect , which plans to connect Rail Baltica Hence, Latvia’s regional connectivity hub ambitions in the context context Hence, Latvia’s regional connectivity hub ambitions in the to be of the Belt and Road Initiative and the 16+1 format continue in the making. transportation sector, and direct air connection between Latvia Latvia between connection air direct and sector, transportation be developed. to are yet but deliberated been have and China, Participation of China’s companies in the construction of this this of construction the in companies China’s of Participation project has been discussed without the agreements being finalized air the in cooperation of ideas the Similarly, 2016). Course (Baltic legislative and regulatory framework creates strict and transparent creates strict and transparent legislative and regulatory framework environment. business competitive highly a in conditions tender This EU supported project provides prospects for the infrastructure and potentially profitable business both investment opportunity companies. At the same time, the EU developing and construction the three Baltic countries with a fast-speed European size railway a fast-speed European size railway the three Baltic countries with system, has been an attractive large-scale infrastructural project. directions. Chinese businesses have demonstrated their interest have demonstrated their interest directions. Chinese businesses in large-scale infrastructure projects in Central including the Baltic region. and East Europe, The potential for China’s cooperation with Latvia, Estonia and with Latvia, Estonia and The potential for China’s cooperation could proceed in multiple Lithuania in infrastructural connectivity intra-national competition has actually made it challenging to speak to speak it challenging has actually made intra-national competition national level. with a single voice even on a authorities of the largest Latvian ports of Riga and Ventspils have have Ventspils and Riga of ports Latvian largest the of authorities base in Latvia, the idea of developing a logistics been promoting international and with Chinese counterparts, in close cooperation by integrating its facilities into the developing distribution network distribution network its facilities into the developing by integrating Although the and expanded railway infrastructure. through existing potential exists to integrate the Baltic ports in a chain of supply and a chain of supply and to integrate the Baltic ports in potential exists has apparently 2016). Klaipeda port in Lithuania distribution (Korol a regional partner, tangible progress to become made the most context of China-led development of the Great Stone Industrial park Industrial park the Great Stone of of China-led development context considerable a country, landlocked a is Belarus that Given Belarus. in further add to, and occasionally complicate, the complex complex the complicate, and occasionally to, add further side has The Chinese News Service 2017). agenda (Baltic connectivity the in countries Baltic the with cooperation in interest its indicated The intra-regional and intra-national dynamics and competition and competition dynamics and intra-national intra-regional The
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Vol.XVIII, No. 66 - 2012 46 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 47 for a successful Belt and Road Initiative and 16+1 China cooperation. critical links infrastructure for sustainable transcontinental transport and Western and the vision of connectivity between the Eastern corridors, Asia is essentially a precondition of heart Eurasia. Stability in the parts of The convergence of interests between China and CEE countries takes China and CEE countries between interests of convergence The of developing place in Central Asia. Central Asia is vital in the context paradigms and the interests of Central and Eastern European countries, paradigms and the interests of Central The picture is clearly mixed. including Latvia, Estonia and Lithuania. (Kaczmarski 2016). This raises questions about whether China’s geopolitical (Kaczmarski 2016). whether This raises questions about security fundamental with diverging or is actually converging agenda China shapes globalization through its various connectivity its various connectivity initiatives. The China shapes globalization through vision and unilateral combines China’s centred Silk Road concept New principles of regionalism and multilateralism approach with Western governance and regional security affairs. China is steadily and regional becoming a governance and interpretations. interests with its own formative global security actor still be unclear what the geopolitical underpinnings of China’s vision geopolitical underpinnings still be unclear what the and China’s proactive stance, strategic concepts However, are. facilitating growing economic presence are its increasing role in global China’s opening Westward’s has an assortment of motivations. It may China’s opening Westward’s has Eurasia. For Latvia, alongside its Baltic neighbours of Estonia and Lithuania, and Estonia of its Baltic neighbours Latvia, alongside Eurasia. For in a Chinese led agenda strategic assessment of their participation calculation. becomes an integral part of its strategic agenda, the countries in the region may increasingly deliberate on the the deliberate on may increasingly region in the countries agenda, the vision dimension of China’s transcontinental strategic and security of infrastructural development and societal interaction. The modern Silk Silk modern The interaction. development and societal infrastructural strategic and economic vision with both still evolving a long-term is Road 16+1 the has dominated rationale economic the implications. Although enthusiasm and interest among many stakeholders. Countries in Central stakeholders. Countries many interest among enthusiasm and of regional format the unsurprisingly have rushed to and East Europe China, connectivity and with 16+1 engagement to speed up economic The Belt and Road Initiative and Road Initiative The Belt is an ambitious vision that has encouraged transcontinental visions transcontinental Beyond connectivity and CEE: strategic dimension of of dimension strategic and CEE: connectivity Beyond Soviet space, which it apparently is willing to approach as its backyard, mixed consequences for the Initiative and its connectivity dimension. its connectivity Initiative and the for consequences mixed in it a complicated partner makes multipolar thinking Russia’s sovereign post- the assertiveness in Russia’s win-win endeavours. transcontinental The implications of the Belt and Road Initiative for Russia and its role Initiative for Belt and Road implicationsthe The of are more difficult to assess. Likewise, Russia’s strategic moves may have cooperation among a variety of stakeholders in Central Asia under the among a cooperation Belt and Road Initiative. the parties were largely solved in favour of practical and pragmatic the parties were largely solved approach may facilitate an interest-dominated Apparently cooperation. corridors essentially started in the Central Asian countries of Kazakhstan of countries Asian Central the in essentially started corridors The Network. Distribution Northern the of context in the and Uzbekistan, dilemmas values created by a divergence of interests amongst and been the top priorities on Latvia’s agenda. Latvia’s transport diplomacy Latvia’s transport Latvia’s agenda. priorities on top the been and its endeavours to play role in Eurasian transport a more important Special Representative for Central Asia (Pastore 2017:Asia (Pastore 151-162). Central Estonia Special Representative for trend during its EU presidency in the second part the intends to continue have connectivity and education security, border in 2017.Cooperation of cooperation. The presidency served as a platform to promote the country’s the promote to platform as a served presidency The cooperation. Asia. Latvia supported a comprehensive review in Central links and interests Asia, and renewal of the position of the EU’s of the EU Strategy on Central as Germany in recent years. During its presidency of the EU Council in as Germany in recent and experiences previously established common 2015, Latvia built on Latvia has had a proactive approach in Central Asia. Although one must one must Asia. Although proactive approach in Central Latvia has had a in Central Asia, Latvia’s overestimate footprint political not and economic alongside such players the country has played active role in the region an Zhou 2017: 19-28). regionally. On the other hand, the Belt and Road Initiative’s resources may and Road Initiative’s may hand, the Belt resources other regionally. On the to tighten and regimes’ proclivity deepen endemic corruption further (Ghiasy and Jiayi interdependence growing of context in the control dependence on Russia, receive an additional boost for economic growth economic for additional boost an receive Russia, on dependence more cooperate to could be motivated stability, and and socio-economic China’s overall increasing political political increasing overall China’s its and presence economic and the region. implications may have positive Road Initiative Belt and for balance their to manoeuvre to room gain more Asian countries Central has become an indispensable actor in the diverse Central Asian region. region. Asian Central diverse the in actor indispensable an become has
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Vol.XVIII, No. 66 - 2012 48 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 49 exercises remind Latvia regularly of its insecurity concerns, while cargo cargo exercises remind Latvia regularly of its insecurity concerns, while gain from constructive and pragmatic economic engagement with a with a gain from constructive and pragmatic economic engagement dilemma East European Central and this faces Latvia neighbour. large military Russian Russia. to proximity direct to due acutely more even and Road Initiative. Central and Eastern Europeans have most to lose lose to most have Europeans Eastern and Central Initiative. Road and have the most to also they but undertakings, from Russia’s aggressive members. At the same time, economics matter. Sanctions fatigue economics matter. Sanctions fatigue members. At the same time, it makes landmass territorial enormous Russia’s noticeable. is the Belt indispensable for implementing the connectivity vision of promote a post-Western world adds to the strategic dilemmas for adds to the strategic dilemmas for promote a post-Western world European Eastern and Central their especially EU, the and NATO against Russia have demonstrated even wider consensus and even wider consensus and against Russia have demonstrated Community of Russia’s dangerous understanding in the Euro-Atlantic China’s forging of an alliance to strategic behaviour. Russia and Russian assertiveness has undoubtedly alarmed Central and Eastern alarmed Central and Eastern Russian assertiveness has undoubtedly measures deterrence sanctions and Western countries. European both economic gains and political leverages in the wider Eurasian area wider the in political leverages gains and economic both (Kaczmarski and Rodkiewicz 2016). promoted closer economic cooperation between themselves, especially between cooperation economic closer promoted Russia of transport corridors through in the energy sector. Development Belt and Road Initiative of the may provide Russia in the context with military and political developments, China has ensured its predominant military and political developments, Russia and China have strategically economic presence. Moreover, partner for Russia in the so-called anti-hegemonic and multipolar world and multipolar world so-called anti-hegemonic Russia in the for partner some at arrive to far, able, so been have China Russia and approach. division Asia. While Russia of labour in Central has been largely shaping On the other hand, the picture is when accounting for more complex On the other a vital with Russia. China has become China’s relationship and strategic visions (Makocki and Popescu 2016: 47-49). The time of overlapping of time 2016: 47-49). The Popescu and visions (Makocki evidently passed. in Russian strategic thinking has integrative spaces its own integration project of the Eurasian Economic Union, including in Central Asia, and has approached jealously any potentially competitive Quite the opposite, Russia’s aggressiveness in Ukraine invoked ghosts of ghosts invoked in Ukraine aggressiveness Russia’s opposite, the Quite call for wake-up security regional was a and neo-imperialism and insecurity Russia and develops promotes Moreover, countries. many neighbouring preclude from building a wider community of mutual trust and respect. and respect. trust of mutual wider community a building from preclude cooperation in connectivity, trade and investments (Long Jing 2016: 2016: Jing (Long investments and trade connectivity, in cooperation 25-28). EU policy-making corridors (Stanzel et al. 2016). On the other hand, in hand, in EU policy-making corridors (Stanzel et al. 2016). On the other a test the absence of common voice, the 16+1 platform has become practical and thinking strategic EU’s the developing also for ground engagement. The 16+1 initiative has been perceived by some in the in the engagement. The 16+1 initiative has been perceived by some EU as China’s deliberate creation of its regional “Trojan horse” in the The 16+1 format comes into the strategic picture of EU-China relations strategic picture of EU-China relations The 16+1 format comes into the a further as both a nuisance for Brussels and dynamic test ground for human development and resilience. This creates a platform for more more for platform a creates This resilience. and development human and Zhou 2017: 45-56). coherent engagement (Ghiasy agendas converge. The EU and China are both interested in dealing China are both interested in dealing agendas converge. The EU and global and regional security with current traditional and non-traditional security, energy and environment, challenges such as terrorism, cyber regional governance. Although clearly the “rules based order” could clearly the “rules based order” could regional governance. Although of national interests, a number of be interpreted through the prism will not become a substitute for strategic vision and will not create a strategic vision and will not create a will not become a substitute for more put to need may EU The Eurasia. in like-minded the of community based global order for global and emphasis on promoting a rules not be enough. Europe is clearly placed in China’s transcontinental placed in China’s transcontinental not be enough. Europe is clearly motivating are 16+1 initiatives Road and and The Belt strategic vision. The EU-China Connectivity Platform the EU to think more strategically. China Connectivity Platform to “enhance synergies” between the “enhance synergies” between the China Connectivity Platform to Investment Plan for Europe might Belt and Road Initiative and EU’s approach to China’s connectivity drives westwards” (European westwards” (European China’s connectivity drives approach to in approach” is apparently “coherent the Union 2016). However, on an EU- of a Memorandum of Understanding making. The signing EU-China engagement adds to the complexity of the situation. The of the situation. The adds to the complexity EU-China engagement will “pursue a coherent Strategy declares that the EU EU’s new Global are caught in the crossfire of ambitions, compromises and geopolitical and geopolitical compromises ambitions, of crossfire the in caught are developments. of the 16+1 and Belt and Road Initiatives, and especially its connectivity connectivity its especially and Initiatives, Road and Belt and 16+1 the of in particular, and Baltics Europe in general Central and East priority in from the Latvian perspective. Latvians are willing to cooperate with with to cooperate willing are Latvians perspective. the Latvian from economically, and Kazakhstan of Belarus its EEU partners Russia and and agendas the visions regime. Hence, the existing sanction despite flows from Russia of mutual economic interest, perhaps even necessity necessity even perhaps interest, economic mutual of from Russia flows
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Vol.XVIII, No. 66 - 2012 50 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 51 opportunities. Yet, playing proactively at several diplomatic and business playing proactively at several Yet, opportunities. chessboards has become a matter of necessity rather than choice. initiatives. Thus, for Central and East European countries, especially initiatives. especially Thus, for Central and East European countries, small countries like Latvia, these Chinese initiatives create both challenges and further development of mutually beneficial partnerships. Latvia, alongside Latvia, partnerships. beneficial mutually of development further balance right choices of striking the faces its own Baltic countries, other in a productive engagement with China in the context of its flagship by an assortment of challenges and opportunities. The synergy of the two the of synergy The opportunities. and challenges of assortment by an initiatives becomes both a significant measurement and prerequisite for platform to the wider EU-China dialogue, and has supported the vision platform to the wider EU-China dialogue, of its and China between cooperation of prospects The Road. Belt and the and will be shaped have been counterparts European and Eastern Central cooperation with China. The Baltic States have been closely engaged in closely engaged The Baltic States have been with China. cooperation European the into have fully integrated and interaction region Baltic Sea Union. Latvia deems the 16+1 format as an important complementary Eastern European countries in Latvia’s capital 2016, Eastern European countries Riga, in November of importance the of in and understanding interest the was indicative of pro-active to facilitate cooperative efforts and extend the mutually efforts pro-active to facilitate cooperative beneficial political, economic and people-to-people engagement with and Central and China of Ministers Prime the of Summit Fifth The China. Latvia, Estonia and Lithuania, alongside other CEE countries, have been CEE countries, other Latvia, Estonia and Lithuania, alongside Eurasian Economic Union, Eastern Partnership and Shanghai Cooperation Shanghai and Partnership Eastern Union, Eurasian Economic initiatives that and institutional frameworks a few only are Organization must be taken into account. synergies must be achieved in the Eurasian space to achieve political, achieved in the Eurasian space synergies must be Union, European The connectivity. and infrastructural economic human, Positive spill-over Positive spill-over economic vision intensifying from this of engagement, and regional stability will cooperation and the depend on mutual interest ability to harmonize competing interests and find synergy.A number of a non-institutionalized cooperation work-in-progress and will by be shaped work-in-progress cooperation a non-institutionalized a dynamic has developed into 16+1 format The stakeholders. a variety of and opportunities. challenges of with a spectrum institutionalized platform China’s transcontinental connectivity initiatives connectivity initiatives China’s transcontinental obtained momentum. have and Road Initiative The Belt remains uncertainty. in times of This is a success Conclusions . , China . Riga: http://news.lv/The_ Nothern Distribution Nothern . Afterthoughts: Riga 2016 Afterthoughts: http://www.baltic-course.com/ Lithuanian Foreign Policy Review Policy Foreign Lithuanian . Latvian Foreign and Security Policy Yearbook Latvian Foreign and Security Policy Lithuanian Prime Minister Saulius Skvernelis: Minister Prime Lithuanian . China interested in investing in Rail Baltica and airBaltic in investing China interested [online] 15 April. Available at: April. 15 [online] . Riga: Latvian Institute of International Affairs. . Riga: Latvian Institute of International 2016.
Riga: Latvian Institute of International Affairs: 163-172. Riga: Latvian Institute of International http://www.fmprc.gov.cn/mfa_eng/wjdt_665385/2649_665393/ and Central-Eastern Europe: New Cooperation at Old Silk at Old and Central-Eastern Europe: New Cooperation Road. t1224905.shtml of China-Central and Eastern European Cooperation: in the Context Latvia’s Perspective. In: Jiemian, Y. and Obradovic, Z., eds. competition-battle-chinese-investments/print Available 2014. [online] 17 December. Eastern European Countries, at: eng/transport/?doc=116991 battle for Chinese Latvia in competion Lithuania should overcome investments. Baltic_Times/2017/04/20/pm-lithuania-should-overcome-latvia- and Bukovskis, K., eds. 2017. Available at: 19 February. [online] International Forum of China and Central and Eastern European China and Central of Forum International Countries I. Bruģe, A., Sprūds, In: Interests. and Values Between Policy: Foreign for Latvia. In: Spruds, A. and Potjomkina, D., eds. D., Potjomkina, and A. Spruds, In: Latvia. for Network: Redefining Partnerships within NATO and Beyond of International Affairs: 9-29. Latvian Institute Central Asia and Eastern Europe. Europe. Eastern Asia and Central September: 113-131. Bērziņa-Čerenkova, U. A. and Sprūds, A., 2017. The Belt and Road Initiative Road and Belt The 2017. A., Sprūds, and A. U. Bērziņa-Čerenkova, Belgrade Guidelines for Cooperation between China and Central and China and Central between Cooperation Belgrade Guidelines for Baltic News Service, 2017. Service, Baltic News Baltic Course, Andžāns, M. and Berziņa-Čerenkova U. A., 2017. 16+1 and China in Latvian in China and 16+1 2017. A., U. Berziņa-Čerenkova and M. Andžāns, Andžāns, M. and Sprūds, A., eds., 2016. Andžāns, M., 2013. The Northern Distribution Network and Its Implications Andrijauskas, Andrijauskas, K., 2015. China’s Economic Penetration into Post-Soviet Bibliography
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Vol.XVIII, No. 66 - 2012 54 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 55 , . Riga: Foreign Policy Foreign [online] No. 140, No. [online] 15 January. Latvian Foreign and Latvian Foreign , [online] 2 October. 2 October. [online] , . . , 5 February. https://www.iss.europa.eu/content/ . Riga: Latvian Institute of International . Riga: Latvian Institute of International ISSUE Chaillot Paper, ISSUE Chaillot Paper, LETA News Agency. Afterthoughts: Riga 2016 International 2016 International Riga Afterthoughts: The Baltic Times Latvia and the United States: A New Chapter in the Chapter New States: A United Latvia and the http://16plus1-thinktank.com/1/20161002/1207.html Riga: Centre for East European Policy Studies: 80-90. http://www.fmprc.gov.cn/mfa_eng/zxxx_662805/t1318038. . From a Cautious Beginning to a Strategic Partnership and Beyond. a Cautious Beginning to a Strategic Partnership From ed. I., Indans, In: Partnership. 29 September 2014. http://www.mfa.gov.lv/en/component/content/article/55299-the- riga-guidelines-for-cooperation-between-china-and-central-and- eastern-european-countries?Itemid=353 In: Sprūds, A., Bruģe, I. and Bukovskis, K., eds. 2017 Security Policy Yearbook Affairs: 151-162. Available at: 5 November. 2016.[online] Countries, European shtml transport ministers meeting. Leap for the Baltics? 2015. Available [online] 24 November. Eastern European Countries, at: partnership in the making? the in partnership Available at: December. china-and-russia-eastern-partnership-making M. and Sprūds, A., eds. Countries. and Eastern European Central China and of Forum of International Affairs: 25-28. Latvian Institute CEEC Think Tanks Network Research Paper Research Network Tanks Think CEEC at: Available Standish, R., 2014. The United States’ Silk Road to Nowhere. Nowhere. Silk Road to States’ United 2014. The Standish, R., Rikveilis, 2012. A., Twenty Years of Latvian-American Defence Cooperation: Riga Guidelines for Cooperation between China and Central and Eastern China and Central between Cooperation Riga Guidelines for Pastore, G., 2017. Latvia G., 2017. Latvia Asia: From VisibilityPastore, and Central to Practical Work. Ozoliņš, K., 2016. China praises Latvia’s contribution in coordinating 16+1 Medium-Term Agenda for Cooperation between China and Central and China and Central between Cooperation for Agenda Medium-Term Martyn-Hemphill, R. and Morisseau, E., 2015. Small Step for China- Giant R. and Morisseau, E., 2015. Martyn-Hemphill, Small Step for Makocki, M. and Popescu, N., 2016. Makocki, M. and China and Russia: an Eastern Long Jing, 2016. The Transition of EU’s Attitude Towards ‘16+1. In Andžāns, , . European European [online] December. December. [online] . ) is the Director of the Frontiers of Economics in China Frontiers . Understanding China’s Foreign . Understanding [online] 18 November. Available [online] 18 November. What Will China Offer the World in World the Will China Offer What the domestic and foreign policy domestic and foreign the PISM Biuletyn, http://www.ecfr.eu/publications/summary/chinas_ Washington DC: Johns Hopkins University. Washington DC: The New Silk Roads: Transport and Trade in Greater in Greater and Trade Silk Roads: Transport New The [email protected] ( Beijing: New World Press. http://www.pism.pl/files/?id_plik=22613 Trade Policy: A Literature Review. Trade Policy: A Literature 11(3): 410-438. Its Rise. at: Wschodnia (16+1). Wschodnia (16+1). Council on Foreign Relations China Analysis, China Relations Foreign on Council at: Available investment_in_influence_the_future_of_161_cooperation7204 Central Asia. Investment Investment in Influence: theFuture of 16+1 Cooperation. relations, energy and transport policies. research interests focus on focus interests research China and Central Asia, transatlantic of post-Soviet countries, University, as well as the Norwegian Institute of International University, as well as the Norwegian His Economics. Energy of Affairs and Japan’s Institute has also obtained a PhD in Political Science from Jagiellonian Political Science from has also obtained a PhD in He has been a visiting student Poland. University in Krakow, and scholar at Oxford, Uppsala, Columbia and Johns Hopkins in Central European History from CEU in Budapest, Hungary, Budapest, in CEU from History European Central in Latvia. He University of the from Relations and in International Andris Spruds also holds the He Affairs. International of Latvian Institute MA an has He University. Stradins Riga at Professor of position Wang Yiwei, 2016. The Belt and Road: 2016. The Yiwei, Wang Tan Li, Larry D. Qui and Ying Xue, 2016 Tan Li, Larry D. Qui Starr, F., ed., 2007. F., ed., Starr, Szczudlik, J., 2016. Perspektywy formatu Chiny-Europa Srodkowo- Chiny-Europa Szczudlik, J., 2016. formatu Perspektywy Stanzel, Stanzel, A., Kratz, A., Szczudlik, J. and Pavlićević, D., 2016. China’s
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Vol.XVIII, No. 66 - 2012 56 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 57 ) – the current current – the ) 走出去战略 ) into global capitalism and in the 1990s the Jiang Jiang ) into global capitalism and in the 1990s the
中国特色社会主义
KEY WORDS: Belt and Road Initiative, China, CEEC, economic cooperation, challenges comprehend the economic and political factors intertwined with its implementation. initiatives. For example, the cooperation mechanism “16+1”, with which the PRC has approached approached has PRC with which the cooperation mechanism “16+1”, the example, For initiatives. Easternand analizes Central This paper BRI. integrated under the can be (CEEC), European Countries and tries to the “16+1” China-CEEC cooperation mechanism in the context of the bigger BRI initiative, economic and diplomatic ties between countries. The primary example of this behavior is the Belt and The primaryeconomic and diplomatic ties between countries. behavior is the Belt and example of this Road Initiative (BRI). As everyof various other foreign policy plan, the BRI is an accumulation serious then the People’s Republic of China (PRC) has become the largest trading partner for more than 180 partner Republic of China (PRC) has become the largest trading for more than 180 then the People’s from 2012; in was established it proactive since extremely has been administration Xi-Li The countries. that year on, Chinese behavior in internationalof affairs has gained an ever-growing role as a forger Zemin leadership initiated the Going out policy (Zouchuqu Zhanlue, (Zouchuqu policy the Going out initiated leadership Zemin policies into actual deeds. continuation in implementing those Belt and Road Initiative is China’s full integration into the global economy and since accession to WTO in 2001 marked China’s China’s the plan. In the late 1980s Deng Xiaoping proposed to integrate Socialism with Chinese Characteristics to integrate Socialism with Chinese Characteristics the plan. In the late 1980s Deng Xiaoping proposed Shehui Zhuyi, (Zhongguo Tese The Belt and Road Initiative proclaimed by President Xi in 2013, a strategy developed by the Chinese Xi in 2013, a strategy developed by the Chinese The Belt and Road Initiative proclaimed by President government, is very important be to China but is not confined to China. In order for the initiative to on the terrestrialsuccessful it needs to be embraced by the countries in and maritime route indicated Abstract Marsela Musabelliu Five Summits, Many Challenges Five Summits, Extension to Central and Eastern to Central Extension - Sixteen Nations, Countries European ISSN 1848-5782 1848-5782 ISSN UDC 339.92:327(510:4-191.2:4-11) DOI 10.1515/cirr-2017-0007 Initiative and Road Belt China’s CIRR XXIII (78) 2017, 57-76 XXIII (78) CIRR National National
) 一带一路 the channels and modus operandi of the BRI, and how it can can it how and BRI, the of operandi modus and channels the the actually be implemented in a given group of states through identifying how the BRI can function in a non-Asian land land identifying how the BRI can function in a non-Asian are which determine to is here necessity The essential. becomes economic growth would bring more stability (Overholt 2015). and realities different very two are Asia and CEEC However, Likewise, regional in most countries; Likewise, regional consolidated domestic stability as countries realized that a focus on peace dramatically improved featuring mutual political trust, economic integration and cultural cultural and integration economic trust, political mutual featuring seeks to replicate and expand inclusiveness”. This Chinese vision Asia The economic takeoff of East Miracle. the results of the Asian mutual learning and mutual benefit as the benefits in all fields and will work to By promoting practical cooperation of the BRI… interests, destiny and responsibility build a community of shared Development and Reform Commission (NDRC News Release 2015), (NDRC News Release 2015), Development and Reform Commission openness and inclusiveness, advocates “[p]eace and cooperation, connect Asia, Europe and Africa with one single development policy, with one single development policy, connect Asia, Europe and Africa institution, the Asian Infrastructure financially supported by one government, through a Investment Bank (AIIB). The Chinese Beijing functionaries are trying to inject new vitality to these ancient ancient these to vitality new inject to trying are functionaries Beijing economic master plan that would trading routes through a new of economic diplomacy since the US-led Marshall Plan for postwar postwar for Plan Marshall US-led the since diplomacy economic of total a with countries of dozens covering Europe, in reconstruction that is happening is What people”. billion three over of population Analysis 2015), estimate that, “[…] if the sums of total commitments commitments total of sums the if “[…] that, estimate 2015), Analysis the largest program the BRI is set to become are taken into account, Chinese, Indians, Persians, Arabs, Greeks and Romans. This initiative initiative This and Romans. Greeks Persians, Arabs, Chinese, Indians, founded development, strategic new China’s of core the highlights Clover and Hornby (FT and shared prosperity. on economic progress ancient Silk Road trading routes by connecting East and West East and West trading routes by connecting ancient Silk Road Silk Road promoted the the years 1600 over sea. For and land over bringing together and Eastern civilizations, exchange of Western China’s new Belt and Road Initiative is trying to reimagine the reimagine the is trying to Road Initiative new Belt and China’s lu Introduction: The Belt and Road Initiative (yi dai, yi (yi dai, Initiative Road Belt and The Introduction:
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guided by Xi Jinping. 1 From that year on, with the shift of power in shift of power in From that year on, with the 2 the Chinese Communist Party, and 2) The modernization objective of turning China into a fully developed country by China into a fully developed country objective of turning modernization the Chinese Communist Party, and 2) The around 2049, the 100th commemoration of the establishing of the People’s Republic of China Mao Zedong as leader, followed by Deng Xiaoping, Jiang Zemin, Hu Jintao, and the fifth, Xi Jinping. Five generations of Chinese leaders after the proclamation of the People’s Republic of China starts with Chairman 1) The material objective of turning China into a “respectably well-off society” by 2021, the 100th commemoration of 2 to reclaim national pride and enhance personal well-being; to reclaim national pride and enhance personal well-being; 1 with the most foreign visits in the last three decades. President’s Xi Xi with the most foreign visits in the last three decades. President’s Chinese dream seeks to combine national and personal aspirations the “Two 100s”. a very proactive attitude in foreign Chinese leadership, we see Li are perhaps the Chinese leaders affairs. President Xi and premier policy. The Chinese Dream, he said, is the great rejuvenation of the the of rejuvenation great the is said, he Dream, Chinese The policy. is portrayed as accomplishing Chinese nation; Xi’s Chinese Dream Soon after becoming the leader of the Chinese Communist Party in of the Chinese Communist Party in Soon after becoming the leader foreign his of blueprint the become would what introduced he 2012, overall foreign policy objectives. For this it is important to know the the know to important is it this For objectives. policy foreign overall “fifth generation of Chinese leaders”, In order to better understand the BRI’s impact outside China, it the BRI’s impact outside China, it In order to better understand PRC’s the of terms in principle organizing an seek to essential is Xi Jinping: the man with a dream and plan dream the man with a Xi Jinping: transportation) as the milestone for what will be the Eurasian the Eurasian will be as the milestone for what transportation) “Economic Corridor”. The keyword for BRI seems to be infrastructure. The Chinese Chinese The infrastructure. be to seems BRI for keyword The of facilitating infrastructure (with the outcome authorities see summits and how much they actually implementation. impact upon a project’s the 16 nations of CEEC as distinct economic and social entities entities social and economic distinct as CEEC of nations 16 the political level high of significance the understanding by third, and and understand this specific cooperation mechanism between between mechanism cooperation specific this understand and analyzing by first, perspectives: different three in China, and CCEC by considering second, and policymaking; discourse leadership regional approach. The main purpose of this paper is to analyze analyze to is paper this of purpose main The approach. regional
century is not new but century is not new but st century quest for a synthesis between century quest for a synthesis between th 3 of China 2013) hear the camel bells echoing among the mountains and among the mountains and hear the camel bells echoing from the desert. It all reminds see the wisp of smoke rising me of home… throughout the millennia, various countries the along the Silk Road peoples have jointly reached of has been passed on this very a chapter of friendship that Republic People’s the of Affairs Foreign of (Ministry day...” “Shaanxi, my home province is the starting point of the is the starting point of the “Shaanxi, my home province almost can I history, on reflect I here stand I As Road. Silk environment of Kazakhstan: Nazarbayev University, in Astana. President Xi chose a foreign,neighboring country to launch his new initiative, in the most exclusive academic most initiative, in the launch his new to country Xi chose a foreign,neighboring President 3 the legacies of all under heaven, technocratic modernization and and the legacies of all under heaven, technocratic modernization an unusually turbulent 20 the two. returned as both the inheritor of an ancient civilization and as a as a returned as both the inheritor of an ancient civilization and contemporary great power in the Westphalian model. It combines the countries involved in the initiative. Kissinger (2014) argues that initiative. Kissinger (2014) argues that the countries involved in the in the 21 the rise of China into eminence has it reestablishes historic patterns. What is distinct is that China and challenge for the Chinese President. Xi starts by evoking the President. Xi starts by evoking the and challenge for the Chinese for the future cooperation of past, while tracing the guidelines From the above we can see that this initiative is the tool of a that this initiative is the tool of a From the above we can see much as it is a personal endeavor foreign policy master plan as The first time the world heard about this initiative was in Kazakhstan, was in Kazakhstan, world heard about this initiative The first time the states: President Xi in the country. He during a visit of US dollars), the New Development Bank (NBD) and the Silk Road and the Silk Road New Development Bank (NBD) US dollars), the Fund. resources into framework activities to improve exchange and exchange and framework activities to improve resources into by unfathomable These activities are upheld social relations. (more than 100 billion assets, such as the AIIB fund money related It is President Xi’s plan to associate Asia and Europe by putting by putting Asia and Europe to associate Xi’s plan It is President regard, making a comparison with the previous leader, Ferdinand Ferdinand leader, previous the with comparison a making regard, and largely risk-averse Jintao was extremely states “Hu (2016: 941), growth.” economic domestic with maintaining preoccupied China’s foreign policy was not equally dynamic in the past. In this this past. In in the dynamic not equally was policy foreign China’s
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Vol.XVIII, No. 66 - 2012 60 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 61 and principles to pursue and safeguard its national interests. interests. national and safeguard its and principles to pursue Entering the twenty-first century, China’s geostrategic relationships According to Xi (2006: 47), geostrategic policymaking “represents According to Xi (2006: 47), geostrategic policymaking “represents a country’s effort in the world arena to use geographic orientation China-CEEC partnership framework framework China-CEEC partnership history and the Chinese people” (Chi 2015: 56). history and the Chinese people” on Asia as part of a new “neighborhood diplomacy” strategy. By By strategy. diplomacy” “neighborhood new a of part as Asia on with the regional economies along building closer economic ties promises to meet the expectations of the New Silk Road premier Xi creating interdependence between China and other countries China and other countries creating interdependence between networks; and third, focusing and regions via global partnership Chi continues by highlighting also that “the initiative has three main that “the initiative has three main Chi continues by highlighting also development around the world pillars: first, spreading economic and new trade routes; second, through infrastructure investment Foreign Affairs of the People’s Republic of China 2013.). Foreign Affairs of the People’s economic ties, deepen cooperation and expand development development expand and cooperation deepen ties, economic in the Euro-Asia region… take an innovative approach and jointly the Silk Road” (See: Ministry of build an ’economic belt’ along that have excluded China in the past”. consideration on the initiative, among others, is: “…to forge closer The proclaimed Beijing export China’s excess capacity, which should enhance investment enhance investment excess capacity, which should export China’s returns and stabilize growth… Beijing is using the project to secure foreign trade relationships in response to some major trade pacts connecting China with Asia, Europe, and Africa by land and sea, sea, and land by Africa and Europe, Asia, with China connecting by encouraging its (RMB) internationalization and boost RenMinBi it will help and financial transactions. Domestically, use in both trade Chi (2015: 54) considers that “the implementation of the New of the New implementation that “the 54) considers Chi (2015: boom by infrastructure unleash a regional strategy will Silk Road Pragmatism in action - what’s in it for China? China? it for in - what’s in action Pragmatism During the Cold War, Chinese foreign policy policy foreign Chinese War, Cold the During
4 had turned away from Moscow and had no conflict, past or present, with each other. Premier Zhou knewhardest party to convince for this possible future alliance would have been Albania. that the It was easier for the Chinese premier to place Romania and Yugoslaviain the same alliance, as both of these countries 4 War, but have plenty of dissimilarities after the 1990s in economic, War, but have plenty of dissimilarities after the 1990s in economic, social, and foreign policy discourse. placed on the eastern side of the Curtain. These countries seem seem placed on the eastern side of the Curtain. These countries Cold somehow similar in their political past, especially during the memorable speech of Winston Churchill in 1946, who claimed that Churchill in 1946, who claimed that memorable speech of Winston between Europe of heart the being formed in “Iron Curtain” was an what Churchill are countries CEEC all and West, in essence East Serbia and Romania, namely the Balkans. In order to gain a better the Balkans. In order to gain a better Serbia and Romania, namely us turn to the of these nations let geographic understanding Republic and Slovakia, also known as Višegrad countries; the nine nations of Albania, Bosnia and Eastern and Southeast European Bulgaria, Slovenia, Montenegro, Herzegovina, Macedonia, Croatia, plus the People’s Republic of China. The 16 countries of the CEEC China. The 16 countries of the CEEC plus the People’s Republic of Lithuania; of Estonia, Latvia and include: the three Baltic countries of Poland, Hungary, the Czech the four Central European countries are part of a cooperation mechanism named “16+1”, which is the named “16+1”, which is the are part of a cooperation mechanism Countries European Eastern and Central 16 between cooperation strategies and immediate opening to the outside world. strategies and immediate opening paper this in analysis under countries the earlier, mentioned As of transformation and transition. While the PRC took a gradual While the PRC took a gradual of transformation and transition. reform drastic for went countries CEEC the reforms to approach The late 1980s and early 1990s were years of great social and of great social and and early 1990s were years The late 1980s After the fall of in both areas under examination. political changes faced challenges both China and CEEC countries, the Berlin Wall, regional fulcrum under Beijing’s influence, for their future interest in in interest future their for influence, Beijing’s under fulcrum regional never implemented. However, the plan was the European market. officials had already made their advances in these three countries. countries. three these in advances their made already had officials in energetic behavior time that China was engaged This was the first strong a create to intended makers policy Chinese Europe. towards are not new. The first step for an East European alliance between between European alliance step for an East new. The first are not Prime Minister was made by and Albania, Yugoslavia Romania, 1968. in Lai En Zhou Chinese presence and initiatives in Central and Eastern Europe Eastern Europe Central and initiatives in presence and Chinese are undergoing profound change”. profound undergoing are
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Vol.XVIII, No. 66 - 2012 62 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 63 As we can As we can
Table 1: CEEC general and governmental performance indicators indicators performance and governmental CEEC general Table 1: 2016?) demonstrates that the countries under analysis have still a countries under analysis have still a 2016?) demonstrates that the between rich and poor. huge gap in their population not performing well (Eurostat Statistics Explained, 2016). not performing well (Eurostat are definitely not in good shape see six out of the sixteen CEEC Bank, World (See: GINI index The their labor market. regards to with According to the latest statistics the average unemployment of the the average unemployment of the According to the latest statistics according to mainstream economics Eurozone is around 10%, and than a 15% unemployment rate is scholars any country with more economic performance of the CEEC is diverse, led by the Czech Czech the by led diverse, is CEEC the of performance economic trailed by Serbia with 0.7% growth. Republic with growth of 4.2% and countries with relatively small populations, except Poland and populations, except Poland and countries with relatively small these CEEC, the of each of GDP total the Considering Romania. some almost medium ones. The are small scale economies and As we can see from Table 1, we are dealing with a group of 1, we are dealing with a group of As we can see from Table Source: World Bank Database 2015 we will now inspect some important statistical indicators: indicators: statistical important some inspect now we will Returning to economic and social differences between the CEEC, the CEEC, between differences social and economic to Returning varies . (The World Bank, 2016?) Bank, World (The
Table 2: Economic performance indicators indicators performance 2: Economic Table as the “16+1”. Institutionally everything started in April 2011 started in April Wen as the “16+1”. Institutionally everything when This political and economic partnership is quite peculiar, no aggregation, This political partnership is quite peculiar, no aggregation, and economic the same aspects or association could embody international network investments Cooperation Mechanism of “16+1” and the pivot on “16+1” Mechanism of Cooperation prices and five with low inflation percentages. And last, Table 2 shows us that us 2 shows Table last, And percentages. inflation low with five and prices countries show very little contribution tothe natural resources of all of those their overall economic performance. Romania, and the least attractive are the FYROM and Montenegro.Romania, and the least attractive Regarding consumer prices we see 10 countries with deflation of those Regarding exports and imports (for both, services and goods) the totalRegarding exports and imports populationthe larger the population, to according mainly goes volume FDI the most attractive are Poland andthe higher this index. In terms of For example, the ease of doing business doing of ease the example, For being Estonia and the least, Albania.hugely, with the most business friendly Regarding the business and trade environment of the CEEC there areof the CEEC there environment Regarding the business and trade group.the amongst performance of levels different and uncertainties still Source: World Bank Database 2015 Source: World Bank Database
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Vol.XVIII, No. 66 - 2012 64 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 65 alliance would be established. established. alliance would be Further, the Chinese government the Chinese Further, . promotion summit was held in Bucharest in 2013. At At 2013. in Bucharest in held was summit
tourism most important outcome of this summit was “China’s Twelve this summit was “China’s Twelve of outcome most important
The second China-CEEC second The China’s contribution to the global economy and its fast economic China’s contribution to the global economy and its fast economic growth was portrayed as a successful model of development. strategy oriented only towards these 16 countries. On the other hand, hand, other the On countries. 16 these towards only oriented strategy applauded and welcomed declarations from CEEC representatives China-Europe relations”. Essentially, the hidden message here (confirmed here message hidden the Essentially, relations”. China-Europe an integral declaration two years later) is that the “16+1” is formal a in policy foreign isolated an not and cooperation, China-EU of part pronouncement of premier Wen was: “Chinese leaders hope that the two the that hope was: “Chinese leaders premier Wen of pronouncement sides will make joint efforts to inject new vitality on the development of on establishing exchange platforms a perfect working mechanism, and enhance closer specify of cooperation of cooperation, priorities most important Politically, the cultural and people-to-people exchange. would be held and a and held be would proposal on a four-point introduced In addition, premier Wen Jiabao relations within the “16+1” and deepening platform by focusing promoting promised to provide 5000 scholarships for students of these countries promised to provide 5000 scholarships for PRC; a forum on cultural cooperation in order for them to study in the establishment a US$10 billion special credit line with focus on infrastructure; on focus with line billionspecial credit US$10 establishment a missions investment promotion to the China committed to send trade and 16 countries involved in the process” release (MFAPRC News Release 2012), the main points included “… the the CEEC; and China between Cooperation for Secretariat a of creation etc.).The Central and Eastern with Cooperation Friendly Promoting Measures for European Countries”. According to the documents from the official Usually all Heads of States and decision-making personalities are present at of States and decision-making personalities Usually all Heads Infrastructure, of Minsters Trade, of summits (Prime Ministers, Ministers these emblematic significance since the prime ministersof these countries had all gathered in the same venue. never before been The first China CEEC Summit was held in Warsaw in 2012, and had cooperation was to call yearly summits where all leaders would meet in meet would all leaders where summits yearly call to was cooperation a joint session and after that, if representatives desired, meetings would to bilateral talks. proceed Jiaobao visited Eastern Europe, starting from Poland. The next step of step next The Poland. from starting Europe, Eastern visited Jiaobao Academy of Social Sciences (CASS) for this purpose. Exchange and Cooperation Center”. The Ministry of Foreign Affairs of the of Foreign The Ministry Center”. Exchange and Cooperation institution People’s Republic of China, as the comprehensive coordinating Chinese the actively support would China-CEEC cooperation, for in the CEEC and expand cooperation in science, technology, innovation, technology, science, in cooperation expand CEEC and the in establishing Tanks environmental protection; of the China-CEEC Think cooperation in infrastructure development, such as construction of roads, of as construction such development, infrastructure in cooperation railway, ports and airports on the principle of mutual benefit; creating an investment fund of US$3 billion in order to facilitate financing procedures In fact, some of the most important points of the joint declaration after News Release 2014), was the the summit (MFAPRC to “strengthen currency swap agreements; developing nuclear energy resources; promoting sustainable use of natural projects and infrastructure many other fields of common interest were highlighted,for signing Small and Medium Enterprises (SME); of promotion example: the expressed the need to formulate a medium term agenda on account on agenda formulate a medium term to expressed the need of project implementation and continuation. And again, the and connectivity, but this time besides was to enhance cooperation highlight The third summit was held in Belgrade in 2014 and the theme of was: held in Belgrade in 2014 theme third summit was and the The involved, parties All Engine”. New and Platform New Force, Driving “New while reaffirming their commitment to deepening their partnership, headline was again infrastructure. infrastructure. headline was again Hungary and Serbia to together construct a railroad between these railroad between these to together construct a Hungary and Serbia for the region. the Chinese investment framework two countries, within the concerned were investments as far as summit, previous the in As as well as support the establishment of the association of chambers chambers of association the of establishment the support as well as an agreement with this summit China achieved of commerce. During from all sides, the guidelines of the summit pledged to hold a number number a hold to summit pledged the of guidelines sides, the all from of expo an meeting; ministerial China-CEEC a including: events of investment promotion, in China; a symposium on CEEC commodities China was willing to further promote trade and investment in the in the trade and investment promote willing to further China was protectionism and limit expand cooperation order to further region. In representative who visited Romania was Premier Li Keqiang. His main His main Keqiang. Li was Premier Romania visited who representative represented CEEC which in 2013 potential of was the untapped analysis be done since more could volume. Much of China-EU trade only 1/10 this time China’s political establishment had changed and the the and changed had establishment political time China’s this
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Vol.XVIII, No. 66 - 2012 66 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 67 agricultural productivity. The “16+1” financial holding company proposed company holding financial “16+1” The productivity. agricultural claimed to be ready to build industrial and technological parks with claimed to be ready to build parks industrial and technological the CEEC, conduct cooperation on deep processing of agricultural industrialization and level of raise their countries and help these products, expanding the handling capacity of ports and extending the shipping expanding the handling capacity of ports and extending China seas and inland waterways and ports”. three of the network route geographical distribution of ports and their future development needs. development future and their ports of distribution geographical developing, using, be achieved by: better is to This increased cooperation investments; ports in cooperation supporting ports; upgrading and Interconnectivity”. The summit (MCPRC News Release 2016) aspired “… to “… aspired 2016) Release News (MCPRC summit The Interconnectivity”. in line with the Cooperation, Adriatic-Baltic-Black Seaport strengthen Sea countries”. The main theme of the fifth summit, held in Riga, “Threewas: Seas or platforms, “16+1” strives to complement and reinforce them, aiming them, and reinforce complement “16+1” strives to platforms, or between China and the 16 at enhanced and expanded cooperation to the Suzhou Guidelines (MFAPRC News Release 2015), which states: Release News Guidelines (MFAPRC Suzhou the to will important national and regional “This cooperation aim to advance projects. Instead of replacing existing bilateral cooperation mechanisms earlier were also highlighted in Suzhou. Most importantly, the idea that the idea that Most importantly, the in Suzhou. also highlighted earlier were in embedded in the China-EU Strategic cooperation for “16+1” framework was reemphasized as highlighted by the addition Agenda Cooperation and forestry; beginning cooperation on the local government level. The beginning and forestry; mentioned in the Belgrade Guidelines one year Agenda Medium Term and policymaking and policymaking approaches the CEEC; searching for better within to finance cooperation;personal enhancing exchange; intensified cooperation in the spheres of agriculture people-to-people cultural and for the coming five years and six agreed BRI the between synergy improving participation; propelling for guide upon priorities: actualizing a The motif of this summit was: “A New Beginning, New Domains, and A New and A Domains, New Beginning, New of this summit was: “A motif The collaboration for plan a speak to perspectives new three These Vision”. very important step in publicly integrating the “16+1” in the frame of the in the “16+1” the step in publicly integrating very important Li’s Railway Diplomacy”. name “Mr. what Chinese scholars BRI and Opinion 2015) stated: “Over the past three years, ‘16+1’ cooperation, just cooperation, ‘16+1’ years, three past the “Over stated: 2015) Opinion the all speed gained and journey its on out set has train, high-speed a like is a This to Suzhou”. Belgrade and from Warsaw to Bucharest way from At the start of the fourth summit in Suzhou in 2015, Premier Li Keqiang (CNON (CNON Keqiang Li Premier 2015, in Suzhou in summit fourth the of start the At Five-Year
crease their competitiveness tral and Eastern Europe should be viewed in the wider tral and Eastern Europe should be the world has changed China – and now China is beginning to change to is beginning China now and China – changed has world the aspect is abiding: As Shambaugh (2013: 317) states, “China going global will undoubtedly be the most significant development the world in 1978, to relations in the years ahead. Since China’s opening in international This diversity of views about the implications of China’s rise in global implications of the views about This diversity of rise. But one associated with that uncertainty the politics is testimony to Challenges of cooperation Challenges of cooperation with significant steps. From the abovementioned activities we can see that the plan is no longer plan is no activities the we can see that abovementioned the From has already started and has progressed but implementation conceptual, offer preferential loans for projects carried out by Chinese contractors” (Jakobowski 2015: 2). Plan for the years 2011–2015. The Plan mentions the need to acquire strate to need the 2011–2015. Plan mentions years The the Plan for gic assets in to: enable Chinese companies to in global markets; increase investments in foreign infrastructural projects; investments in Cen context of the development goals identified in the CCP twelfth Besides the direct link of this cooperation with the BRI (which is with the Besides a long-term cooperation the direct link of this development in the PRC’s establishment policy plan), internal foreign China’s direct goals of “The be overlooked. not and institutions should observers. and shared benefits. It is important to note that at this summit participants participants summit this at that note to important is It benefits. shared and (special envoys) the Greece, Belarus and from EU, Austria, Switzerland, were present as and Development, Reconstruction for European Bank mutual assistance; 2) mutual benefit and win-win cooperation; 3) openness openness 3) cooperation; win-win and benefit mutual 2) assistance; mutual and inclusiveness; 4) interconnected development; 5) joint contribution and Commercial Bank of China, the holding company is expected to raise to is expected company the holding of China, Bank Commercial and principles operations. Five commercial through global markets funds from and mutual respect 1) equality, upon: agreed also were cooperation of the previous year in Suzhou was officially established. Led by the Industrial Industrial the by Led established. officially was Suzhou in year previous the
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Vol.XVIII, No. 66 - 2012 68 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 69 actual armed conflicts in the region and the repercussions of these conflicts these of repercussions the and region the in conflicts armed actual are still unfolding in the region. institutional fragility and last but not least, corruption. Antagonism between to theBalkan countries is another issue. Perhaps it is not an existential threat werethere ago years 17 that forget not us let but mechanism, cooperation most of them are “fragile democracies”, not more than 30 years old.most of them are “fragile democracies”, system to another is never withoutTransitioning from one governance consequences. Such states suffer social instability, financial fluctuations, The next internal challenges are the governments of some of the countriesThe next internal challenges are the Especially in the Balkan Peninsula,involved in the cooperation mechanism. funded with Chinese money; but for the remaining countries there is for the remaining countries there is funded with Chinese money; but still a long way to go. for now has been the Hungary-Serbia railway, in which both countries railway, in which both countries for now has been the Hungary-Serbia showed economic and political maturity in developing the project struggle with who and how will earn the most out of the flow of Chinese the most out of the flow of Chinese struggle with who and how will earn 2014). As a consequence, (Turcsanyi the region towards investments lacking. The most successful investment coordination within the group is underlined that the 16 nations do not shape a single coalition and they not shape a single coalition and they underlined that the 16 nations do they degree, some to and, opponents as each-other see sometimes group into EU and non-EU states, into nations which are part of the which are part of the non-EU states, into nations group into EU and not. This makes it difficult to devise a Eurozone and those who are be also must It analysis. under countries the towards approach uniform the CEEC could slow down the development of projects. There are the division of the structure of the CEEC economies, differences in the First and foremost, the different stages of development for each of for each of the different stages of development First and foremost, Internal challenges Internal challenges face in its implementation and the same can be said for its extension, extension, its said for be can same the and its implementation in face a lot of plan where cooperation platform. In any cooperation the “16+1” are inevitable. are involved, difficulties countries the world”. A lot has been written on the challenges that the BRI could BRI could that the the challenges on been written lot has world”. A the Long 5 So far
6 , Kissinger (2014) describes China as ‘Conceptual’ and the Lithuania, Romania, Slovakia, Slovenia (2004); Albania, Croatia (2009). The Baltic States: Estonia, Latvia and Lithuania. Latvia, (1999);Bulgaria, Estonia, Poland Republic, Hungary, Czech NATO: accession to of order In chronologic 6 World Order 5 century, and getting this relationship right is essential for global peace is essential for relationship right this getting and century, and stability. The two states closely and, analyze every move of the other book In his new nations. with other alliance any possible new course, of the US. Some scholars (eg. Kissinger 2011; US. Some scholars Shambaugh 2013; Zhang 2012; the Friedberg 2011) firmly believe that this relationship will define the current mean that the cooperation initiative has been overlooked. International overlooked. initiative has been cooperation the that mean 21st relations at the beginning of the are marked by the most century China and bilateralin the world, that between important relationship States of America (USA). The dominant insecurities coming from the USA States of America (USA). The dominant members. of 16 are NATO out 12 countries as are security threats, not does this but Washington, from released been has statement official no From the other side of the Atlantic, the other major actor is the United satellites of the Soviet Union, and most of them experience economic satellites them experience of the Soviet Union, and most of policy in foreign factor Russian gas as an ever-present on dependence decision making. and CEEC, Russia seems to be very cautious. Most of the countries which countries cautious. Most of the and CEEC, Russia seems to be very were many Russia, notable with history long a CEEC have the of part are in foreign policy”. Another important factor to consider in this agenda is consider to factor important policy”. Another in foreign by Russian politicians Russia. No tangible declarations have been made about the “16+1”, but while the individualdealing with parties, China regrouping EU states according to their attitudes towards China. Such a Such China. attitudes towards their to states according EU regrouping the appeal strategy would weaken of Brussels and prevent its consistency the establishment and development of the China-CEEC cooperation China-CEEC of the and development establishment the to achieve a political EU is concerned that China is trying mechanism. The objective in dividing the EU countries through economic means, and must highlight here that eleven countries within the “16+1” mechanism within the eleven countries that here highlight must members. founding are them of three and EU, the of members are EU takes a suspicious (2014), attitude to and cautious argues that “the The Chinese officialstandpoint We structure. and cooperation China-EU framework the under relations is that of including the China-CEEC External challenges External
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Vol.XVIII, No. 66 - 2012 70 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 71 (Lanteigne 2013: 144). Beijing has had to adjust its European policies to take into account both complicated further and country-level decision-making procedures, Union policy by the lack of single cohesive EU foreign and often economic The challenges go both ways. Since its creation in 1993, the EU has challenges go both ways. Since its creation The visible China’s most multilateral challenges. of provide one to continued growing Chinese presence in Europe is working to expand Beijing’s power Beijing’s expand to working is Europe in presence Chinese growing through finance and infrastructure. describe China-EU relations. Le Chorre and Sepulchre (2016) Chorre name an describe China-EU relations. Le tentacles, opportunistically’ ‘Spreading the book their of chapter entire investments in Europe. They argue that the ever- to the Chinese referring The term “mutual distrust’ is often used in describing the China-US political The term “mutual distrust’ is often see it more often used in the future to relationship, however we might U.S. and the West that Beijing is ready to advance its own agenda in the region.” state-owned companies on the periphery of the EU, have not only given state-owned companies on the the to have also signaled affairs, they in European say China an indirect PRC? What is the PRC’s agenda and ulterior motives? For Poulain (2011: Poulain For motives? ulterior and agenda PRC’s is the What PRC? 6-7), “Beijing’s sizeable investments in CEEC are as much about financial by Chinese investments The leverage. be about as they could returns Finally, besides the official and unofficial discourse from outside the “16+1”, the outside from discourse unofficial and official the besides Finally, the primary issue is that of influence. What are we to expect from the difficult, if not impossible, for a European company to succeed in winning winning in succeed to company European a for impossible, not if difficult, China”. an infrastructure project in mainland a contract to build railway While This raises the question of reciprocity. or Terminal II of Piraeus. Chinese companies find an open-door environmentin Europe, it is quite of European companies and organizations. Casarini (2015: 9) claims that Casarini (2015: 9) claims that organizations. companies and European of “infrastructure works financed by China’s soft loans are carried high-speed Hungary-Serbian the case of as in the companies, Chinese out by A further discontent is circulated about the absence of long term clarity of clarity term absence of long the is circulated about discontent A further potential market the of undermining possible the plans as well as deals and assessments of these countries will also apply to the “16+1” cooperation cooperation “16+1” the to apply will also countries these of assessments mechanism. United States as ‘Pragmatic’; we will have to see in the next years if his if his years next the see in to will have we as ‘Pragmatic’; States United No’s” countries in term of area, population and the size of its economy, China China countries in term of area, population and the size of its economy, between the two continents. between the two continents. Although China is much larger than Central and Eastern European between the markets of Asia and Europe, which could give the area area between the markets of Asia and Europe, which could give the enormous potential to end up as a key point for direct exchange to China in search of investments, financial cooperation and new trade trade new and cooperation financial investments, of search in China to these moves since their geographic agreements. CEEC location favors can easily provide a connection position between East and West The CEEC, experiencing the heat of the financial crisis of 2008, turned market one, and opening to the outside world as perhaps a new forger of forger new as perhaps a world outside the to opening and one, market more, make the PRC a desirable globalization. These factors, and partner in the economic field. can be ascribed to a slow and gradual reformation of the country’s core country’s of the slow and gradual reformation a can be ascribed to a centrally planned economy to a free policy, a proper transition from The Chinese “economic miracle”, its GDP growth in double digits after the its GDP growth The Chinese “economic miracle”, decades, two just in poverty of out millions of hundreds of lifting the 2000s, essential aspect of what some scholars (eg. Tselichtchev 2012; Rosefilde of the 21st Century”. 2013) name the “Global Power Shift China’s ascent as an important factor in the international arena is the most is the arena international in the factor China’s ascent as an important Conclusions nations along the BRI route; will not try to increase its influence towards or hegemony for striving is not least, PRC not and last but nations; these dominance. and to further ease worries, President Xi has emphasized the “Three the Xi has emphasized President worries, ease further and to the affairs of internal the in interfere not will China BRI: the policy within is the final aim of this terrestrial expansion throughout the Belt and Road economic securing is that admit skeptics fail to the What countries. growth is at the core of national security policy proclaimed from Beijing Many seem concerned about what is not proclaimed in the plan; which plan; which the in proclaimed is not what about concerned seem Many
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Vol.XVIII, No. 66 - 2012 72 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 73 the global economy. Last but not least, let us remind ourselves that the BRI makes China the Last but not least, let us remind ourselves that the BRI makes China rise of the term plan for long world today with a clear in the only country approach the PRC has towards the region is just an extension of Beijing’s progress. actual foreign policy: cooperation through mutual benefit and While analyzing Chinese behavior in the region one point is vital: point one region behavior in the Chinese While analyzing Every diplomatic, political and economic exchange. commercial function every aspect of participation should be conducted through through conducted be participation should function every aspect of coordination of objectives. policy communication and the and moves at a faster pace than traditional technical assistance from traditional technical assistance from and moves at a faster pace than China-CEEC cooperation to properly a global perspective, in order for group. group. expensive less is projects of implementation regionally-led though Even of only a few years, the “16+1” platform has triggered reluctance, platform has triggered reluctance, of only a few years, the “16+1” both within and outside the concerns and sometimes discontent, with individual historical, social and economic backgrounds meet and and economic backgrounds meet and with individual historical, social state” such as with a “civilization mechanism a cooperation schedule Even in the very short lifespan China, progress is not always smooth. In a situation where 16 nation states of Central and Eastern Europe states of Central and Eastern Europe In a situation where 16 nation pragmatic because the emphasis is always on win-win cooperation win-win cooperation the emphasis is always on pragmatic because this cooperation to trade and investments. However, and easy access the same mechanism. inwards and outwards faces many challenges, pragmatic and proactive. Chinese behavior was proactive because proactive because proactive. Chinese behavior was pragmatic and and cooperation, of process entire the initiated who PRC the was it the commitment of the parties involved. of the parties involved. the commitment both as viewed be should group CEEC the in behavior Chinese The and operation. They not only express the seriousness with which Beijing is is Beijing which with seriousness the express only not They operation. and demonstrates schedule meeting the also but situation the with dealing The “16+1” cooperation framework, in which each country is an equal is an equal country each in which framework, “16+1” cooperation The interests. country’s every enhance to platform the as serve can partner, The China-CEEC summits bear compelling significance in their origin has sought to build partnership with the CEEC on an equal footing. footing. an equal on the CEEC with partnership to build sought has , , 29(4): 54-75. , 92(4): 941–957. , 92(4): 941–957. Financial Times [Accessed 10 , 15(40): 1-11. , 15(40): http://ec.europa.eu/ . [online]. Available at: [online]. . https://www.osw.waw.pl/ [Accessed 1 March 2016]. [Accessed 1 March 2016]. Commentary, OSW Centre for Centre Commentary, OSW Edition. London: Penguin Press. , [online] December. Available at: nd . International Affairs [Accessed 11 July 2016]. . 2 http://english.mofcom.gov.cn/article/
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[email protected] ( , [online] 17 December. Available at: Available December. , [online] 17 Navy in the Early 21st Century. 2016). estimate)&Code=SI.POV.GINI&Type=S&ReqType=Metadata&ddlSelectedValue=SAU&R eportID=43276&ReportType=Table aspx?source=2&type=metadata&series=IC.BUS.EASE.XQ http://www.eias.org/wp-content/uploads/2016/02/EU-Asia-at-a- glance-Richard-Turcsanyi-China-CEE.pdf Metadata/MetadataWidget.aspx?Name=GINI%20index%20(World%20Bank%20 Republic of China Republic gov.cn/mfa_eng/zxxx_662805/t1224905.shtml EU? the within horse Trojan IAS Policy Paper of Asian Studies, Eastern European Countries, 2014. 2014. Countries, European Eastern outward foreign direct investments (OFDIs), 16+1, Sino-Albanian relations and the Belt and Road Initiative. retailers and wholesalers of consumer’s goods companies in thein companies goods consumer’s of wholesalers and retailers China’s policy, foreign Chinese are research of fields Her Balkans. which analyzes Sino-Albanian Relations. Furthermore, she has 11 has she Furthermore, Relations. Sino-Albanian analyzes which holdingtrade, years of professional experience in international in one of the largestAsia for the position of Procurement Manager with a focus on Diplomatic Law. She also holds another Master ofwith a focus on Diplomatic Law. thesiswith a Xiamen University from Relations International in Law on the 16+1 cooperation mechanism. She graduated from theon the 16+1 cooperation mechanism. Political Science and obtained aUniversity of Milan (Italy) in Relations at the same university,Master Degree in International School of International Relations. Her dissertation is focused onSchool of International Relations. and Eastern Europe and particularlyChinese Investment in Central Marsela Musabelliu World Economy Department,candidate at Xiamen University,
Xu, Q., 2006. Maritime Geostrategic and the Development of the Chineseof the and the Development Xu, Q., 2006. Maritime Geostrategic The World Bank, 2016?. Available at: The World Bank, 2016?. Available at: Bank, World The Turcsányi, R., 2014. Central and Eastern Europe’s courtship with China: China: with courtship Europe’s Eastern and Central 2014. R., Turcsányi, The Belgrade Guidelines for Cooperation between China and Central and and Central China between Cooperation for Guidelines Belgrade The
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routes KEY WORDS: Baltic Sea macro-region, “One Belt, One Road” initiative, Silk Road Economic Belt, transport through the creation of formal macro-regional railway transport within the Rail Baltic project. favorable geographical position of Poland, its transport performance and advanced (in comparison transportfavorable geographical position of Poland, its performance and advanced (in comparison conditions with China, it is concluded that Poland’s to other Baltic Sea region countries) relations countries- are more suitable to promote economic integration with its closest neighbors – the Baltic case, the project that will advance the transport infrastructure of the region. This study examines case, the project that will advance the transport infrastructure of the region. This study examines in the period 2004–2015, through hierarchical cluster the situation of the railway sector in the BSR into account the Taking countries with similar trends in cargo flow turnover. analysis, to identify Thus, the contemporary macro-regional approach to the development of EU macro-regions can Thus, the contemporary EU macro-regions can macro-regional approach to the development of of formalprovide an additional impulse to the creation macro-regional inter-cooperation, via in this This article analyzes the opportunities of the Chinese initiative “One Belt, One Road”, for the articleThis the for Road”, opportunitiesOne the analyzes Belt, “One initiative Chinese the of of the objectives One as a single transportdevelopment of the Baltic Sea macro-region (BSR), cluster. of the initiative is to strengthen transport linkages from the Pacific Ocean to the Baltic Sea Region. Abstract Olga Nežerenko, Ott Koppel Silk Road Economic Belt Silk Road The Baltic Sea Macro-Regional Sea Macro-Regional The Baltic of the as an Element Cluster Transport ISSN 1848-5782 1848-5782 ISSN UDC 339.92:656(510:474) DOI 10.1515/cirr-2017-0008 CIRR XXIII (78) 2017, 77-95 XXIII (78) CIRR opportunities for boosting their economies through increasing demand increasing opportunities for boosting their economies through However, the construction of the OBOR is less likely to meet obvious meet OBOR is less likely to the of construction the However, countries Eastern European Central and the strategic resistance from offers it because Baltic countries, the especially of 2014) and (CEECs) (Liu promotion of the national currency yuan as the new regional currency. in such a clever setting as to have control over them and their political political and their over them control in such a clever setting as to have choices; 2) OBOR and commercial is seen as a tool for China’s economic expansion to new markets to benefit its industrial companies, the and is seen as an instrument for promoting China’s geopolitical and diplomatic China’s geopolitical and diplomatic promoting for is seen as an instrument expansion through investment injections into stakeholders’ economies Council of Foreign Relations 2015; Qingguo 2015; Huang 2016; 2015; Qingguo Sarvari and Relations Council of Foreign international the (2016) positions of divides the Szeidovitz 2016). Summers 1) OBOR main categories: two into intentions towards China’s community China is seen as a specific diversification tool, which is still at the planning way (European the along challenges serious many face can and stage Council 2015; Summers 2016). economic and political On the international arena, the expansion of bottlenecks, the development of trans-border transport infrastructure and infrastructure transport trans-border of development the bottlenecks, corridors and multimodal the creation of new international hubs (State the global transport network, connecting China with other continents, their continents, other with China connecting network, transport global the boosting inter- regions (including the Baltic and countries, Sea Region) transport of elimination the is on focus The cooperation. and intraregional offers them huge potential for economic development (State Council Council (State development economic potential for huge them offers strengthen to is government Chinese the by set goals five the of One 2015). coverage. Russia China, Central Asia, The initiative Europe and and brings together key symptom of the changing patterns in the global economy. In 2013, In global economy. the in patterns changing the of symptom key its grandiose initiative China presented (OBOR), “One Belt, One Road” wide international New Silk Road, which has acquired also known as the The increasing role of Brazil, Russia, India, China and South Africa (the Africa South and China India, Brazil, Russia, of role increasing The BRICS), especially that of Russia China, is and widely discussed as a Introduction
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Vol.XVIII, No. 66 - 2012 78 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 79 towards the railway transport mode. funds) to Europe will reduce its overdependence on sea transportation on its overdependence will reduce Europe funds) to (Liu 2014) and cause a shift in the international transport modal split Presently, maritime transport is still more competitive in cost and capacity and cost in competitive more is still transport maritime Presently, delivery lead time. Chinese in the in Baltic-Chinese mutual relations, but not intentions to extend, within OBOR, railway connections (via its financial global production chains. Lithuanian exports account for only 0.5% of its total export volume (World Lithuanian exports account for Bank 2017). the specialization These variations are driven from patterns of the different economies and reflect where their companies operate in Norway can be considered as major trade partners in the region for China, for region the in partners trade major as considered be can Norway 6% China were to 11% and exports China were from average imports their and China, to go exports Estonian all Latvian and 1% of 2015. Around in net importers of Chinese products. China’s share in their import structures import China’s share in their Chinese products. of importers net varies from 3% (in Lithuania) to 13% Poland and (in Denmark). Denmark, EU exports to China constituted 9.5% (imports 20.2%) of its total exchange exchange its total 20.2%) of (imports 9.5% constituted China to exports EU volume in 2015 (European Commission 2017). of the BSR are All countries Background failed to achieve its pre-crisis (2004-2006) transport sector indicators of performance. economic fluctuation affects the trade BSR crisis years, the post-global economic seven Still, after whole region. and transport activity of the China (the visits of the Dalai Lama to the Baltic countries) have resulted have Baltic countries) the Lama to Dalai visits the of China (the transport crises in national business and cases even in some or in freezing, cyclical political issues, to addition 2015). In 2008; Bochra activity (Koppel For example, politically premature decisions made by the Baltic made by the decisions politically For example, countries premature in their bilateral Russia biggest actors of with the relations 2007) (in and relations between the European Union (EU), Russia and China. Moreover, Moreover, China. Russia and (EU), Union European the between relations Baltic the between relations bilateral that demonstrates last decade the character. to be of a complex partners tend with strategic trade countries towards transport services, which strongly depend on international international on depend strongly which services, transport towards Yiwu-Riga. Kunming-Rotterdam, Harbin-Hamburg, Yiwu-Madrid, Chengdu-Łódź, Zhengzhou-Hamburg, Beijing-Hamburg, Suzhou-Manzhouli-Warsaw, ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● The geographical coverage of this study is the BSR, which consists of Poland BSR, which consists of study is the this coverage of geographical The the promotion and realization of intergovernmental (formal) cooperation (formal) the promotion and realization of intergovernmental around the macro-regional transport corridors. the development of a regular block train is insufficient, and to China (Islam trips from Europe exists the problem of the lack of return there also solution of these problems is in the et al. 2013). essential component An authors point out here that block trains between Europe and China are point out here authors as an (informal) business functioning more initiative. currently Demand for transport. In terms of competition for Chinese cargo, all of the routes the all of cargo, Chinese for competition of In terms transport. However, they can be seen as the basis for compete with each other. Belt. The Silk Road Economic the of main routes the into integration further These routes allow delivery of goods via a distributional network to network a distributional via goods of allow delivery routes These maritime on dependence Chinese reducing destination, of point the bilateral agreements with some EU countries for opening a container for bilateral some EU countries agreements with new directions: train-line in these FDI inflows reachedabout 13.1 billion USD in CEECs, whereas the special place of Poland in Chinese foreign trade policy is justified by 1.6 billion China has actively it (Jaroch 2016). USD invested to set At the moment, countries countries of the BSR have competed for a direct Chinese 2013, in result, a As project Logistics. and Transport of field the in investors with Chinese underfinanced by the public sector and the opportunity to attract foreign foreign attract to opportunity the and sector public the by underfinanced the for as a tool is seen purpose that for China from investments direct 2010, especially the in the BSR. From sector, of that transport reanimation The railway infrastructure of the CEECs has traditionally been traditionally has CEECs the of infrastructure railway The
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Vol.XVIII, No. 66 - 2012 80 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 81 level (Nežerenko and Koppel 2015; Nežerenko, Koppel and Tuisk 2017). level (Nežerenko and Koppel 2015; Nežerenko, Koppel and Tuisk growth in the region. Due to involvement of governmental stakeholders governmental of involvement to Due region. in the growth in the process of international business cooperation, the scale of benefits global expands, increasing its competitiveness in certain sectors on the the creation of formal macro-regional inter-cooperation, which would inter-cooperation, of formal macro-regional the creation revitalizing economic sector, transport development of the the promote the interconnectedness between the EU and its Eastern neighbors, EU and its Eastern the between interconnectedness the authors The also Belarus and Kazakhstan. particularly China and Russia, but an impulse to Chinese initiative can offer the that study suggest the of the EU (between “old” and “new” member countries), but calls attention but countries), member “old” and “new” (between EU the development concerning to the importance of Baltic Sea infrastructure macro-regional transport cluster, which can be promoted as an element as an element cluster, which can be promoted transport macro-regional development structure Belt. Transport Economic Silk Road OBOR’s the of within connection transport a only addresses not macro-region BSR the in The need to analyze the BSR as a macro-regional cluster is justified by the by justified is cluster macro-regional a as BSR the analyze to need The formal a create to opportunity the by and project OBOR the of accuracy raises the problem of the predominance of the business (informal) aspect the of predominance the problem of raises the of macro-regional cooperation. forecast development trends in the transport sector on the basis of its of basis the on sector transport the in trends development forecast and eliminate potential bottlenecks in cyclical and to identify character, concept The its sustainable development. may obstruct that sector the region (BSR), which helps to determine behavioral patterns of the transport to determine (BSR), which helps region it helps to economic cycle. Moreover, sector at different stages of the (Nežerenko, Koppel and Tuisk 2017; Nežerenko 2016), developed recently. developed 2016), Nežerenko 2017; Tuisk and Koppel (Nežerenko, The concept is estimate the level intended to of impact of the components services in the macro- on the demand for transport of economic cycles This study uses the concept of a formal macro-regional transport cluster transport macro-regional concept of a formal This study uses the cover countries randomly, regardless of the performance of the country’s the of performance the regardless of randomly, countries cover the in involvement and Index, Logistics Performance sector, transport and Koppel 2015). TEN-T corridors (Nežerenko basis of macro-regional cooperation by national and intergovernmental and intergovernmental by national cooperation basis of macro-regional initiatives. These initiatives can be presented as umbrella projects that countries (Finland - FI, Sweden - SE, Norway - NO, and Denmark - DK), and DK), - Denmark and NO, - Norway SE, - Sweden FI, - (Finland countries by “old” are covered countries of all these territories (GE). The Germany the on developed been have which routes, transport “planned” and (PL), the Baltic countries (Estonia - EE, Latvia - LV, Lithuania - LT), Nordic Nordic - LT), Lithuania - LV, - EE, Latvia (Estonia countries Baltic the (PL), How can the Silk Road Economic Belt contribute to the economic the to contribute Belt Economic Silk Road the can How of the BSR? development and transport with BSR countries the of bilateral relations of effect the is What in the region? China on cohesion 2. 1. China and links the country with Africa and Europe. The OBOR is not a OBOR is not The Europe. with Africa and country China and links the existing and new it includes both grid; route transport completely new routes (see Figure 1). transport route, which is based on the New Eurasian Continental Bridge Continental Eurasian New the which is based on route, transport 2) the Maritime western China towards Europe and and spreads from of area costal the at starts which route transport maritime is a Silk Road The OBOR consists of two parts: 1) the Silk Road Economic Belt is an inland Belt is an Economic Silk Road 1) the parts: two OBOR consists of The to international trade and investments, and financial cooperation. At the same time, efficiently functioning physical infrastructure is considered to program (Huang 2016). be a cross-cutting element of the The OBOR initiative is comprehensive in its scope, tying together the comprehensive in its scope, tying together OBOR initiative is The strategies, the elimination of barriers economic of national coordination Baltic countries, creating perfect conditions for positioning the region as positioning the region conditions for perfect creating Baltic countries, an element in a global supply chain. the second approach, which has great potential to bring capital to the capital to bring potential to which has great approach, second the member-states of the EU, like Poland and the “new” BSR, especiallythe to transport routes (demand-side second approach starts with impact). The industrial future attract to order in developments large-scale infrastructure Silk Road is based on New activities (supply-side impact). The and other priorities of the initiative arises. There new of development the accelerate that industrial activities based on are two approaches: the first is In strategic and ambitious infrastructure projects, the question of the Scope of research Within the study, the authors set two research questions: research set two authors the the study, Within
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Vol.XVIII, No. 66 - 2012 82 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 83 and Turkey, and arrives in Germany). (Moscow), where it will separate into two branches, one of which one branches, two it will separate into (Moscow), where Russia’sFar East, to through goes to Kazakhstan and another, northeastern China); The Central Asian High-speed Rail China (starts from northeastern Iran, Turkmenistan, Uzbekistan, of territories (Urumqi), crosses the The Eurasian High-speed Rail (starts from England (London), crosses (London), England from Rail (starts Eurasian High-speed The and Russia Germany, Poland, Ukraine the territories of France, The Northern corridor (Beijing – Moscow – Helsinki – Rotterdam), The Northern corridor (Beijing – Moscow – Rotterdam), The Central corridor (Beijing – Shanghai – Istanbul), The Southern corridor (Fuzhou – Hanoi Trans-Siberian Railway). Railway routes (Silk Route trains and ● ● ● ● ● ● ● ● ● ● ● ● Figure 1: Silk Road Routes 1: Silk Figure speed railroads planned as cross-border projects of the OBOR, known as the Asian region with Europe (Huang the main routes, that will connect 2016): China’s investments into infrastructure projects (excluding private investors private (excluding projects infrastructure into investments China’s 300 billion be about to expected years are coming and lenders) in the Relations 2015). are two high- There USD (European Council of Foreign Source: Summers 2015 of: study, consists scope of the Belt, which is in the Silk Road Economic The The development level of regional infrastructure. The development level of regional international and national core relative to positioning region’s The transport corridors. The economic power/potential of a region. The economic power/potential of ● ● ● ● ● ● BSR transport cluster must be based on the corridor approach (Nežerenko approach corridor the on based be must cluster transport BSR 2016). intensification of cooperation within international transport corridors of of a single development Therefore, network). and Core (TEN-T region the intergovernmental institutions, i.e. the recent Chinese 16+1 The i.e. the recent Format. institutions, intergovernmental and potential existing a balanced use of that would secure factor next systems, is the transport national of infrastructure the capacity of The basis of the cluster approach in the organization of the transport The basis organization of the cluster approach in the by cooperation cluster of cross-border promotion involves the sector which depends on: In order to develop the BSR as a gateway for traffic between Asia and develop the it is vital to other, the on and Europe hand, one Russia on cluster in the BSR into a formal macro-regional present transport network transport corridors. network. From this perspective, the current share of international rail rail international of share current the this perspective, From network. is low, while Germany, Finland and Norway in Denmark, transport freight in key international and the Baltic Countries are located Sweden, Poland the study to the South part of the BSR, which can offer rail connection South part of the BSR, which can the study to the EU core- the it into integrate Silk Road Economic Belt and within the Within the scope of this study, the authors’ concern relates to the to relates concern authors’ the this study, of scope the Within It is routes. to shift the focus of land transport necessary development of but due to the development of transport infrastructure already planned already infrastructure transport of development the to but due key countries. decisions of EU) and the political of the (i.e. core-corridors projects projects are planned for the long term. Its realization could take at least be will routes transportation 2016) (European Council 35 years and the relations bilateral business of expansion the of because only not adjusted As mentioned previously, the OBOR initiative is in its starting stage, and the and stage, its starting in is initiative OBOR the previously, mentioned As
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Vol.XVIII, No. 66 - 2012 84 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 85 The East-West Transport Corridor II (EWTC II): an intermodal corridor II (EWTC II): Corridor The East-West Transport Sweden, Denmark to Belarus, Lithuania, Poland, which runs from and Germany. located on the shores of the Baltic located on the shores of the Baltic the Black Sea, Sea and the the links of provides external corridor Caspian Sea. This transport Pan-European with the (via connection EU with Russia and Turkey Greece, are: corridor in the involved IV). Countries Corridor Transport Romania, Moldova, Finland, Lithuania, Russia, Ukraine, and Belarus. Corridor countries are: Finland, Estonia, Latvia, Lithuania, and Lithuania, Latvia, Estonia, Finland, are: countries Corridor Baltic, Rail Baltica, Via are: corridor the within projects Major Poland. and the Tallinn-Helsinki tunnel. corridor intermodal an IX: Corridor Transport Pan-European The of transit goods between ports which provides the transportation corridor countries are: Belgium, the Netherlands, Germany, Poland, Germany, Netherlands, Belgium, the are: countries corridor Lithuania, Latvia, Estonia, and Finland. which corridor intermodal an I: Corridor Transport Pan-European The infrastructure. road includes rail and and Finland to Poland from runs from the North Sea ports through Poland to the Belarus border, and Belarus border, the Poland to through ports Sea North the from to the Baltic countries as well as to Finland. The key project is Rail problem which will solve the Baltic and the Tallinn–Helsinki tunnel, Co- ‘Organisation for large section of the with the connected between Railways’ operation (OSJD) being 1520 rail gauge mm. The infra-structural development in a country-crossing manner, in the in a country-crossing infra-structural development Czech are: Austria, the countries corridor The context. European and Slovakia. Republic, Italy, Poland, stretches which – a railway corridor Sea-Baltic Corridor North The The Baltic-Adriatic Development Corridor – an intermodal corridor intermodal an – Corridor Development Baltic-Adriatic The region/ Mediterranean the to down Scandinavia from runs which and spatial, economic integrated supports corridor This Adriatic. 5. 4. 3. 2. 1. Road Road Economic Belt, there are five major transportation transportation as secondary can be seen BSR and the of territory cross the corridorsthat the OBOR: arteries of Taking into account the geographical scope of the study and the Silk the study and of the scope geographical the into account Taking development of physical infrastructure; (3) homogeneity in transport development of physical (3) homogeneity infrastructure; and (4) sector performance; similar behavioral patterns at different stages of the economic cycle (Nežerenko 2016). by (1) formal regulation on behalf of the EU within the European Union in the (EUSBSR); (2) homogeneity Baltic Sea Region the for Strategy The authors address the BSR transport sector on a macro-regional level as a a macro-regional on sector BSR transport address the authors The studied as a geographical cluster, macro-regional single formal transport is characterized cluster The region. in the actors transport of concentration Hierarchical cluster analysis of the BSR railway cluster analysis of the BSR railway Hierarchical sector gaps in the existing international economic architecture helping build architecture economic existing international gaps in the and developed countries. infrastructure projects for the developing the lack of public and private investment resources for the rail sector, and rail sector, the for resources private investment public and of lack the only form and logistics clusters to of transport dominant tendency the on a national level (Nežerenko 2016). Thus, the OBOR initiative fills in the and logistics market. In addition, Chinese initiatives will contribute to the to will contribute initiatives Chinese addition, In logistics market. and system, including transport BSR the of main bottlenecks the liquidation of corridor) and an informal railway cluster (based on business cooperation business (based on and an informal railway cluster corridor) macro-cluster, strong a into evolve will China) with projects common and in the global transport competitive position of the BSR providing a stable Thus, a formal cluster (based on the sharing and promotion of one rail one of promotion and sharing the (based on cluster formal a Thus, standard gauge 1435 mm), but also in intergovernmental/formal intergovernmental/formal in also but 1435 mm), gauge standard promotion of the corridor on the global level 2015). (Nežerenko and Koppel and Finland) to cooperate not only in terms of building new infrastructure of building new only in terms not cooperate to and Finland) the European by building from West Europe their isolation (to eliminate corridors – road and rail. The rail chain is of special of special chain is The rail rail. road and – to due importance corridors two EU projects: TEN-T project, Rail Baltic, and the Tallinn-Helsinki tunnel, which allow five countries of the BSR (Poland, Lithuania, Latvia, Estonia, There are two main transport modes included into the abovementioned abovementioned the into included modes transport two main are There
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Vol.XVIII, No. 66 - 2012 86 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 87 cycle, 2008-2009 the crisis represents stage, and 2010-2015 the recovery stage. 2004 and 2015 (see Table 1). The period of time was divided into three sub- three was divided into time of period The 2015 (see Table 1). 2004 and periods: 2004-2007 reflects the economic growth stage of the economic In the scope of the HCA conducted in the study, transport activity in the study, transport is In the scope of the HCA conducted between tonne-km) by railway (in handled turnover cargo in presented Koppel and Tuisk 2017). The results of the analysis are presented by a presented analysis are the of results Tuisk 2017). The and Koppel a dendrogram. hierarchical tree diagram, called final cluster structure (macro-cluster/BSR). Thus, the goal of the clustering algorithm is to join objects together into successively larger clusters, using some measure of similarity or distance (Burns and Burns 2008; Nežerenko, the identification of each object initially as a single cluster (or country). a into merged are clusters nearest two the in multiple iterations, Then, reaches the few iterations, the algorithm larger one (micro-cluster). After a finding relatively homogeneous clusters of cases on the basis of measured of basis the on cases of clusters homogeneous relatively finding lies in clustering hierarchical idea of 2006). The al. et (Tan characteristics transport activity is hierarchical cluster analysis by activity is hierarchical (HCA), conducted transport that criterion as a Ward’s method using software SPSS the of means for is a statistical method variance. HCA within-cluster minimizes the total analysis from the International of secondary quantitative data collected analysis BSR railway of the in the main tool database. The Forum Transport OBOR initiative, the focus of the research is on the rail transport sector. focus of the research is on the OBOR initiative, the statistical the based on methods research apply qualitative authors The the most isolated East part of the region is insignificant (Nežerenko and by the promoted routes transport the account into 2015).Taking Koppel under the umbrella of the EUSBSR, launched by Sweden in 2009. of the EUSBSR, launched by Sweden under the umbrella within road transport in railway and experience clustering Macro-regional transport tends to be a strong macro-regional cluster of informal maritime of informal cluster macro-regional a strong be to tends transport transport, due to numerous projects realized by business stockholders cluster, homogeneity within its members (countries) must be provided. be provided. must (countries) its members within homogeneity cluster, Previous analysis by Nežerenko, Koppel and sea However, sectors. transport different in heterogeneity of presence Tuisk (2017) confirms the In accordance with the model of a single formal transport macro-regional macro-regional transport formal of a single the model with In accordance 2603 2401 2621 1205 7291 2015 55692 14277 18453 10537 2654 1788 3260 1022 7855 2014 56241 14694 19125 10794 992 4012 9698 2249 2968 7605 2013 53590 14685 19246 714 4469 2107 2471 7653 2012 53739 14658 21495 10560 724 5491 2417 2598 8415 2011 54278 12925 21114 11447 763 2075 2835 8636 5918 2010 10054 52788 11684 12885 770 8798 1574 2731 7213 9580 5350 2009 46956 14384 905 1747 3189 7141 5236 2008 11093 62390 15676 17370 919 1633 2853 7569 7267 2007 11414 60832 16919 16360 895 9739 1633 3685 7378 9741 2006 56484 16133 14798 850 3099 7547 9892 9033 1549 2005 46864 13961 17412 2004-2015 777 2908 7667 9973 1649 2004 46478 15527 16397 10163 FI LT SE PL EE LV DK GE NO Table 1: International transport of goods by railway, million tonne-km, tonne-km, million by railway, of goods transport 1: International Table Figure 2a), crisis (see Figure 2b), and recovery (see Figure 2c). turnover of the BSR countries and to compose so called and to compose micro-clusters of the BSR countries turnover with similarities of consisting of countries in the dynamic development (see growth economic phases: economic three within railway sector the The purpose of the HCA was to identify the dynamics of the rail cargo the dynamics of identify the HCA was to the purpose of The (2017), this issue was specified and strong correlation was found between found was correlation strong and specified was issue this (2017), as into road and rail infrastructures, the GDP of the BSR and investments infrastructure. road rail and into and investments imports between well as and John (2011) confirm the cyclical character of the transport field. This cycles measured by the gross growth cyclicity with economic correlates Tuisk and Koppel Nežerenko, of research recent the In product. domestic Studies of Hätty and Hollmeier (2003), Bălan and Bălan (2010), and Franke and (2010), Bălan and Bălan (2003), Hollmeier and Hätty of Studies Results Poland and Germany. Only those parts of the countries are included in countries the parts of Only those and Germany. Poland given by the EC. the BSR which conform to the definition There are two limitations to the study: 1) the unavailabilityare two limitations to the study: 1) of statistical There data on the origin of cargo flows via CEEC countries; 2) the lack of accurate parts of of the northern statistical data on the transport performance Forum 2016 Source: International Transport
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Vol.XVIII, No. 66 - 2012 88 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 89 c) b) a) a) 2008-2009 (b), 2010-2015 (c) (b), 2010-2015 2008-2009 based based on their railway transport flows during 2004-2007 (a), Figure 2: Dendrogram representing the formation of country clusters clusters country of formation the representing Dendrogram 2: Figure decisions. In the post-crisis period, the biggest increase in cargo turnover increase in cargo biggest the decisions. In the post-crisis period, in economies whose countries by the was demonstrated (see Table 1) relatively minor fluctuations despite the economic crisisof political because of the critical character which had already lost cargo unlike Estonia, because of Bronze night and joined a more stable micro-cluster of Denmark, of cluster the left crisis, Estonia global economic the of beginning the At micro-cluster stable more a joined and night Bronze of because had demonstrated countries These and Sweden. Finland, Norway, Russian export cargo and investments inflow. Russian export cargo and investments During the economic growth period, Poland and the Baltic States growth During the economic composed a single micro-cluster and enjoyed the trade-creation effect (due to joining the European Union in 2004) via growing cargo flows of will benefit from OBOR. can be derived if Estonia is in the same micro-cluster with Poland, Lithuania with Poland, same micro-cluster is in the be derived if Estonia can and Latvia. Positioned in the same micro-cluster and unified by common Baltic States the Poland, of driving force led by the railway infrastructure, The authors assume that a positive effect from the Chinese OBOR initiative assume that The authors economic issues, but they also have to be ready for a possible issues, but slowing economic macro- the advanced gaining from in the future down of the economy regional economic cooperation. foreign direct investments markets since 2011 direct investments and 2) modest political foreign region. competitiveness of the long-term at enhancing action directed current the only manage not policymakers need economic Thus, the global economy. They point out the following specific concerns for the Baltic in the world’s exports and Sea Region: 1) its weakening position region (Nežerenko and Koppel 2015). region (Nežerenko and Koppel 2015). on BSR is highly dependent (2016) that the Ketels and Pedersen report favorable geopolitical location (in the Eurasian Land Bridge), it is one (in the favorable geopolitical location and Logistics in the Transport sector in the of the driving force-countries 2016). If investments inflow into raildevelopment, infrastructurewe can assume facilitatesthat Chinese financial economic funds can spread positive influence on the whole region via Poland. In addition to Poland’s competitiveness. During China’s reform period, the national investment national investment the period, China’s reform During competitiveness. (Huang growth economic accelerated infrastructure for program The development of physical infrastructure leads of physical leads The development expansion of infrastructure to the trade relations and to the intensificationof countries’ and regions’ essence of bilateral relations is more important for the development of a of development the for important is more of bilateral relations essence fluctuations. economic than country the for sector important strategically who composed the micro-cluster with Poland and Sweden. Estonia was Estonia Sweden. and with Poland micro-cluster the composed who unfavorable to 2010-2015 due during turnover cargo its recover unable to the that confirms fact This Russia. ex-partner transit largest its with relations the crisis period were significantly weakened – Latvia and Lithuania
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Vol.XVIII, No. 66 - 2012 90 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 91 recovery within the macro-region. especially the latter whose transport activity depends on transit activity depends on especially whose transport the latter demand. most is the Poland and Latvia, Lithuania of railway transport The vulnerable in the crisis the quickest period, also demonstrating location, but on the low share of international cargo in their rail location, but on the low share freight transport as well. the Baltic Germany, Sweden, Poland and are located in the States key international transport corridors, and more fluctuations can be countries, Baltic Poland and the of micro-cluster observed in the Denmark, Finland and Norway form the most stable micro-cluster most stable micro-cluster the form Norway Finland and Denmark, periods. The economic in all three in terms of railway transport similar geographical their based on only is not stability demonstrated ● ● ● ● ● ● cause dramatic consequences for international transport activity. In order to stay in the same micro-cluster with Poland, the Baltic countries the Poland, with same micro-cluster the stay in to order In must exclude any premature political decisions that are highly likely to development of the transport sector. The railway sector demonstrates the development of the transport within the countries analyzed: following important heterogeneities it into it the Silk Road Economic Belt as its secondary transportation artery. transportation Belt as its secondary Silk Road Economic it the it into in the cyclical only at homogeneity Cohesion in the BSR can be achieved cooperation must be based on the formation of the BSR transport cluster BSR transport of the formation the must be based on cooperation Rail approach, or within the on the basis Baltic, of the corridor to integrate position of Poland, its transport performance and its advanced relations and performance its transport Poland, of position for the promotion of economic conditions has better with China, Poland neighbors – the Baltic This with its closest countries. and transport integration lack of investment resources for the rail sector and the absence of macro- and the absence rail sector the for resources lack of investment sustainable its conditions for providing favorable cluster cooperation, the favorable geographical development. Taking into account economic The authors conclude that the Chinese initiative the Chinese conclude that The authors to the will contribute as the system, such BSR transport the of bottlenecks main the of liquidation Conclusions existing ones. this corridor has great potential for developing cost-efficientservices to in addition to delivery routes and new conditions better offering China, the BSR is the BSR relatively is low, it Rail that the obvious will Baltic make corridor the Due to and cargo. Chinese investors to attractive more region the route of Rail Baltic and its potential for clustering freight traffic volumes, Despite the fact that cargo turnover transported internationally by rail via by rail internationally transported turnover cargo that the fact Despite
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Vol.XVIII, No. 66 - 2012 92 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 93 (4): 9(1): [online]. [online]. 3(19): 30-38. 3(19): 30-38. , 40: 314–321. [pdf]. Available http://www.ecfr.eu/ Journal of Air Transport [Accessed 5 August [Accessed 25 October 2016]. [Accessed 25 October Baltic Transport Journal, “One belt, one road”: China’s road”: belt, one “One Key transport statistics. Key transport [Accessed 12 December 2016]. [Accessed 12 December China Economic Review Business and Statistics Research Methods http://www.baltic-press.com/hr007_hr360_ Journal of Air Transport Management, Transport Journal of Air [pdf] June. Available at: Available [pdf] June. http://www.itf-oecd.org/search/statistics-and- [Accessed 4 January 2016]. EU trade flows inside & outside Europe. Internal Auditing & Risk Management, Risk Management, & Auditing Internal http://exporthelp.europa.eu/ http://www.kadamar.ro/atharticles/2010-3/2010-3-2. , 17(1): 19–26. London: SAGE Publications Ltd. London: SAGE Publications http://trade.ec.europa.eu/doclib/docs/2006/september/ [Accessed 17 May 2013]. [Accessed 17 May European Union, Trade in goods with China. with goods in Trade Union, European
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37(9): 71(5): [Accessed 3 [Accessed ) is Associate http://news.xinhuanet. The World Today, World Integrated Trade World Integrated http://wits.worldbank.org/ Third World Quarterly, World Third is Visiting of Professor
) Available at: Available [email protected] ( [email protected] [online] 28 March. [online] ( [online]. Available at: Available at: [online]. Solution, 2017]. [Accessed 5 August networks of global political economy. global political of networks 1628-1643. Xinhuanet, com/english/china/2015-03/28/c_134105858.htm 2016]. November 18-20. Economic Belt and Twenty-First Century Maritime Silk Road. Silk Road. Maritime Century Twenty-First and Belt Economic University of Technology in 2006. Transportational Logistics at Tallinn University of Technology. Transportational He received a PhD degree in Civil Engineering at Tallinn Ott Koppel cooperation, published in Baltic the and Transport Telecommunication, and Transport such international journals Journal of European Studies. as of Technology in 2016. Her publications in 2016. focus on the of Technology transport field of the Baltic Sea Region and macro-regional Professor of Logistics and head of Logistics Curricula at the of Logistics and head Professor Applied Sciences. University of Estonian Entrepreneurship in Business at Tallinn University She received a PhD degree Olga Nežerenko World Bank, 2017. Trade statistics by country. statistics Bank, 2017. Trade World Summers, T., 2015. Roadmap to a wider market. Summers, T., Summers, T., 2016. China’s ‘New Silk sub-national regions and Roads’: State Council, 2015. Vision and Actions on Jointly Building Silk Road Silk Building on Jointly 2015. and Actions Vision Council, State XXIII (78) - 2017
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Chinese Belt and Road, Estonia, R&D, human capital, triadic patents, econometrics KEY WORDS: technology, and raise support for high tech startups with a strong focus on international patenting. and raise support for high tech startups with a strong focus on international patenting. technology, must go furtherMember States on filing of alia, R&D activities by focusing, inter and subsidise foreign patents such as triadic patents. such as Estonia should follow the example of countries such as Germany and adopt policies which of countries such as Germanysuch as Estonia should follow the example and adopt policies which R&D and innovation in public universities of science and focus more on increased public spending on where states like Estonia stand internationally in terms of innovativeness (and consequent where states like Estonia stand internationally in termsinnovativeness (and consequent of development, education policy and study of patent competitiveness) by conducting an econometric that small member states The authors claim policy. research and development (R&D) expenditure The Chinese Belt and Road Initiative will open new trade routes between China and the European new trade routes between China and the European The Chinese Belt and Road Initiative will open on smaller EU member states. This articleUnion (EU) and increase competition pressures ranks Abstract Simona Ferraro, Pawan Kumar Dutt and Tanel Kerikmäe and Tanel Simona Ferraro, Pawan Kumar Dutt Technological Competitiveness of Competitiveness Technological States Union Member Small European Expenditure Policy to Increase to Increase Policy Expenditure Using Patent Development, Education Development, Using Patent and Development and Research Policy ISSN 1848-5782 1848-5782 ISSN UDC 339.92:364.1(510:061.1EU) DOI 10.1515/cirr-2017-0009 CIRR XXIII (78) 2017, 97-126 XXIII (78) CIRR the Chinese Belt and Road Initiative becomes fully functional. impact of China’s exports on small and medium sized EU member states and medium sized EU member small on China’s exports impact of practices labour cost low based on predominantly are economies (whose substantial once be even more advantages), is likely to resulting and their and vehicles. Every member state (except for Germany and Finland) Germany for (except state and vehicles. Every member experienced a deficit withChina according to Eurostat (2017). Thus, the giant. In 2015 for imports and the EU was China was the EU’s top partner in EU-Chinese trade all Chinese exports. destination for largest second the machinery by dominated was Trade euro. billion 180 of deficit a saw goods The rapidly growing and transforming Chinese economy (influenced by an industrial it into convert Chinese State) has helped to the policies of the the Chinese economy. Thus, in 2015 China’s economic output exceeded the Chinese economy. (2017). that of the EU according to Eurostat output than both the EU and the US, the situation is now different. This different. situation is now the US, EU and the the both than output expansion of and great transformation could be attributed to the rapid Drawing comparisons on the basis of PPS, one sees that in 2015 GDP in the in 2015 GDP in that sees one PPS, basis of the on comparisons Drawing (US). States United the of that of was ahead EU the of states 28 member economic level of a lower has had historically China although However, EU member states stood at 67.6 percent of the EU’s GDP. EU member states stood at 67.6 Eurostat (2017) the Euro area accounted for more than 70 percent of the of 70 percent than more for accounted area Euro (2017)the Eurostat (GDP) in 2015 purchasing power in terms of EU’s gross domestic product standards (PPS). Interestingly however, the economies of the five largest (2017) are divergent incomes vary vastly states that per capita and there national attitudes towards foreign trade, inflation, etc. According to In order to understand the impact of the Chinese Belt and Road Initiative the impact of the Chinese In order to understand states that among EU member note it is important to on the EU’s economy, Mundi Index differences. economic fundamental and structural exist there them more competitive on the European market. them more competitive The Chinese Belt and Road Initiative will undoubtedly open new trade new trade open will undoubtedly and Road Initiative Chinese Belt The As stated by Geiger (EU). Union European and the China between routes (2016) it will reduce shipping goods and this will times for Chinese make Introduction
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Vol.XVIII, No. 66 - 2012 98 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 99 Organisation for Economic Co-operation and Economic Co-operation Organisation for remaining member states shows vast divergence. The authors have chosen The authors remaining member states shows vast divergence. the in situated country Estonia is a a case study. of purposes Estonia for Outside the top 5 EU economies (Germany, the United Kingdom, France, United Kingdom, the (Germany, economies top 5 EU Outside the the of social setup and economic the of picture Spain), the Italy and Estonia as a case study of EU member states with Estonia as a case study small economies (especially Estonia) can prepare themselves to meet these challenges, meet these themselves to (especially Estonia) can prepare highly innovative to low wage and cost economies from and also transition focusing on patent metrics. and competitive economies, by and Road Initiative in particular, on the economies of small and medium of small and medium economies the on and Road Initiative in particular, states these will study how authors the so doing In states. member sized EU model of innovative growth, modeled after the most successful country in model of innovative modeled growth, will study authors Finally, the and patenting). innovation of EU (in terms the Chinese Belt and the in general, economic trade impact of Chinese the consequent competitiveness). Next, the authors want to explore how want to explore the authors Next, competitiveness). consequent a themselves by adopting advance can states member small EU such consequences of the Chinese Belt and Road Initiative?” In this context, the Chinese Belt and Road Initiative?” consequences of small understand and rank where EU member want to the authors (and innovativeness of in terms internationally stand states, like Estonia, are members of the are members of of secondly, “How can the economies Development (OECD)?” And injurious term long any escape states member EU sized medium and small education policy and R&D expenditure policy when comparing small policy when comparing policy and R&D expenditure education which countries other Estonia) with on focus (with a states member EU competitiveness ranking of diverse EU member states, when compared states, when member of diverse EU ranking competitiveness internationally? Or, more specifically, the authors wantdevelopment, patent between relationship is the “What questions: to answer the research question of the paper is: how do investments in research do investments is: how of the paper question research and development (R&D) and education have specific effects on the competitiveness competitiveness through the prism of objectivity and detachment, the want to study small authors Estonia in the context states like EU member The main utilisation of patents. particularly the studies and of economic In order to overcome any underlying biases and to study the issue of issue study the to and biases underlying any overcome to order In billion (2015) which is a Union, the Patent Office was closed. After Estonia was firmly in the clutches of the Soviet Union and communism. the end of World War Two system (Hoffmann and others 2012: 535-542). In the summer of 1940, after of summer 535-542). the 2012: In and others system (Hoffmann the occupation and annexation of the Republic of Estonia by the Soviet Berne Convention for the Protection of Literary and Artistic Works in 1927. and Artistic Works Literary of Protection the for Convention Berne together force, was adopted and came into In 1937 Act a new Patent German patent the in 1938. This act accepted new Constitution with the the Protection of Industrial Property in 1924 and accepted all the rules all the accepted 1924 and in Industrial Property of Protection the and regulations conferred by the convention. Estonia also joined the website, namely that it was established of inventions, came into force in 1921 the protection and focused on in 1919. The first Patenttrademarks, patents, and models. Estonia joined the Paris Convention for Act The Estonian Patent Office provides the following information on its Background history and competitiveness in of innovation Estonian society machinery and equipment, wood (wood products), agricultural and food machinery and equipment, wood miscellaneous manufactured articles. products, mineral products and EU member states. In 2015 exports from Estonia to EU countries was 8.7 was countries EU Estonia to from 2015 exports In states. member EU to Estonia were 10.8 billion billion Imports from EU countries euros. euros. Affairs states that the main exports were The Estonian Ministry of Foreign 13.1 billion euro. Estonia’s main trading partners were Finland, Sweden, Finland, Sweden, were partners Estonia’s main trading 13.1 billion euro. other was with trade total of 80 percent Almost Latvia and Germany. to Europa (2017) Estonia’s GDP was at € 20.461 to Europa Estonia from goods of 2015, exports In EU. the of GDP the of small fraction approximately and imports were 11.6 billion euro, were approximately or Nordic state, or in the category of being developing or developed. being developing or developed. of or in the category or Nordic state, According are people. as there are as many views on this topic There information technologies, eGovernance, etc. This has also made Estonia This has also made Estonia etc. eGovernance, technologies, information and (Kerikmäe Partnership Eastern the of countries the for model role a Estonia is a Baltic debated whether Chochia 2016). often It has been Organisation, Organisation, OECD, etc. The country has undoubtedly made significant 1990s such as in new areas made deep strides the and has since progress 3 decades ago, part of the Soviet Union. Since the collapse of the Soviet Soviet the of collapse the Since Union. Soviet the of part ago, 3 decades past. Estonia recent its from break free hard to has worked Estonia Union, Atlantic Treaty North the the Euro Zone, of the EU, a member is currently north west of the EU. It has had a chequered history and was, until less than less than until and was, history had a chequered It has of the EU. west north
XXIII (78) - 2017 Vol.XVIII, No. 66 - 2012 100 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 101 a. Measuring technological changein society with the use of patents When it comes to the realm of studying relationships between patent When it comes to the realm of studying relationships between can policy, one expenditure policy and R&D education development, 2011). thankfully access detailed empirical literature in this field (Zhang Literature review Literature patent systems, rather than taking on new, large projects of their own. patent systems, rather than taking the field of industrialproperty. Regarding the future, the Estonian Patent Office is focusing mostly on efficiency and integration with international protection was harmonized with the requirements of the EU. In addition to of the EU. In addition with the requirements was harmonized protection the Republic of Industrial Property, the Paris Convention for the Protection in treaties various multilateral international to Estonia is also member of The Estonian Patent Office states on its website that it was re-established in December 1991. On 1 May 2004, Estonia acceded the Republic of the Estonian legal system of industrial property that, to the EU. Before with industrial revolutions were lacking (Pitta 1992: 499). were lacking (Pitta 1992: with industrial revolutions of the world had economically the Soviet states had economically developed while of the world had it era, Soviet the of last stages the during stagnation economic suffered associated which are resources and experience was clearly visible that states including Estonia did not wish to have any association with the have any association to wish Estonia did not states including rest As the their own. move ahead on Soviet states and tried to former independence in the summer of 1991. Although the Russian in the summer of 1991. independence republic Although new patent laws subsequently adopted which were similar of to those Baltic the laws, patent and American Convention Patent European the had enjoyed exclusive ownership previously. However, the Soviet Union their declared Republics Soviet several and thereafter soon disintegrated under the banner of perestroika. Intellectual property rights (IPRs) in the (IPRs) rights property Intellectual of perestroika. banner the under in 1991, to be westernised were sought Soviet Union so that individuals, which of the Soviet State own IPRs, instead could corporations, including In the late 1980s, Soviet President Mikhail Gorbachov introduced reforms reforms introduced Gorbachov Mikhail President Soviet 1980s, late the In the uniformity of the patent systems in these countries, or the amount of amount the or systems in these countries, patent the of uniformity the in this regard. Patent statistics, by their very nature, lend themselves well Patent statistics, by their very nature, in this regard. to the act of comparing a wide spectrum of, not just industries, but also basic question regarding the upon Necessarily, this would hinge nations. inventive nature and consequently leading towards innovation. Another towards innovation. leading and consequently inventive nature factor of significance is the fact that there is no dearth of copious data and consequent evaluation of the output, which is linked to our study. our is linked to which output, the of evaluation and consequent statistics accidental. Patent statistics is not patent use of the Of course can be reasonably assumed to serve as a reflection of activities of an of the relationship between R&D, patents and productivity (Nyman- of the relationship between R&D, 2014). analysis Metcalf and others Such help us in the assessment can and Chochia 2016). The analysis of the innovation process necessarily entails study a deep commerce with other types of IPRs such as trade marks, copyrights, etc., types of IPRs such as trade marks, copyrights, with other commerce (Dobrin different very be can outcomes) (and considerations the where of intermediaries (incubators, science parks and technology transfer science parks and technology of intermediaries (incubators, (Kuttim transfer and technology knowledge increased units) has led to and trade relationship of the distinguished from course is of 2016). This statistics can be of great interest despite the difficulties which arise in their in arise which difficulties the despite interest great of be can statistics (Griliches 1998). has also been a greater and usage There interpretation emergence the where university and industry sectors, of the integration and have concluded that this can throw up some insightful observations throw and have concluded that this can (Basberg 1987: in society 131). is no doubt that patent about progress There information of a technical nature and also as information of a of technology. an indicator between technological have studied the relationship Some researchers development, statistics) and economic by patent (as measured change A patent can serve the twin objectives of being both a source of change are by their very nature an indirect measure of the process. the of measure indirect an nature very by their are change can further metrics in this regard which also exist heterogeneous There 2013). (de Rassenfosse and others complicate matters the purposes of measuring technological changes in society. It should be should It society. in changes technological measuring purposes of the technological measuring for available methods all the almost that noted especially fast evolving information and communications technologies, technologies, communications and information evolving fast especially play a major role (Dutt and Kerikmäe 2014). One of the challenges with for source information it as an utilise to how to data is as patent to regard In today’s modern paced societies, rapidly growing technologies, and and technologies, growing rapidly societies, paced modern In today’s
XXIII (78) - 2017 Vol.XVIII, No. 66 - 2012 102 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 103 the variations of patenting performance across national boundaries, patenting performance variations of the There exists a belief among some scholars that patent counts are reflective are counts patent that scholars some among belief a exists There on a variation in performance being than rather patent to a propensity of and decode fully comprehend to in order an innovative level. Therefore empirical studies (Basberg 1987: 133). Patenting has been successfully related in many models to the models to many in successfully related has been Patenting development phase as activity. an output of R&D positive A relationship between R&D and patenting has been the subject matter of various Pottelsberghe de la Potterie 2009: 788). Pottelsberghe de la Potterie 2009: propensities towards patenting. Hence, if a country exhibits Hence, if a country preferences propensities towards patenting. specialisations then that may have an a particular set of technological for van and Rassenfosse (de filings patent of number observed the on impact It should be noted that there exists a factor known as technological known exists a factor there that It should be noted industries will have different different specialisation. It is obvious that known to undergo cycles of inefficiency which impact their “output” (de de la Potterie 2009: 783). Rassenfosse and van Pottelsberghe should be considered, then the former is preferred by some scholars on the scholars on by some is preferred former the then be considered, should follow different criteria for patentability grounds that different countries and also have different grant rates. Furthermore, patent offices are also When it comes to considering whether patent filings or patents granted use of patenting as a barometer for the observation and measurement observation and measurement for the as a barometer use of patenting lead to carefully if it is to must be undertaken of innovative processes (Basberg 1987: 132). substantial results variances in practice or key legislational features, then to compare them compare to then legislational features, key or variances in practice or invalidmay lead to faulty pitfalls, conclusions. In view of the above the to using patents for comparing countries, the principle of “like should be for comparing countries, the principle to using patents national patent institutions are not alike” is important. If diverse treated comparable amongst themselves in the first instance due significant to trade secret). Furthermore, the attitude towards the perceived utility of perceived the towards attitude the Furthermore, secret). trade When it comes industrial sectors. different can also vary between patents be compared against each other. One must not forget that an invention invention that an not forget One must other. each against be compared IP of facets or techniques different using by protected be often very can or simply the invention instance by patenting law (for it as a maintaining the uniform use of the patent system by the various industries which are to which are industries by the various system patent of the use the uniform shown to be very similar to an approach based on the benefit-cost ratio interesting results (Griliches 1958: 419). been Griliches has determined that calculation of such a “rate of return” investments have been. An attempt to estimate the realised social rate estimate the to An attempt investments have been. some 1950s showed in the research hybrid-corn of funding on return of noted that thanks to ever increasing funding by public noted that thanks to ever increasing and/or private it However, rapid rate. a at grown has R&D on expenditure bodies, is not easy to judge in a quantitative manner what the results of such During the course of his seminal work on this subject in the 1950s, Griliches 1950s, the in subject this on work seminal his of course the During on a direct measure of the output obtained through innovative means, through obtained output the of measure a direct on disadvantageous (de Rassenfosse and van inherently and is therefore 780). Pottelsberghe de la Potterie 2009: measure the ultimate impact of innovative activity in terms of profitability rely a study does not such However, productivity growth. total factor or i. One way of studying this problem has been forwarded by researchers i. One way of studying this problem such as Griliches, who has simplified the innovation process in order to especially since the codification of a researcher’s output is, in a systematic manner. nature, intangible and not codified by its very Research productivity productivity is hard to solve, research of measuring The conundrum intellectual property and science and technology policies, are designed. and science and technology intellectual property Empirical results show that in order to determine the number of patents of number the determine to show that in order Empirical results of productivity and the twin components must study one per researcher education, which in manner the by influenced are turn in which propensity, b. Studying research productivity or patent propensity 2014; 2011). productivity as well as the propensity towards patenting (de Rassenfosse (de Rassenfosse patenting towards propensity the as well as productivity 2009: and periods Potterie 779). de la Different Pottelsberghe and van fluctuations often also impact economy the (Männasoo and Meriküll would require a keen grasp of the varied factors that affect research research that affect factors varied of the grasp a keen require would
XXIII (78) - 2017 Vol.XVIII, No. 66 - 2012 104 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 105 show the contribution of public expenditures on agricultural research and research agricultural on public expenditures of contribution the show agricultural productivity level of the its results on the dissemination of on (Griliches 1964: 961 – 962, 965). on research and extension per farm, into the estimating equation. Studies estimating equation. the into and extension per farm, research on such as these have served to define and measure different variables to achieved by estimating an unrestricted production function of the Cobb- of the function production achieved by estimating an unrestricted plus categories input major five for variables separate using type, Douglas and a measure of public expenditures per worker of education a measure dissemination of research results) affected the level of agricultural output level of the results) affected research dissemination of was result study This return. of rate social high very a in resulting significantly, on US data, covering some years between 1949 on US data, covering some years up to 1959, to show the significance of education as a factorthat public research and extension (the expenditures on agricultural affecting output, indicated The “output” based on returns was further studied in later research, where was studied in later research, further The “output” based on returns agricultural production function based an estimation of the aggregate Griliches continued this line of research into the 1960s, he into the where research Griliches continued this line of R&D. of output measure to ways different existed there that determined to encourage the private sector to fund the R&D of nylon (Griliches 1958: R&D to fund the private sector the encourage to 430). return on private investments in this sector. On the other hand, when nylon when hand, other On the in this sector. private investments on return is studied as an example, then the private profits of its creator, DuPont, were nonetheless high enough on par with the social returns, not although area was difficult, the short lifespan of the patents wasa problem and the difficulties in procuring long term monopolies in this fieldthe overshadowed calculated) (as return of rate social the Hence high. were very development, it was shown that the incentive for participation by private participation for incentive was shown that the development, it valuable ideas in this the patents for was restricted, since getting actors between social and private rates of return, which must be adequately be adequately must which return, of rates social and private between private public investments trump whether argue to calculated in order investments in R&D or vice versa. For instance, in the field of hybrid-corn calculation of the probability that it will be successful (Griliches 1958: (Griliches it will be successful that probability of the calculation a difference exists there that notion is also the there stated that 427). He return of a successful successful of a is innovation return calculated best if divided two into components: namely, in the first instance, the calculation of the rate of the secondly, and success a be to out turns development if the return method (Griliches 1958: 424). Furthermore, he devised that the rate of of rate he devised(Griliches the that 1958: method Furthermore, 424). factories, since industry generates 80% of the EU’s private innovations factories, since industry generates 80% of the EU’s private innovations manufacturing and re-industrialization on the Western economic agenda manufacturing and re-industrialization on the Western highlights the industrial sector as a special source of innovation and new Industry 4.0 and smart of context especially in the development, product order to attempt to measure the output as a consequential share of a of as a consequential share output the measure attempt to to order of new or improved product or process innovation. The renaissance separately) (Griliches 1979: 110). separately) (Griliches 1979: 110). surveys in innovation on reliance approach is through ii. A second whether the different types of research are substitutes (where inputs substitutes (where are research types of different the whether or complements (where inputs are considered are added together) between economies of scale and productivity growth induced by R&D induced productivity growth scale and of economies between are also of relevance (Griliches 1979: 109). questions He emphasised that namely function, production of the also arise about the functional form Calculation of relative returns to basic versus applied research, similarities/ basic versus applied research, to returns relative Calculation of differences between publicly and privately financed R&D, measurement differences the and spending, of public R&D effects spilloverthe of input measure (Griliches 1979: 100). often borrowed or stolen. Thus one can see that the results of investments the can see that one Thus stolen. or borrowed often be could it Thus terms. direct in observable not often very are R&D into which can be viewed as an capital is something that R&D considered is the fact that past R&D investments can be subject to depreciation and depreciation to subject be can investments R&D past that fact the is sectors or industries is from other obsolescence. And very often knowledge as such (Griliches 1979: 96). Furthermore, he stated that the measurement he stated that the measurement 1979: as such (Griliches Furthermore, 96). development “capital” of research and the lag (i.e., is in turn affected by by the R&D process). Also of interest in terms of years, taken the time, often for example, in the field of space by success affected equipment and is not on mandays and expenditures exploration output is measured by showed that the measurement of “output” in research and development in research and development measurement of “output” showed that the services or products the is affected by the fact that intensive industries measured inaccurately. Thus, are themselves often of those industries In the 1970s, Griliches deduced that productivity and its growth can be can be In the 1970s, its growth productivity and deduced that Griliches 93). He (Griliches 1979: function” a “production of in the context discussed return of 1300 percent for social investment in agricultural research and and research in agricultural investment social for of 1300 percent return 968). (Griliches 1964: extension One of the calculations in the above study found a very high gross rate of rate gross very high a found above study in the calculations the of One
XXIII (78) - 2017 Vol.XVIII, No. 66 - 2012 106 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 107 anything under the sun made by the under anything ”. Furthermore, Science & Technology policies influence institutions Potterie 2009: 781). activities, being an offshoot of stronger values activities, of stronger of creativity, markedly being an offshoot absorb new overall capabilities improved skill an increase in the to sets or de la and van Pottelsberghe (de Rassenfosse technologies and trending of patented inventions. On the other hand, research productivity could productivity research hand, other the On inventions. patented of in a country, education level of such as a high by factors also be affected research productivity of increased in as resulting this is perceived since basic research is towards publications business oriented while funded effective use development is aimed towards the and applied research by determining whether their research is funded publicly or through publicly or is funded research their whether by determining they indulge in basic versus applied private means, and/or whether publicly funded if is affected patent to propensity the Thus research. are patentable under the doctrine of “ of doctrine the patentable under are man Europe (eg. software alone without any technical effect, or certain gene certain or any technical effect, alone without software (eg. Europe hand in the US the Supreme Court other related inventions) while on the inventions variety of a large case that v. Chakrabarty Diamond in the held This is often determined by IP policy design. A classic example of this classic example of A policy design. by IP determined is often This would be the fact that what is a patentable subject matter can depend upon jurisdiction. Thus, certain technologies are unpatentable in often Propensity to patent van Pottelsberghe de la Potterie 2009: 780). van Pottelsberghe de la Potterie 2009: as necessarily being the “ouput”, is often subject to empirical complexity, of propensity to one tries to separate the component especially when Rassenfosse and(de productivity research of component the patent, from However one must be cautious about this approach since regarding researchregarding since approach this about cautious be must one However and viewing patents into the invention production function, efforts as “inputs” based on the view that effective research results in inventions, being anbeing inventions, in results research effective that view the on based potentiallycould inventions such turn, In effect”. “productivity the of offshoot patent.to a propensity system, the exists, within if there patents towards lead iii. Thirdly, patent based metrics have been used as an indicator. Studying used as an indicator. have been patent based metrics iii. Thirdly, theoreticallyis a study since such outcomes interesting results in often patents benchmarking of innovation outputs will play an increasingly important important increasingly an will play outputs innovation of benchmarking manufacturing. role for smart and 75% of its exports (Prause 2015). Consequently, the assessment and the assessment 2015). (Prause Consequently, its exports 75% of and innovation management has grown due to increasingly complex, fast increasingly complex, to due has grown management innovation of and interactive innovation needs, which requires the connection Recently, the importance of innovation communities for contemporary for communities innovation of importance the Recently, before the patent application has proceeded towards being granted. proceeded applicationhas patent the before in route In both cases maintaining secrecy thus becomes the preferred respect of protecting the invention (Basberg 1987: 134). not be a rational choice. Furthermore, in the case of new fields such as invention gravitates towards obsolescence even an microelectronics, whether the owner should go in for patenting or to maintain it as a trade to or patenting in for should go owner the whether longer last for to is expected invention the life of economic If the secret. obtaining a patent would then than 20 years (the span of a patent) rendering infructuous the option of patenting itself. The expected infructuous rendering invention also invariably life of an playseconomic a role in deciding be considered is that in certain cases a competitor may easily cases a competitor “invent be considered is that in certain be successful in delaying may only a patent Hence, patent. the around” thereby a few months, of period by a short invention of the an imitation to be too expensive or the expected income in the form of sales, royalties, expensive or to be too involved, then costs far less than the or are tinged with uncertainty etc. reason which should would be lacking. Another incentive to patent the maintain secrecy in respect to their inventions. Economic expectations maintain secrecy in respect to If the process of patenting is deemed can also play a role in this regard. affect their chances of patentability (Basberg 1987: 133). of patentability (Basberg 1987: affect their chances to to see why some inventors prefer In view of the above, it is easy bio-technology - may be subject to ambiguity regarding factors such as inventive step and industrial applicability, which would therefore novelty, under patent law. Furthermore, there could be a variance in patent could be there Furthermore, under patent law. new Further despite the TRIPS agreement. countries, laws of different or - such as microelectronics (and inventions thereunder) technologies the use of the patent system) or secretly. This may be the case because case because be the secretly. This may or patent system) of the use the the invention is not patentable itself due to specific legal considerations is an issue which can depend not only upon the particularities of the of the upon the particularities not only which can depend is an issue investigation when the the point of time studied but also being sector openly (by either can be protected Thus, an invention is undertaken. It should be noted that not all inventions end up being patented. This This patented. being up end all inventions not that noted be should It c. Accounting for secret inventions which forc. Accounting secret are inventions not patented
XXIII (78) - 2017 Vol.XVIII, No. 66 - 2012 108 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 109 would be usual for an Estonian applicant to apply for a patent in Estonia. an Estonian applicant to apply a would be usual for for the applicants from one country is sought to be utilised as a proxy for be utilised as a proxy to is sought country one applicants from the as a whole. This of that country measuring the innovative performance It a patent. applicationfor place of the of choosing step requires careful An important dependent variable is the number in of which jurisdiction patents they are filed filed. and Thus, the number of patents filed by because of the time, effort and money spent on obtaining such patents because of the time, effort (Basberg 1987: 136). patents. In fact, one could even draw the conclusion that only those that conclusion could even draw the one In fact, patents. inventions which fulfill the criteria of highare patented abroad. This would be necessarily so expectations thereof) profit returns reasonable (or in our study, foreign patents serve the utility in our study, foreign patents serve of being good indicators of filed domestically than quality higher a of generally are They technology. Licensing terms (in the context of production of goods) very often goods) of production of context (in the Licensing terms dealing with a patent having of precondition contractual the requires interestingly More manufacturing. process of or particular product that filed abroad. On the one hand this could have obvious implications for export markets (existing or potential). a business strategy which covers d. The value of foreignd. The value patents it comes to studying patents which have been are many pros when There (Hoffmann and Prause 2015: 134). (Hoffmann and Prause the participation of user innovators in additionally generated company additionally generated in innovators user of participation the profits have recently been kind” any of contributions innovation private non-affiliated and inventions a major issue in the field of employee’s contribute in the form of comments, feedback or recommendations, to to recommendations, feedback or comments, of form in the contribute the company’s profit, and “related topics like the protection of IPRs and related knowledge pooled among consumers themselves. Consumers themselves. Consumers consumers among pooled knowledge related mainly via information process innovation the into can be integrated Consumers communities. online of form (Web 2.0) in the technology even more importantly, that they refer that to their pool of employees), their pool of employees), that to that they refer importantly, even more consumer- the abundant access practices innovation” “user-driven phenomenon of “user-driven innovation” has to be taken into account as account into be taken has to innovation” of “user-driven phenomenon their companies maintain practice that to the traditional well. In contrast in practice facilities innovation (or, patentable developing research proper external and internal knowledge bases (Prause and Thurner 2014). The 2014). The Thurner and (Prause bases knowledge internal and external of knowledge share one essential feature: they are nonrival. Although nonrival. are they essential feature: one share knowledge of dimension: along a second all knowledge is nonrival, it is heterogeneous The empirical model chosen by the authors builds on the R&D based emphasizes, all types Romer 1990). As (Romer Romer model of growth Development of the Model concerning patents and their treatment thereof (Basberg 1987: 136). concerning patents and their treatment comparisons between different countries. By comparing multinational By comparing countries. different comparisons between factors those delete it is possible to country, a third activities in patenting arising due to different national legislations, which cause difficulties In recent years, due to the availability the of data, triadic patent families are years, due to In recent data and drawing measuring patent as especially for being seen useful damaging “home bias” (de Rassenfosse and van Pottelsberghe de la (de Rassenfosse and van Pottelsberghe bias” damaging “home Potterie 2009: 782). Since they are translated and prosecuted in three different systems they different three in prosecuted and translated are they Since potentially any to less susceptible and value high of be to considered are (JPO), and are thus a reliable measure of a perceived global protection a reliable measure of a perceived (JPO), and are thus OECD database provides applicants. The their part of the on strategy applications. such patent on coverage adequate and readily available our study hopes to analyse. One way forward, as suggested by the OECD, OECD, by the as suggested way forward, analyse. One hopes to study our that patents only the include These families. triadic patent utilise is to Office Patent Japan the and EPO USPTO, the at simultaneously filed were respective patent applicationsrespective patent would mean in the USPTO or EPO, which bias” is likely comparisons which to skew the international that their “home to higher fees and translation costs. Hence the presumption that only translation costs. Hence the to higher fees and the most valuable patents would be filed there. However, American or European patent applicants would have a higher propensity to file their they are perceived to be high quality patent applications with a higher quality patent be high to are perceived they market value. It should also be noted that patents filed there are subject is fraught with questions about its true value. Usually most studies are studies most Usually value. its true about with questions is fraught aimed at investigating patents filedeither at theEuropean PatentOffice (EPO) or the United States Patent and Trade marks Office (USPTO), since This is known as a “home bias”. Reliance on such a patent filing in Estonia
XXIII (78) - 2017 Vol.XVIII, No. 66 - 2012 110 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 111 and R&D (1) is labour. Capital is labour. Capital accumulation
L (2)
is technology, . Labour is divided into production into is divided Labour . A is the depreciation rate and labour input grows at a constant a at grows input labour and rate depreciation is the is the rate at which new ideas are discovered. new is the rate at which is the capital, K . Romer assumes that the growth rate of new ideas is proportional to to ideas is proportional new of rate growth the that assumes Romer . Technology. This paper studies the role of education and R&D on patents This paper studies the role of education and Technology. for a group of 26 countries that are members of OECD for years 1990-2015. Patent data is obtained from the OECD database data is obtained from the OECD database by Patent on Patents Selection of data must focus on spending time, effort and money on activities such as R&D. activities such on and money effort spending time, on focus must very essential. Human capital investment is also Where countries growth, economic achieve perpetual to that shows model This the number of people trying to discover new ideas: the number of people trying to discover Where rate Where as in the Sodel:
function which exhibits increasing returns to scale in all three inputs to scale in all inputs three exhibits increasing returns function which nonrivalrous nature of ideas): (because of the The final output isproduced according to a Cobb-Douglas production growth. Technology changes because people take recourse to actions to actions take recourse people because changes Technology growth. Replication by the market. to incentives posed as a response intentionally additional costs. incur no for new products of the designs excludibility. His model states that technology changes and this affects affects and this changes technology excludibility. that states model His A patent patent A – is then extended is then –
priority – the – ” is submitted in a country in is submitted
. offices application personnel researchers “rd_per_re”. for each country in R&D (in thousands and per cent) as gross domestic cent) as gross and per thousands (in in R&D country each for “rd_gdp”; GDP of percentage as a and “rd_mpps”, R&D on expenditure and only for R&D personnel total “rd_per_tot”, and the expenditure and as per cent “ed3_pcent” as an indicator for education policy and education for an indicator as “ed3_pcent” cent and as per expenditure the person; by each completed education level of highest of patents for each country “oecd_pat” which represent the dependent the represent which “oecd_pat” country each for patents of variable in our finalmodel; the population level “pop”; “ed3_1000”, in thousands expressed education level mainly as tertiary the education In this paper, the variables the authors are interested in are: the number the in are: interested are authors variables the the In this paper, that occur within subjects over a period of time. With the help of panel various these advantage of can take one techniques data regression forms of information. periods (two or more in number). The information contained in such kind contained information The number). in periods (two or more in shown are subjects the between differences The types. two of is data of time series are shown in the changes the cross-sectional information. The data or cross sectional time series data. This is data where multiple cases data where is This series data. sectional time cross data or etc.) can be observed in different time (for example people, countries, inhabitants express triadic patent families. inhabitants express triadic patent This can also be called The authors have a panel data. longitudinal countries as a set of patents. Triadic patent families are a set of patents of a set families are Triadic patent patents. as a set of countries Numbers and per million the JPO and the USPTO. in the EPO, registered The definition of the triadic patent familyas per the OECD is “ is family: in various in order to be protected registered the same invention first a to other indicator for assessing technological strengths of nations. Triadic patents of nations. Triadic patents assessing technological strengths indicator for America, in North i.e. triad regions, in the registered patents those are when that means date priority where and Asia with “priority date” Europe, Turkey. Some data concerning China has also been collected. The collected. has also been China data concerning Some Turkey. is the which date, priority with patent triadic the on mainly focuses study Germany, France, Italy, the United Kingdom, Luxembourg, Austria, Belgium, Belgium, Austria, Luxembourg, Kingdom, United Italy, the France, Germany, Netherlands, Ireland, the Iceland, Hungary, Greece, Republic, Czech the and Spain, Switzerland republic, Slovenia, the Slovak Portugal, Poland, Countries studied are Estonia, Latvia, Finland, Sweden, Norway, Denmark, Denmark, Norway, Sweden, Finland, Latvia, are Estonia, studied Countries
XXIII (78) - 2017 Vol.XVIII, No. 66 - 2012 112 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 113
3.91 Max 39.60 54096 860842 549283 7637.78 13716.40 71842.57 127344.6 54070.88 40944.64 0 0 0 0 0 8.4 Min 33.3 0.33 2180 1321 56.45 S.D. 7.22 0.83 1195.42 3459.43 9250.50 8435.31 6504.78 13733.64 145783.1 84862.04 16455.15 OECD countries 1.59 23.83 Mean 572.01 2797.23 9068.56 6619.41 4405.49 3668.92 2896.96 114287.6 73047.12 25.2 2.87 Max 54096 860842 549283 7637.78 12563.7 71842.57 127344.6 54070.88 40944.64 Min 20.1 2.13 664731 397130 3512.92 4132.85 3926.21 3719.57 1912.93 10761.1 41015.75 Germany S.D. 1.80 0.24 650.08 1392.88 12167.23 10037.73 82501.59 62659.83 41412.44 17189.79 17244.98 22.5 2.45 Mean 46616.3 5536.72 28350.38 53934.15 755525.5 65143.02 36058.28 35979.05 11613.83 33.3 2.31 7.11 Max 7646 23.60 54.46 38.92 29.68 273.4 10284 457.43 0 0 0 0 0 Min 26.4 0.57 6531 4458 69.40 227.4 Estonia S.D. 0.53 2.09 2.40 7.99 13.32 18.24 16.16 10.11 124.61 1490.08 1242.58 1.17 2.37 15.32 20.57 29.93 Mean 12.30 10.15 253.68 219.68 8444.69 6145.69 pat pat rd_gdp rd_mpps Stock10_ Stock15_ Variables ed3_1000 Re_per_re oecd_pat Stock_pat rd_per_tot Table 1: Descriptive statistics Table 1: Descriptive Ed3_pcent Stock5_pat assumes that the intercepts change along with the countries. The model assumes change along with the countries. The that the intercepts used is the following: The estimation of innovation has been carried out using a fixed-effects estimator. The fixed-effects (FE) regression analysis accounts for country fixed effects. It brings forth consistent estimators of the coefficients. It Research Design (or empirical analysis) Research Notes: OECD Dataset 2015 presented in Table 1. presented in Table using the formula formula using the from 1990 to 2015 (1990 is initial the Descriptive year). statistics are and 15 percent depreciation rate (“stock5_pat”, “stock10_pat”, “stock15_ “stock10_pat”, (“stock5_pat”, rate depreciation 15 percent and patent The literature. the in as suggested 20 percent using not pat”) and – is calculated patent stock initial the years – after subsequent stock for The patent stock “stock_pat” is computed using 5 percent, 10 percent 10 percent 5 percent, using is computed “stock_pat” stock patent The is the stock of stock of is the is the level of tertiary tertiary of level the is refer to country and time level. country and time refer to i,t represents the R&D and R&D the represents is the level of patents, level of is the the model is good to explain their prediction. statistically significant. The goodness-of-fit is expressed R-squared by for how authors tell the and countries, between and within overall model, the authors expect from their study: they interpret this result as the more R&D more as the result this interpret they study: their from expect authors has. country patents the more the is in a country, and innovation there The level of stock patents shows a negative coefficient and are also not The covariate related to R&D shows a positive coefficient that is what the what is that coefficient positive a shows R&D to related covariate The stock of patents and how they affect our dependent variable “oecd_ affect our stock of patents and how they pat”. The education level is strongly significant but with a negative effect on the number of patents. the “variables in level” and “relative variables”. The main variables the main The variables”. “relative level” and in “variables the R&D and the education, level of tertiary in are the are interested authors In this section the authors present their results for the panel regression of present their results for the panel regression In this section the authors 2015. The 1990 - years the OECD, for the of members are that 26 countries for model, FE and RE models, using linear regression estimate the authors Results for the variables are presented in column 4 and column 5. are presented in column 4 and for the variables they should prefer is the FE model. Results of the authors’ estimations are of the authors’ estimations are is the FE model. Results they should prefer to estimate the level for also proceeded authors 2. The presented in Table values relative the 1-3, while columns in described are that variables the random effect model (RE). The authors test their models by the Hausman models by the their test authors effect model (RE). The random test and the significance of the p-value shows them that the model The authors pooled the above data to estimate the fixed effect model. In model. effect fixed the estimate to data above the pooled authors The regression model and linear results using the present authors addition, the education, education, The subscripts patents. Where
XXIII (78) - 2017 Vol.XVIII, No. 66 - 2012 114 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 115 222 0.03 0.99 0.90 RE (5) (1.124) (0.041) -0.000 -0.347** -2.124** (0.139) (0.704) 0.911*** 222 0.10 0.59 0.47 FE (4) 0.730* (0.379) (4.760) -9.923* (0.521) -0.280 -1.477** (0.380) 215 0.88 0.00 0.93 0.000 RE (3) (0.000) -3.018** -0.566** 1.417*** (0.180) (0.200) (0.921) 215 0.46 0.17 0.50 FE (2) 0.727** -0.000** -1.585*** 10.551*** (0.359) (0.000) (2.016) (0.240) ------215 0.88 0.000** OLS (1) 1.667*** (0.084) -0.605*** (0.000) (0.374) (0.087) - 4.761*** R&D N. obs R2 within Constant Variables R2 (overall) R2 between Stock patent Education level depreciated 5% Table 2: Estimations for level and relative variables Table 2: Estimations for level and 1) and for each country (Fig. 2). The highest number of patents belong to (Fig. 2). The highest number of 1) and for each country Germany, France, United Kingdom and Sweden. columns (4)-(5) (Fig. all countries of patents for number paper shows graphically the The in (1)-(3) while relative variables are columns in 1% level. Level variables are *** 5%, ** 10%, * Notes: > chi2 = 0.0000). test and as they already mentioned, p-value is significant sothey reject (Prob model effect random the using to it is related null hypothesis that the last decades. Hausman by the models RE and FE their test to proceeded authors The positive coefficient. The authors’ conclusion about those values can be in universities during the of the number of students related to the increase The authors can also add that the education level, mainly tertiary that the education level, mainly can also add authors The of patents as they has a negative impact on the number education level, a estimations, while R&D shows the negative value of their can see from countries invest more and then they have more patents. more patents. then they have invest more and countries model is poor at explaining the number of patents. However, the overall overall the However, patents. of number the at explaining is poor model and 0.59). The (0.47 quite high are R-squared and between R-squared explanation: bigger obvious most as the results these interpret authors From the authors’ study, the R-squared is quite low and this means that the that means this and low quite is R-squared the study, authors’ the From need a university education system which need a university education system
(2014). The data analysis shows that in the Baltics plus Finland, the bigger the Finland, Baltics plus in the data analysis shows that (2014). The patents. Of course, already having for R&D is good share of spending on a stock of patents makes it easier to get more patents. a comparative perspective, in which the Baltic States and further East a comparative perspective, in which the Baltic States and further by Hoffmann need from various perspectives, as outlined face an urgent member states such as Estonia patents. Quality of education matters. leads to inventions which lead to – especially and guidance is needed from acquisition assistance Patent To have more patents (especially To have more patents (especially quality for high inventions) small studying soft sciences. 50 years ago access to universities was restricted. access to ago studying soft sciences. 50 years is need to there Therefore education. higher everyone can access Now in universities. improve the quality of science taught table is significant). One possible explanationare more universities, and in students of number the in expansion an is that there has been Prior belief with the pooled model: more education leads Prior belief with the pooled model: to more patents. But data analysis to more shows that R&D leads patents. More in -2.42392, 0.002 is coef (educ less patents leads to education more bigger countries invest more, and then have more patents. bigger countries invest more, and are just too different). R-squared within is incredibly low (when is countries comparable, the model at explaining the number of poor making is good at explaining the obvious: patents). This suggests that the model patents are both significant and positive as expected.Overall r-squared (maybe because countries is also incredibly high Between high. is very Education is strongly significant but negative. R&D and the stock of Analysis states such as Estonia, it is visible how the number of patents is quite low, low, is quite patents of number the how is visible it as Estonia, such states European countries other the graph with of is on the bottom but Estonia example. Luxembourg for Finland, Italy, or such as For the purpose of the authors’ study which focuses on small member member small on which focuses study authors’ the of purpose the For
XXIII (78) - 2017 Vol.XVIII, No. 66 - 2012 116 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 117 Belgium, etc. are similarly ranked as Estonia in this regard. So perhaps it So in this regard. similarly as Estonia are ranked Belgium, etc. is not a question of size or wealth, but rather some other characteristics. capita numbers. However, the triadic research data indicates that bigger the triadic research capita numbers. However, Luxembourg, Finland, Norway, such as Denmark, countries (and richer) This raises the question as to what exactly is going on within Estonia. On This raises the question as to what by stating that research present it is easy to discredit the hand, one the placed upon per reliance should be Estonia is a small and more country 0.68 patents per 1000 employees. etc. As the Report acknowledges that large countries tend to have more have to tend countries large acknowledges that Report the As etc. fares Estonia employees. 1000 per filings IPR shows also table the filings, IPR with Germany which has at 0.06 patents per 1000 employees in contrast There are no surprises that Germany occupies the first place for patents, the Netherlands, the UK, by France, trade marks and designs, followed Member State analysis. Table 37 reveals that Estonia is ranked 22nd out is ranked Estonia 37 reveals that analysis. Table State Member of 28 countries when it comes to patent filings. This than marginallyis what better the present study shows about Estonian triadic patent filings. corroborate the findings in the authors’ present study, one can look at the at look can one study, present authors’ the in findings the corroborate 2016, dated October Level Analysis Report, published Industry recently by State reveals Member 7.4 Chapter EUIPO. and EPO compiled by the stagnation. The ranking system developed by the authors shows that authors system developed by the ranking The stagnation. To as far as triadic patents are concerned. Estonia is at the bottom When one looks at the dismal situation in Estonia with regard to triadic triadic to regard in Estonia with dismal situation at the looks one When patenting activities, it is international patenting activities apparent that from languishing/ prevent R&D and the economy need a push to human capital index (Gaetan de Rassenfosse and Bruno Potterie 2009). (Gaetan de Rassenfosse and human capital index patent varies on the type of industry. There is no denying that education denying that is no type of industry. There the varies on patent and high quality researchers towards generating policies contribute equally high quality productivity. This is the positive a result of impact of the account account international patent filings. Another key feature is to specialisation, issues to the propensity since related to technological focus on theoretically mean that more productive researchers are created. created. are researchers productive that more mean theoretically innovation of relative that assessment study also indicates That same be better assumed can one takes into when of countries performances As has been stated by some scholars, a higher level of education can education of level higher a scholars, some by stated has been As Countries like Estonia have very small economies and mostly trade in Conclusion adopted by Estonian businesses (Kelli and others 2010: 318, 322-324). adopted by Estonian businesses entrepreneurs is generally low and the focus tends to be more towards towards be more to tends focus and the low is generally entrepreneurs protecting proprietary knowledge by using inefficient trade secrets. This strategies by the trade secrecy protection is harmed approach, in turn, the fact that Estonian entrepreneurs, as a rule, tend to be SMEs in low-tech the fact that Estonian entrepreneurs, by Estonian patenting level of reason why the This is also a key sectors. engineers (Mets and Kelli 2013: 101-103). engineers (Mets and Kelli 2013: 101-103). towards statistical data points Estonian shown have researchers Other c. IPR reward regimes, being based more on rigid imperative legal norms imperative rigid on based more being regimes, reward IPR arrangements with the employed scientists and instead of contractual b. Interesting research based on case studies further revealed that while a based on case studies further research b. Interesting and this is rare use of IPR protection, few Estonian startups do make heavy is affected by local attitudes within businesses towards a lack of flexible and others 2010: 387, 388 and 393). the market and knowledge leverage is the market and The grudgingly acknowledged. use of clever business and a happy (as adopted by Skype, etc.) models (Mets path forward the luck is seen as on based very often combination like Estonia, IPR is perceived as a barrier to internationalisation or as a or internationalisation to IPR is perceived as a barrier like Estonia, towards as a supporter competitors while its role blocker for constraining stance but is saddled by a poor economy which cannot afford to to afford which cannot economy by a poor stance but is saddled startups) as vigorously (especially based support startups technology in small countries Furthermore, countries. Western as neighbouring a. Some Estonian researchers blame this sorry state of affairs regarding affairs of state sorry this blame researchers Estonian Some a. the occupation the legacy of in Estonia upon activities patenting in general a liberal Estonia has adopted Independence Union. Since by the Soviet locally within Estonia, who seem to indicate the following: the to indicate who seem Estonia, within locally This has been the question of several researche projects conducted
XXIII (78) - 2017 Vol.XVIII, No. 66 - 2012 118 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 119 which is one of the leading project management influence (Hoffmann and Wang 2016). Furthermore, the trade deficit China is increasingly catching up with the West in regards to research, to in regards West up with the China is increasingly catching Chinese patenting. as well as international and innovation, development rapidly assuming a global are and compliant fully WTO laws are domestic financial year. measures with the aim of enhancing Germany’s competitiveness as a measures with the aim of enhancing innovation in the common European prime location for research and It allocated € 1.41 Research Area. billion of funding during the 2015 high tech startups. In this connection one could see Management details Jülich of Project national and European funding agencies in Germany, which integrates which focus more on increased public spending on R&D and innovation R&D increased public spending on on more focus which and raise support for and technology, in public universities of science comparisons easily. Furthermore, the authors claim that small member claim that authors the easily. Furthermore, comparisons medium sized member states, should states such as Estonia and also countries such as Germany and adopt policies example of follow the c. The triadic patent statistics OECD are the least biased provided by and help in deducing international indicators of innovation performances Member States should look towards ways to reduce the cost burden on cost burden the reduce look towards ways to States should Member ups). their companies (especially start b. In view of the high costs incurred to acquire international patents patents international acquire to costs incurred high the of view In b. small and medium sized of governments (especially triadic patents), the influencing researchers and their productivity vis-a-vis the propensity to in high technology areas. patent, especially a. Small member states such as Estonia and also medium sized EU Member and also medium sized EU Member states such as Estonia a. Small member to comes it when approach coordinated a more adopt should States those stated by other researchers (de Rassenfosse and van Pottelsberghe and van Pottelsberghe (de Rassenfosse researchers by other stated those 788), namely: de la Potterie 2009: of Information and Communication Technology (ICT) and software (ICT) and software Technology and Communication of Information applications. policy The implications are similar one can draw that to of electrical equipment, wood, agricultural and food products. Small Small products. food and agricultural wood, equipment, electrical of member states, also medium EU as Estonia and states such EU member new areas services and high technology shift focus towards need to goods. In 2016, Statistics Estonia states that Estonian exports were mainly mainly were exports Estonian that states Estonia Statistics 2016, In goods. colours in the graph: Figure 1: The number of triadic patents for all countries together. Note the Note for all together. Figure 1: The number of triadic patents countries ANNEXES: upon cheap labour and are mass produced) thanks to, among others, among to, thanks mass produced) are and labour cheap upon the Chinese Belt and Road Initiative. irrelevant. This is especially important since they cannot possibly hope to hope possibly cannot since they is especially important This irrelevant. compete economically against the flood of more competitively priced still depend a certain extent to EU (which the into imported Chinese goods member states such as Estonia to become proficient in high technology economically becoming avoiding applications thereby and ICT services, return, which would then imply that the governments of such Member of such governments the that imply which would then return, universities public especially in subsidise R&D, and further go must States spin-offs (Pessoa university and 2005). way for only the be would This establish or defend/enforce their IPRs, then it becomes a classic a classic it becomes case of IPRs, then their defend/enforce or establish less becoming to innovation the the social than rate of return the private in respect of services according to Eurostat. If the markets of small of small If the markets Eurostat. to according services of in respect and medium sized Member States fail to allocate sufficient resources towards to unable financially are start-ups their because knowledge of generation between China and the EU is growing rapidly in respect of goods, but not but of goods, in respect rapidly EU is growing the and China between
XXIII (78) - 2017 Vol.XVIII, No. 66 - 2012 120 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 121 the graph) visible because low part of visible because low 23. Slovenia: Khaki (idem as Slovak) 24) 24. Spain: Sienna (same as 23 and 25. Switzerland: Olive teal 26. Turkey: Emerald 27. China: Black 17. Iceland: Sand 17. Iceland: green 18. Ireland: Forest Dark orange 19. Netherlands: 20. Poland: Teal 21. Portugal: Cranberry Lavender (not 22. Slovak Republic: 15. Greece: Orange red 15. Greece: Navy 16. Hungary: 14. Czech Republic: Red 12. Austria: Brown 13. Belgium: Magenta 10. United Kingdom: emidblue 11. Luxembourg: Navy8 9. Italy: Sienna 7. Germany: Lavender 8. France: Khaki 6. Denmark: Cranberry 4. Sweden: Blue 5. Norway: Lime 2. Latvia: Green Pink 3. Finland: Estonia: Yellow 1. Estonia: Figure 2: The number of triadic patents for all countries individually Figure 2: The number of triadic patents , 38: 779– Research Policy Research . Springer Verlag. . Springer . [pdf]. Available [pdf]. . http://europa.eu/ Accessed 6 March , 6(2): 28−57. , 16(2-4): 131-141. , 16(2-4): [ . Research Policy, Research .
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Record EU deficit in trade in goods with China of €180 National accounts and GDP. and accounts National and East European Law intellectual property the sustainable: a view from approaches perspective. 141. intellektuaalse omandi õiguses. Europe. Law in Academia: Central and Eastern 10(1): 92-116. Griliches, Z., ed. – 343. University of Chicago Press. pp. 287 agricultural production function. agricultural production 54(6): 961-974. productivity growth. to development BP-EN.pdf/67bbb626-d55f-4032-8c24-48e4c9f78c3a March 2017]. related innovations. March 2017]. billion in 2015. ec.europa.eu/eurostat/documents/2995521/7553974/6-12072016- accounts_and_GDP initiative regional integration (OBOR): China’s One Road Available at: BRIE/2016/586608/EPRS_BRI(2016)586608_EN.pdf ec.europa.eu/eurostat/statistics-explained/index.php/National_ Hoffmann, T. and others, 2015. How to keep open-source based innovation keep open-source to 2015. How and others, T. Hoffmann, Hoffmann, T., 2014. Reflections on Opportunities for Comparative Private Hoffmann, T. and others, 2012. Abstraktsioonipõhimõte Eesti ja Saksa Griliches, Z., 1998. Griliches, Z., 1979. Issues of research and in assessing the contribution Griliches, Z., 1964. and the aggregate Research expenditures, education Griliches, Z., 1958. Griliches, Z., Eurostat, 2017. Eurostat, Geieger, G., European Parlimentary Research Service, 2016. 2016. Service, Research Parlimentary European G., Geieger, Eurostat, 2017. 2017. Eurostat, [online]. [online].
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XXIII (78) - 2017 Vol.XVIII, No. 66 - 2012 124 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 125 , 8(2): [Accessed Portuguese Portuguese The Journal of The https://www.ptj. 5(2): 159–169. ) is a University . Bachelors thesis. Linnaeus Bachelors thesis. Linnaeus . . [press release] 9 December. . Springer Verlag. pp. 37−70. pp. Verlag. . Springer , 8(1): 18-23. [Accessed 6 March 2017]. https://www.diva-portal.org/smash/get/ Santa Clara High Technology Law Journal High Technology Santa Clara , 4(1): 46-67. , 4(1): 46-67. , 98(5): S71-S102. [email protected] In October, export growth was supported by the growth export In October, ( http://www.stat.ee/news-release-2016-138 FORESIGHT-RUSSIA [Accessed 6 March 2017]. [Accessed 6 March Patent development, R&D intensity and human capital — development, Patent Journal of Security and Sustainability Issues, Journal of Security a study based on a panel data model a panel a study based on University. Available at: diva2:421384/FULLTEXT01.pdf exports of goods of Estonian origin Available at: 6 March 2017]. de/en/start Political Economy 4.0. Innovation. Economic Journal Economic time of transition. 499-505. Charter of Fundamental Rights of Fundamental Charter microeconomic theory and labour market, education of education market, labour and theory microeconomic on courses has taught social inequality. She economics, Economics in 2005 and BSc International Cooperation and Cooperation in 2005 and BSc International Economics Development Economics in 2013). Her main research includes and Governance, Tallinn University of Technology. She Tallinn University of Technology. and Governance, holds degrees from the University of Palermo, Italy (MSc Simona Ferraro the candidate at and doctoral Assistant Teaching Lecturer, Business of School and Finance, Economics of Department Zhang, X., 2011.Zhang, Statistics Estonia, 2016. Romer, P., 1990. Endogenous Technological Change. 1990. Technological P., Endogenous Romer, Project Management Jülich, 2017. [online]. Available at: at: Available [online]. 2017. Jülich, Management Project Prause, G. and others, 2014. — Drivers for Open others, User Communities Prause, G. and Prause, G., 2015. Sustainable business models and structures for industry for models and structures G., 2015. Sustainable business Prause, Pitta, L., 1992. Intellectual property laws in the former Soviet republics: a republics: a Soviet laws 1992. Pitta, L., in the former property Intellectual Pessoa, A., 2005. Ideas driven growth: the OECD evidence. OECD evidence. the growth: Ideas driven 2005. A., Pessoa, ) is Professor in ) is Professor ) is a Lecturer at Tallinn ) is at a Lecturer [email protected] [email protected] ( ( competitiveness in neighbourhood countries (Moldova, (Moldova, countries competitiveness in neighbourhood Georgia) in the light of EU best practices and visions. Currently, prof. Kerikmäe is responsible for several such as Horizon 2020 projects and Development Aid projects to raise and supervising at several universities e.g. in United Kingdom, Kingdom, United in universities e.g. several supervising at and research international to is related and Switzerland, Vietnam, Academy. Bernadotte as Folke such networks cooperation and private institutions, international organizations, being, for being, organizations, international institutions, private and Asia. He has been teaching in Central example, EU key expert high-ranked law journals and author of more than 150 articles 150 than more of author and journals law high-ranked for public been active as an expert and publications. Tanel has Tanel Kerikmäe Tallinn Tallinn Law School, of Law and a Director European is a board member of several He University of Technology. Union, both within and outside Europe. Union, both within and outside involved in several international study of projects this field concerning and funded the by USAID and the European Office. He has practiced law since 1998. His areas of research research of areas His 1998. since law practiced has He Office. and Competition Law and he Law are Intellectual Property has various publications to these topics. He has been related and solicitor and is a member of various law associations in and solicitor and is a member in the Indian Patent Attorney India. He is registered as a Patent from the University of Mumbai, India) and a Master of Arts of Master a India) and Mumbai, of University the from He is a doctoral Technology. University of Tallinn in Law from Estonian Business student at the He is an advocate School. Intellectual Property Law. His educational background His educational Law. Property Intellectual and in Law (both degrees in Chemistry includes Bachelor´s Pawan Kumar Dutt Dutt Kumar Pawan He teaches Tallinn University of Technology. of Law School Currently, Simona Ferraro is team member for a Horizon 2020 Horizon for a is team member Simona Ferraro Currently, project. Economics for a MA course. Her research has been published published been has research Her course. a MA for Economics Modeling. of Policy Journal Paper and Pank Working Eesti in the Microeconomics for BA and MA courses and Development Development and courses MA and BA for Microeconomics
XXIII (78) - 2017 Vol.XVIII, No. 66 - 2012 126 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 127 Discussion Papers Discussion
XXIII (78) - 2017 Vol.XVIII, No. 66 - 2012 128 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 129 Century Maritime Silk Road initiatives (“One Belt, One Century Maritime Silk Road initiatives (“One Belt, One st
“One Belt, One Road” (OBOR) initiative, security cooperation, China’s choice “One Belt, One Road” (OBOR) initiative, security cooperation, China’s KEY WORDS: three issues, namely the supply of public security goods, the interests of the United States and States and three issues, namely the supply of public security goods, the interests of the United Russia, and the pivot of Pakistan, besides developing its own strength. turmoil in the region, as well as non-traditional threats such as terrorism, piracy, and transnational and transnational turmoil the region, as well as non-traditional threats such as terrorism, in piracy, organized crime. This article analyzes the present situation of security cooperation in the region attention to covered by “One Belt, One Road” and also suggests that China needs to pay special Road”) are of significance in enhancing China’s open economy. This article explores the dual security This article explores the dual security open economy. Road”) are of significance in enhancing China’s initiative. These challenges include both traditional challenges faced by the “One Belt, One Road” territorialsecurity challenges, such as great power competition, and island disputes, and political The Silk Road Economic Belt and the 21 Abstract Choices Liu Haiquan Belt, One Road” Initiative and China’s China’s Initiative and One Road” Belt, The Security Challenges of the “One “One the Challenges of The Security ISSN 1848-5782 1848-5782 ISSN UDC 327.56(510) DOI 10.1515/cirr-2017-0010 CIRR XXIII (78) 2017, 129-147 XXIII (78) CIRR Century Maritime Silk Road (hereafter referred to as “One Road”), to as “One referred Silk Road (hereafter Century Maritime st of OBOR initiative construction and implementation”. OBOR involves implementation”. and OBOR initiative construction of spatial the of terms In and Africa. including Asia, Europe continents three as to form a new pattern of all-round economic opening. In 2015, the a new pattern of all-round economic as to form CPC Central Economic Work Conference proposed to “do a good job proposed that China should accelerate the construction of infrastructure proposed that China should accelerate the construction and work and regions, countries China with neighboring connecting so Silk Road, Maritime a Belt and Economic build a Silk Road to hard In 2013, the decision of the CPC Central Committee (CPCCC) on ‘Some In 2013, the decision of the CPC Central Committee Major Issues Concerning Comprehensively Deepening the Reform’, the Communist Party of China (CPC). At that congress, calls (CPC). At that congress, were put the Communist Party of China and sub-regional bilateral, multilateral, regional coordinating for forward countries. with neighboring interconnection and promoting cooperation, As early as 2012, the idea to “promote all-round improvements to China’s all-round improvements to “promote to idea As early as 2012, the of 18th National Congress the at was put forward economy” open cooperation The status quo of OBOR regional security regional The status quo of OBOR its open economy level, and to explore deeply the current situation situation the current deeply explore level, and to its open economy which is of great practical and challenges of its security cooperation, of the strategic interests of OBOR. significance to ensure the realization of the year’s work in the Chinese “Government Work Report” in 2015. It Work Report” in the Chinese “Government of the year’s work is of great strategic significance for China to comprehensively improve through trade, investments, transport and energy infrastructure projects, (Mitrovic 2016: culture and other areas of cooperation tourism, education, 76). (OBOR) The “One Belt, One Road” initiative was as the focus included the Silk Road Economic Belt (hereafter referred to as “One Belt”) and the as “One Belt”) to referred (hereafter Belt Road Economic Silk the 21 Eurasia, Africa and Brazil with South-east and South Asia, which links China During Chinese President Xi Jinping’s visit Xi Jinping’s visit President During Chinese in and Indonesia to Kazakhstan of 2013, and October September initiative he proposed the of building Introduction
XXIII (78) - 2017 Vol.XVIII, No. 66 - 2012 130 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 131 The The 1 At present, OBOR present, At 2 in 1992, was a security cooperation mechanism and military in 1992, was a security cooperation 3 century extended to Central Asia, this mechanism is increasingly Asia, this mechanism is increasingly Central to extended century st Kenya, Tanzania and Mozambique. European Union, and can be connected to Japan, South Korea and other East Asian countries. Emirates and Arab United Bahrain, the Saudi Arabia, Qatar, Iraq, Kuwait, Bangladesh, Sri Lanka, India, Pakistan, Iran, Somalia, Djibouti, Eritrea, Sudan, Egypt, Yemen, includes routes coast west Ocean Indian the and Gulf Red the Oman; Iran, Afghanistan, Mongolia, Belarus, Armenia, Ukraine and Moldova; the radiation area includes Western Asia, the includes Western area radiation the Moldova; and Ukraine Belarus, Armenia, Mongolia, Afghanistan, Iran, The Southeast Asia routes includes China and ASEAN as a whole; the South Asia and the Persian Gulf routes includes Gulf routes Persian Asia and the South the as a whole; includes China and ASEAN Asia routes Southeast The and Uzbekistan. Kazakhstan, Tajikistan, Kyrgyzstan The countries include The core area includes China, Russia and five Central Asian countries; the extension area includes India, Pakistan, 3 2 1 the 21 the related to security-oriented cooperation. Security Treaty Organization” (CSTO), signed by Russia and Central Asian (CSTO), signed by Russia and Central Organization” Treaty Security countries alliance in Central Asia. But with the influence of the United States in traditional security areas has been continuously expanded, especially expanded, especially continuously has been areas traditional security in the economic field, which has enhanced the overall competitiveness “Collective the In addition, cooperation. regional through of the region criminal activity requiring security cooperation. In recent years, its years, recent In cooperation. security criminal activity requiring cooperation in the fields ofeconomy, trade, culture and other non- evolved over the past decade and more. The SCO now participates in the SCO now The past decade and more. the evolved over fight against terrorism, separatism and extremism at its core, combating trans-border crime and other organized smuggling, transnational drug The Shanghai Cooperation Organization (SCO), established in 2001 The Shanghai Cooperation to has military trust, border disputes and create border resolve regional Core area (Central Asia) security cooperation “One Belt” regional security cooperation paper is limited to the various security mechanisms (organizations) formed the various security mechanisms paper is limited to trans-regional cooperation. by multilateral and regional security cooperation presents a multi-level cooperation pattern, a multi-level cooperation presents security cooperation regional and regional multilateral including bilateralcooperation cooperation, discussed in this cooperation security situation of current The cooperation. sections: Southeast Asia routes, South Asia and the Persian Gulf routes, Persian Gulf and the Asia South Asia routes, Southeast sections: routes. west coast Indian Ocean Gulf and the and Red into three parts: the core area, extension area and radiation area. radiation and area extension area, core the parts: three into Red Persian Gulf, the South Asia, the Asia, Southeast through “One Road” three be divided into can Coast routes, Ocean West Indian the Sea and scope, the “One Belt” area across the Eurasian continent can be divided be divided can continent Eurasian the area across Belt” the “One scope, After 4 Summit in 2011. th 6 and embarked on a regional security-oriented cooperative path.cooperative security-oriented on a regional and embarked 5 Uzbekistan joined in 1998 and withdrew from the organization in 2005. The organization was renamed the Community the renamed was organization The 2005. in organization the from withdrew and 1998 in joined Uzbekistan of Ethnic Communities at the Kiev Summit in May 2006. the “protectorate” model represented by Nepal. Here Eastern Europe is the region of the former Soviet republics, including Belarus, Armenia, Ukraine and Moldova. former Soviet republics, including Belarus, Armenia, is the region of the Here Eastern Europe and by Pakistan represented alliance mode by India, the represented mode nonalignment modes include the These The “Guam Group” is an informal regional coalition formed in 1997 by Georgia, Ukraine, Azerbaijan and Moldova. 6 4 5 Security and Cooperation in Europe (OSCE) seeks to prevent and resolve conflictsresolve and prevent to seeks (OSCE) Europe in Cooperation and Security and to restore the damage caused by war. European security governance. The European Union (EU) has built up its securitybuilt up its Union (EU) has European The governance. European security than half a century of unremitting efforts,and defense capabilities through more and is playing a growing role in resolving regional conflicts. The Organization for a new strategic concept in 1991, 1999 and 2010 successively, and has playeda new strategic concept in 1991, 1999 and participating in the process ofan important role in intervening, resolving security threats has resulted in the formation of three major regional organizations North Atlantic Treaty Organization (NATO),for European security cooperation. The security environment in Europe, proposedwhich responds to changes in the The long-standing historical interaction between European security actors andThe long-standing historical interaction Radiation zone (Europe)Radiation security cooperation and Moldova. Therefore, these countries had such a strong tendency of de- and Moldova. Therefore, these countries establishedand system, security collective the join not did they that Russianization the “Guam Group”. a strong security dependence on Russia, Belarus and Armenia have built andependence on Russia, Belarus and a strong security Russia through the CSTO. But there areexclusive military-political alliance with large conflicts of interests in the region, specifically between Russia and Ukraine Commonwealth of Independent States (CIS) security system, focused on theon focused system, security (CIS) States Independent of Commonwealth interaction model. WithRussia, without a complex network relationship with cooperation to combat terrorism and piracy at its 17 cooperation to combat region is based on the in the Eastern European Security cooperation security environment of peace and mutual trust. The South Asian Association for of peace and mutual trust. The security environment intraregional security (SAARC) proposed strengthening Regional Cooperation the Cold War, the South Asian countries gradually abandoned the idea of seeking abandoned the countries gradually War, the South Asian the Cold alone security formed a regional the area initially the countries in exchanges, Through friendly This Eastern Europe. in South Asia and two sub-regions mainly includes area Expansion areaExpansion security cooperation
XXIII (78) - 2017 Vol.XVIII, No. 66 - 2012 132 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 133 century, th The six countries of the Gulf have given priority to priority given Gulf have the of six countries The 7 century, these countries continued to increase their security identity these countries continued to increase their century, The six countries refer to the United Arab Emirates, Oman, Bahrain, Qatar, Kuwait and Saudi Arabia. Emirates, Oman, Bahrain, Qatar, Kuwait and to the United Arab The six countries refer st 7 amongst themselves to remedy their shortcomings after the war. In the amongst themselves after the war. to remedy their shortcomings 21 of face the in collaboration and communication their strengthened and West to achieve self-protection during the Gulf crisis and war, and on and war, crisis and Gulf the during self-protection achieve to West cooperation security strengthen to continued they hand, other the military cooperation and defense cooperation since the establishment military cooperation and defense cooperation 20 the end of the (GCC). At Council Cooperation Gulf the of an alliance with the form to sought countries hand these one the on and will not be repeated here. The security cooperation between the between security cooperation The here. be repeated and will not Middle East and the Persian Gulf mainly the six focuses on countries’ communities. security Security cooperation in the South Asian region has already been discussed, Asian region Security cooperation in the South Regional security cooperationRegional in the South Gulf route Asia and Persian order. In addition, it is an important feature of security cooperation in theorder. In addition, it is an important mechanism dominated by Westernregion that the security cooperation regional security cooperation. powers will become the leader of time promoted the establishment of a mechanism for the meeting of defensetime promoted the establishment of the ARF in building a regional securityministers to address the shortcomings In the new century, ASEAN has actively consolidated and expanded securityexpanded and consolidated actively has ASEAN century, new the In cross- in strengthened cooperation a security community, built cooperation, and combating drugs, and at the sameborder crimes such as anti-terrorism security mechanisms in Southeast Asia include the ASEAN Regional Forum in Southeast Asia include the security mechanisms and (CSCAP) Pacific Asian the in Cooperation Security for Council the (ARF); others, which enhance their status and influence in regional security affairs. in South-East Asia, the weakening of ideology, and the gradual emergence the weakening of ideology, and in South-East Asia, of specific peripheral security issues after the Cold War. The various forms of Southeast Asian Nations (ASEAN), the organization tried to establish Nations (ASEAN), the organization Southeast Asian This cooperation. security non-traditional and security ASEAN-dominated in the security situation in a context of drastic change cooperation came In order to make up for the weakness of each country in the Association of country in the weakness of each to make up for the In order Regional security cooperationRegional in the Southeast route Asian “One Road” regional security Road” “One cooperation influence. In recent years, the world’s great powers in the area of the OBOR have put area of the powers in the world’s great In recent years, the regional their enhance initiatives, seeking to regional own their forward Great power geopoliticalGreat games power Traditional security challengesTraditional cooperation, but also faces a huge security risk. This paper divides risk faces a huge that but also cooperation, security. into traditional security and non-traditional In this vast territory, the OBOR initiative not only deepens regional economic only deepens regional OBOR initiative not the In this vast territory, OBOR initiative of the dual security challenges OBOR initiative of the dual of these resolutions, the international community, including China, hasof these resolutions, the international escort missions. With the concertedimplemented multinational naval work has achieved remarkable results. efforts of all parties, this anti-piracy active cooperation through the formation of a multi-level anti-piracy through the formation of active cooperation Nations Security Council (UNSC) has adopted resolutionsUnited The system. combat piracy. Under the authorization1816, 1838, 1846, 1851 and 1897 to year (Chalk 2010: 96). In response to the threat of piracy, the Indian Ocean 96). In response to the threat of year (Chalk 2010: launchedhave community international the and countries Coast West to Kenya, Tanzania, the Seychelles, Madagascar and Mozambique. Piracy the Seychelles, Madagascar to Kenya, Tanzania, inis one of the busiest waters in the Gulf of Aden which is especially a threat of the world’s oil every at least 20,000 ships carry 12% the world and where Security cooperation in this region focuses primarily on piracy off Africa’s in this region focuses primarily Security cooperation Sea and the Gulf of Aden threat extends from the Red east coast. The pirate Regional security Coast cooperationRegional routes in the West Indian Ocean pressure. This security cooperation has been able to play a certain role in in role certain a play to able been has cooperation security This pressure. stability. maintaining the situation in Iraq, the Iranian nuclear issue and other complex areas of areas complex other and issue nuclear Iranian the Iraq, in situation the
XXIII (78) - 2017 Vol.XVIII, No. 66 - 2012 134 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 135 concept; 8 2010). This concept was first proposed in 2010 by US Secretary of State Hillary Clinton in Hawaii (U.S. Department of State 8 In 2002, Russia, India and Iran co-sponsored the “North-South Corridor “North-South In 2002,the Russia, India and Iran co-sponsored Project”, proposing that Europe’s international transport corridors run cooperation promoted by China’s “Silk Road Economic Belt”. the one hand, is conducive to balancing the influence of the United States United the of influence the balancing to conducive is hand, one the hand, the situation in Central Asia and Russia in Central Asia. On the other regional to conducive not complicated and therefore more is becoming and demands that all parties settle their disputes through dialogue and dialogue disputes through their all parties settle demands that and on EU, the of involvement The framework. multilateral a within cooperation Pipeline”. The EU has actively invested to ensure its own energy supply its own energy actively invested to ensure EU has Pipeline”. The security at the same time as enhancing its influence in Central Asia. about the worsening of regional disputes addition, the EU is concerned In Central Asia and neighboring countries in energy, commerce, personnel commerce, energy, in countries neighboring Asia and Central Gas Natural “Nabucca the of construction the through information, and balancing China with its neighbors. links with In 2009, Plan” to strengthen the EU proposed the “New Silk Road surrounding China’s maritime territories to vigorously support its allies in that vigorously support to territories China’s maritime surrounding of initiative offshore the implementing by finally and disputes; related and rebalancing” initiative by: continuously actively subcontinent; creating Indian the the to borders Indo-Pacific Asia-Pacific the extending strengthening the Asia-Pacific military force; using the territorial disputes which has influenced economic cooperationbetween of the of cohesion the reduction and China, thus leading to countries Central Asian SCO. The United States has also continued to promote the “Asia-Pacific maintain the leading position of the United States in Eurasian hinterland position of the United States maintain the leading development. China’s influence has been weakened in the region, described the “new Silk Road” program to the international community at to the international community Silk Road” program described the “new proposed program The September. in meeting General Assembly UN the to should make investments countries neighboring that Afghanistan's the establishment of a link between South Asia, Central Asia and West Central Asia Asia, between South of a link the establishment further She network. development and economic a transport Asia, and Asia”, edited by scholar Frederick Starr in 2007, Secretary of State Hillary Hillary State of Secretary 2007, in Starr Frederick scholar by edited Asia”, Central in July 2011 Clinton, the “Greater India, proposed in Chennai, for (2011) advocated Clinton concept. Silk Road” “new and idea Asia” Based on “The New Silk Road: Transport and Trade in Greater Central Central in Greater and Trade Transport Silk Road: New “The on Based strong marine initiative is channel security. bound to affect China's energy to be implemented through the Indian Ocean because geopolitical and the Indian Ocean because to be implemented through impact negative a has 2014). This (Mohan strong too are factors security India's Asia. In particular, in South countries with China's cooperation on so-called “string pearl initiative” is viewed by India as a strategic siege. Raja Mohan doubts whether India will allow China’s maritime Silk Road “Land Silk Road” together. India, based on its geographical advantages, its geographical India, based on “Land Silk Road” together. against the has guarded and Indian Ocean the dominate to is seeking Chinese the Indian Ocean. In particular, forces in the external existence of India, Iran and Afghanistan promote the South Asian “Southern Silk Road” Asian “Southern South the India, Iran and Afghanistan promote construction project together, trying to link the “Maritime Silk Road” and their military presence. These initiatives are intended to enhance a “line their military These presence. of defense” to contain China. Asia-Europe Silk Road, and a geopolitical trader. Japan is also actively Japan a geopolitical trader. and Silk Road, Asia-Europe developing Pacific and Indian Ocean coastal countries to strengthen rich oil and gas resources in the region to ensure the security of its energy security of the ensure to region in the oil and gas resources rich supply. In October 2013, Abe’s cabinet intensified its concern with Asia new the for point starting is the Tokyo that out pointing Europe, and by strengthening economic cooperation with the Central Asian countries with the cooperation economic by strengthening internationalization development and the economic while promoting the made use of Japan has same time, the At level of these countries. proposing the establishment of a “freedom and prosperity of arc” in 2006. arc” of and prosperity a “freedom establishment of the proposing Japan has enhanced its political and economic influence in thisregion Japan put forward the “Eurasian diplomatic initiative”Japan put forward Cabinet of in the establishment of the as 1997, and proposed as early Hashimoto Ryutaro by 2004, followed in mechanism dialogue Japan” Asia + “Central the cooperation between China and Central Asian countries. China and Central Asian cooperation between program during the Sino-Russian summit meeting in May 2014, during the in May 2014, during Sino-Russian summit meeting the during program Conference on Interaction and Confidence-Building Measures (CICA), Russia in Asia was suspicious of China, which then influences all-round the Cold War, Russia has always regarded Central Asia as its traditional as its traditional Central Asia always War, Russia has the Cold regarded sphere of influence. Despite the supportof the “Silk Road Economic Belt” regional regional influence. In recent years, Russia has proposed the initiative of aiming Union” vision, namely the “Eurasian of Central Asia, the integration of the CIS. After the process at accelerating integration of economic through India, Iran, the Caucasus and Russia, to maintain their traditional their traditional to maintain and Russia, the Caucasus Iran, India, through
XXIII (78) - 2017 Vol.XVIII, No. 66 - 2012 136 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 137 defined. Between Kyrgyzstan and Uzbekistan, the Fergana border is also not clearly defined. Kyrgyzstan has in Uzbekistan an enclave village of 2014, the two countries entered an armed conflict in the borderBetween area. Tajikistan and Uzbekistan, twenty percent of the border is not been completed. Tajikistan’s enclave, Vorukh, lies in Kyrgyz territory. The is 911 with only 567 between the two countries kilometers long, border On 11 January 70 disputed areas. than delineated and more kilometers of the Soviet Union, in the “One Belt” area a number of sovereign states sovereign of a number area Belt” “One in the Union, Soviet the of has not countries these between demarcation Border have emerged. On land, after World War II the Kashmir dispute between India and Pakistan, On land, after World War II the Kashmir dispute territorial Palestinian-Israeli and the dispute Sino-Indian border the disintegration the with War, Cold the After resolved. been have still not right to formulate a new round of trade rules. right to formulate a new round of term, China cannot find a solution acceptable to most of the disputing all-round the help deepen This will not situation. tense ease the parties to China and ASEAN, thus affecting China’s overall between cooperation economic zone in the East China Sea between China and Japan. The China Sea between East in the zone economic leaders the dispute between disputes is the these maritime essence of short the In China. rise of the and followers, and their order regional of the Philippines and Vietnam intensified the “Spratly islands sovereignty” Diaoyu islands the and an exclusive over exist disputes dispute; there China and some Southeast Asian countries; “China National Offshore “China National Asian countries; Southeast China and some Sino- so-called caused the 981” drilling rig (CNOOC) Oil Corporation Vietnamese “Paracel islands dispute in May 2014; sovereignty” China, On the ocean, disputes include: the “South China Sea dispute” between China Sea dispute” between include: the “South On the ocean, disputes the OBOR area and the results of dispute settlement directly affect the directly affect the and the results of dispute settlement the OBOR area initiative. of the implementation of the security guarantee The current disputes include: For historical reasons, there are various territorial and island disputes in are various territorial reasons, there historical For Territorial disputes and island the South China Sea issue in economic, political and military competition military and political economic, issue in Sea China the South with China, and enhanced the influence of Asia-Pacific affairs radiation, Asia. Southeast of direction the in pressure strategic China's increasing thus In addition, India actively pursued the “Eastward” initiative, is involved in involved is initiative, “Eastward” the pursued India actively In addition, The destructive activities of the “three forces” (terrorist forces, religious forces, (terrorist forces” “three the activities of destructive The The terrorism threat Non-traditional security challenges countries will increase the economic cost of investment and reduce co- the economic cost of investment and increase will countries China’s overseas interests. operation efficiency, and thus affect increasingly becoming potentially dangerous countries or regions. As thecountries dangerous increasingly becoming potentially future is bound to increase investmentOBOR initiative to promote China’s theseexchanges, personnel frequent imports, increase region, the in Uzbekistan Railway, which increases the difficulty of project coordination. In coordination. project of difficulty the increases which Railway, Uzbekistan Ocean, Yemen, Iran, and Pakistan areaddition, Somalia along the Indian are becoming normalized. Kyrgyzstan announced that it will activelyare becoming normalized. Kyrgyzstan the “One Belt”, while in December 2013participate in the construction of the construction of the China-Kyrgyzstan- it announced its withdrawal from Kyrgyzstan and Tajikistan have been through ups and downs. In particular, are still sharp and seasonal protestsKyrgyzstan’s North-South contradictions national interests and recognition of a common sense of belonging isnational interests and recognition more difficult, which leads to continuous indevelopments political example, For policy. foreign and internal lack of formulating important and ethnic and religious problems. These countries generally practicegenerally countries These problems. religious and ethnic and politicalthe government, for struggle the to due However, politics. party and uncertain. Integration ofsituation in some countries is vulnerable Most of the countries in the OBOR area are developing countries which in the OBOR area are developing Most of the countries class contradictions complicated factors such as social are affected by Regional political turmoil in individual countriesRegional of political mutual trust, security and economic cooperation, and is not cooperation, and economic security mutual trust, political of region of China. the stability of the western conducive to maintaining have become an important factor in the worsening situation in the region. region. situation in the worsening the in an important factor have become the SCO’s future affect Asia directly negatively in Central The disputes Kyrgyzstan. These enclaves have clashed with local residents. In addition, addition, In local residents. with clashed have enclaves These Kyrgyzstan. of water on the sharing compromising are not countries the three disputes and water enclave disputes territories, border These resources. Barak, while Uzbekistan has the enclaves of Sokh and Shakhimardan in Shakhimardan Sokh and of the enclaves has Uzbekistan while Barak,
XXIII (78) - 2017 Vol.XVIII, No. 66 - 2012 138 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 139 Kaplan （ it is very important to maintain the secure passage of the Malacca Strait, passage of the secure maintain the to it is very important If oil is the blood of the industry, then the channel connecting the Indian the connecting channel the then industry, the blood of If oil is the Malacca Straits channel, the through and Middle East, the from Ocean Therefore, growth. economic lifeline of China's the has actually become 2009: 19-20). Most of China's ocean-going oil trade is concentrated in the in is concentrated oil trade ocean-going China's of 2009: 19-20). Most Africa. North and Middle East the to Indian Ocean Malacca, the Straits of Mendoza, the Strait of Hormuz and the Strait of Malacca, with forty and the Strait of Malacca, with Strait of Hormuz the Mendoza, percent of the world’s trade flowing through the Strait of Malacca and forty percent of crude oil trade flowing through Hormuz Strait world’s container shipments and seventy percent of the transportation of seventy percent of the transportation world’s container shipments and Ocean Indian The Pacific. the to East Middle the from products petroleum Strait of such as the global trade for important strategically are routes commercial trade and sixty-five percent of the world’s total oil volume the providing half of Indian Ocean shipping, with the ocean through go Maintaining secure access is in the an important consideration sea OBOR initiative, which will make sure the implementation of the global of percent Ninety off. cut than rather stays open channel Sea channel safety which are a threat to Chinese people’s personal and property safety. which are a threat to Chinese people’s affecting regional stability. In addition, in recent years East Turkistan In addition, in recent stability. regional affecting and at home each other linked to forces, terrorist (ETIM) Islamic Movement from time to time to carry out attacks abroad against Chinese targets, organizations. The United States withdrawal of troops from Afghanistan in in Afghanistan from troops States withdrawal of United The organizations. 2014 is likely to lead to an escalation of the conflict within that territory, resulting in Islamic extremism and terrorism which may “overflow”, are characterized by a cross-cutting of personnel, guiding ideology, of personnel, guiding by a cross-cutting are characterized terrorist links with international and other fragmentation, decentralization, the establishment state with political of an Islamic As a and religious unity. situation, and changes in the international anti-terrorism result of changes region the in organizations extremist security situation, regional in the political aims, organizational forms, personnel composition and activities, activities, and composition personnel forms, aims, organizational political and advocate secular regimes is that they oppose feature common their are an important factor threatening the implementation of the OBOR the of implementation the threatening factor an important are threat security non-traditional largest the increasingly becoming initiative, organizations’ extremist between differences the Despite region. in the extremists, and national separatist forces), which are the core of terrorism, of terrorism, core the which are forces), separatist national and extremists, l Piracy ort of the International Maritime Bureau (IMB), Bureau (IMB), Maritime in 2013 International ort of the piracy off the smuggling, specifically the spread of opium production in Afghanistan to Asia the world. The “drug economy” and religious extremism in Central affected the economic development and social stability of all countries social stability of and development economic the affected include: a) drug crime organized transnational types of involved. Current in the OBOR initiative. At the same time, transnational organized crime, one in the OBOR initiative. crime, At the same time, transnational organized of the “three major world catastrophes” according to the United Nations seriously General Assembly, has become increasingly rampant and has China has been promoting economic and trade relations among countries economic China has been promoting own network, thus blocking the strategic objectives of OBOR. own network, thus blocking the strategic organized crimeTransnational trade rules, and hinder the process of economic and trade cooperation trade and economic of process the hinder and rules, trade TTP and TTIP build on the interests of the West’s between Asia and Europe. in the Asia-Pacific region. At the same time, Europe and the United States United the and Europe time, same the At region. Asia-Pacific the in Transatlantic Trade and Investment Partnership hard to build the work and economic liberal international more advocate (TTIP), agreement regional integration in East Asia and to divide the ASEAN-led Regional in regional integration (RCEP), which has gradually Comprehensive Economic Partnership formed through technology and investment, and to promote China’s economic promote and to and investment, technology through construct States has proposed to United The and rebalancing. upgrading the Trans-Pacific Partnership Agreement (TTP) hinder to the process of and trade ties with Southeast Asia, Central Asia, the Middle East and the Asia, Central Asia, Southeast with ties trade and space a broader and develop mutual cooperation further to Europe, prosperity and development regional promote to development, for The purpose of China’s OBOR initiative is to establish closer economic establishcloser OBOR initiative is to China’s of purpose The Regional economic integrationRegional pressure coast of Somalia declined significantly; it has fallen from still exists, attacks of threat the 15 in 2013 (ICC 2014). However, 2011 to 237 events in Somali coast and the Gulf of Aden. especially off the challenged mainly from the pirate threat. According to the Globa the to According threat. the pirate from mainly challenged Rep the Malacca Strait, the challenge mainly comes from the United States, States, United the from comes mainly challenge the Strait, Malacca the is beset by a Strait of Hormuz Strait. The the tries to control which also is Strait Mande while the region, the within situation security deteriorating the Strait of Hormuz and the Mande Strait on the “One Road”. Regarding Regarding Road”. “One the on Strait Mande the and Hormuz of Strait the
XXIII (78) - 2017 Vol.XVIII, No. 66 - 2012 140 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 141 in 2000 and reintroduced a multilateral initiative in Central Asia. foreign ships. Ahudul Sahibi, former mayor of Kabul, Afghanistan, argues thatforeign ships. Ahudul Sahibi, former mayor of Kabul, Afghanistan, argues withChina attaches great importance to the development of the Silk Road regard to energy efficiency and safety, having initiated the Silk Road Initiative security cooperation. As of August 2016, China has sent 24 fleet escort missions, escort fleet 24 sent has China 2016, August of As cooperation. security ships.and carried out security escorts for more than 6,000 Chinese and foreign andMoreover, it has successfully assisted and rescued more than 60 Chinese the implementation of OBOR, and ultimately achieve a mutual beneficial andbeneficial mutual a achieve ultimately and OBOR, of implementation the in the region has been to upholdwin-win situation. In fact, China’s presence involving a large number of sovereign state disputes which no country can facecan country no which disputes state sovereign of number large a involving need only to establish a more open andand resolve on its own. Therefore, China inparticipate actively to region the mobilize to order in concept cooperative Traditional and non-traditional security in the OBOR region is intertwined,Traditional and non-traditional security Cooperation to achieve the of safe provision public goods strengthen its own power, but also needs to build on and pay attention to pay attention and build on but also needs to its own power, strengthen of safe public points: 1) provision goods; 2) three managing the interests Pakistan’s ‘pivot’ role. of great powers; 3) Recognizing connection, trade facilitation, currency circulation, [and] community currency trade facilitation, connection, to only needs its security risks, China not manage China must consensus”, and economic share in China’s western inland areas. It will ensure the inland areas. It will the ensure share in China’s western and economic In trust. political mutual strengthen and transport maritime safety of achieve “policy in order to communication, transportation the future, Through the implementation of the OBOR initiative, China can form a new form OBOR initiative, China can the implementation of the Through up in all pattern of opening and border directions along its coast, inland will areas. Such openings raise the level also of economic development China’s choices regarding OBOR security issues OBOR choices regarding China’s crime, such as money laundering and telecommunications fraud. and telecommunications as money laundering crime, such China’s labor export and overseas employment at the same time, resulting time, resulting the same at employment and overseas export labor China’s economic c) transnational service; labor foreign with crime variety of a in combined, impact on China’s western security; b) illegal immigrant crime, crime, immigrant b) illegal security; western China’s on impact combined, power competition in the OBOR region will follow a normal trend, the essencepower competition in the OBOR region will follow a normal trend, the powers.of which is the shift between emerging powers and conservative In addition, regional security issues introduce the great power factor. GreatIn addition, regional security issues introduce the great power factor. the principle of “non-interference in internal affairs”, play a constructive role inthe principle of “non-interference in internal affairs”, play a constructive stabilitybringing relevant parties together, and resolve and maintain regional peacefully when facing the political turmoil in the countries concerned. account the economic interests of the other parties to the disputes anddisputes the to parties other the of interests economic the account consultations. China should adhere toactively resolving it through bilateral of the region’s countries. Specifically regarding China’s territorial and island to adhere to the “sovereign to me,disputes, the country should continue shelving differences and seeking joint development” principle, to take into specific to particular countries, and territory and island disputes more based China should pay attention to the interestson historical reasons. In this regard, interests of great powers factors domestic to related issues security facing mainly is initiative OBOR The Being sensitive toBeing sensitive the interests of countries in the region, the especially yuan “China - ASEAN Marine Cooperation Fund” in 2011, but ASEAN is still but ASEAN in 2011, Fund” Cooperation Marine yuan “China - ASEAN these funds. not clear how to apply and use requires consideration and dedication. On many occasions, China has On many occasions, China has and dedication. requires consideration maritime security China Sea South the promote repeatedly proposed to 3 billion RMB a up set has and action, protection ecological and order ensure economic security and achieve the desire of a “community of a “community of desire achieve the security and economic ensure measures forward, put is public goods idea of the Once destiny”. common implementation the and timely manner, a in follow be should plans and establishment of a variety of regional security funds for national security national security for security funds regional a variety of establishment of cooperation, based on the principle of economic profit-making, so as to “counter-interference” (Rourke 2012) force vis-a-vis United States. But 2012) vis-a-vis force the (Rourke “counter-interference” In obvious. will be areas security non-traditional in China’s advantages the for advocate can China strength, economic increasing its to addition Despite China’s limited defense capacity defense capacity China’s limited Despite traditional security in the field, China’s current maritime military power is nothing more than a but also needs to further implement specific practices. This paper argues region in the countries needs of the the understand to China needs that and actively public provide security governance. goods for regional In the future, China not only needs to put forward the concept of security, of security, concept the to put forward needs not only China future, In the
XXIII (78) - 2017 Vol.XVIII, No. 66 - 2012 142 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 143 strategic cooperative partnership can ensure that this role can be played. “One Road” have common areas, mainly including India and Pakistan in South“One Road” have common areas, mainly including India and Pakistan mustAsia. China and India have long-standing disputes over territory, so China all-weatherChina-Pakistan end, this To role. “pivot” Pakistan’s to attention pay link “One Belt” and “One Road”, the “two corridors” are too broadly connected the realto each other. Facing security challenges here is not obvious, but andBelt” a “pivot” state. The “One of role the lies in playing interaction effective Road”. Although the strategic concept of the Bangladesh-China-India-BurmaRoad”. Although the strategic concept can(CPEC) Corridor Economic China-Pakistan the and Corridor Economic (BCIM) In geographical distribution, the OBOR initiative of security assurance in the southIn geographical distribution, the OBOR interaction between “One Belt” and “Oneand north depends on the effective Recognizing Pakistan’s “pivot” role “pivot” Pakistan’s Recognizing built, the two countries can deal with common challenges through a varietybuilt, the two countries can deal with mechanisms. of existing dialogue and communication political unrest in the region. Therefore, Sino-US security cooperation shouldpolitical unrest in the region. Therefore, cracking down on transnationalbe more related to anti-terrorism, anti-piracy, is confidence as Gradually, areas. non-traditional other and crime organized global hegemony. Sino-Russian coordination can easily be regarded as aas be regarded easily can coordination hegemony. Sino-Russian global Moreover, there is a strong factor for themechanism to “exclude the US”. avoidingdisputes: islands and territorial in involved become to States United there is a structural “security dilemma” between China and the United StatesUnited the China and between dilemma” structural “security there is a in the traditional security field. China’s development is “zero-sum” next to US US, sharing with China the common mission of national rejuvenation. China and the “Eurasian Union” need a certain degree safeguard the “Silk Road of Economic belt” in “docking” the field of to security. At present, jointly of cooperation, promote cooperation at different levels, strengthen political cooperation at different of cooperation, promote to China than to the of common interest. Russia is closer trust and seek points At present, China, the US, and Russia can make full use of existing bilateralexisting of use full make can Russia and US, the China, present, At and multilateral cooperation mechanisms, adopt flexible and diverse forms interests in the region, while Russia, as a regional, traditional country, still has a traditional Russia, as a regional, in the region, while interests in the region.various security issues on the certain influence in great powers as “stakeholders”, to strengthen cooperation with each cooperation strengthen to as “stakeholders”, powers in great and Russia playThe United States relations. properly coordinate other and of range wide a has US the country, hegemonic a As here. role essential an Therefore, China should address the security risks in the region while bringing region while in the risks the security address should China Therefore, disputes, the risk to sea-lanes has been greatly reduced. majority of security risks. Through the international ocean and resolve island the years to combat piracy, control in recent community’s efforts of time. The time advantage of land transportation is by of time. The time advantage of land transportation also affected various security risks - the security challenges facing the OBOR initiative vast the for above - wherein land security challenges account mentioned in China opened the China Railway Express, but the traditional maritime traditional the Railway Express, but China the China opened in period long very a for position dominant a in will remain trade transport actively promote land-based transport infrastructure construction, which construction, infrastructure transport land-based actively promote we need that sea. But I believe over goods transporting is quicker than Several cities future. in the marine resources use of the give priority to to both land and sea. However, in implementation, “One Belt” seems to seems Belt” “One implementation, in However, sea. and land both rail high-speed promotes Chinese government take priority, and the to opportunity as an out” “going manufacturing equipment and other The OBOR initiative requires that China should work together to strengthen The OBOR initiative work together requires that China should balanced open economy, involving development of a comprehensively Conclusion ensuring energy security in the Gulf region. ensuring energy repeatedly stressed that it will not set up military bases overseas, this does that it will set up military repeatedly stressed not port in Pakistan. Its location China’s rational use of the Gwadar affect not is important for the fight against piracy in the Indian Ocean westcoast constraints. China can use the media to participate in Indian Ocean Indian Ocean in participate media to the use can China constraints. China has Although sea lanes. safety of the ensure to Pakistan, affairs in between India and Pakistan to contain India and to reduce its security reduce to India and contain to Pakistan India and between China is not Road”, “One the In direction. southwest the from pressure a coastal state of the Indian Ocean and also subject to the naval force States and Pakistan to “bridge” and strengthen security cooperation cooperation security strengthen and “bridge” Pakistan to States and the belligerence China can use United States. China and the between its own geopolitical conditions, including ETIM forces in the Central Asian Asian Central in the forces ETIM including conditions, geopolitical its own of western safety the ensure to organizations, terrorist and various region United the between the traditional relationship can use China. China In the “One Belt”, China can use Pakistan’s influence on Afghanistan and Afghanistan on influence Pakistan’s use can China Belt”, “One the In
XXIII (78) - 2017 Vol.XVIII, No. 66 - 2012 144 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 145 favorable international environment for China’s modernization drive. environment for China’s favorable international will help safeguard China’s national interests, including security, build a security, build a including will interests, China’s national help safeguard enhance China’s image of China, responsible a power, and create soft actively respond to various security risks and challenges, and successfully successfully and and challenges, risks security various to respond actively will countries China and other Eventually, the OBOR initiative. implement which interests”, of “community destiny” and a of a “community become In the future, China will work with all the countries in the region to region the in countries all the with work will China future, In the China The Indian The Indian CRS Report for CRS Report https://icc-ccs. [Accessed 20 http://indianexpress. , 16(2): 89-108. http://www.state.gov/ , [online] 20 July. Available , [online] 20 July. Century: Power Plays in the Power Century: st America’s Engagement in the America’s Engagement , 88(2): 16-33. , [online] 22 September. Available , [online] 22 September. [Accessed 20 November 2016]. [Accessed 20 November 2016]. , 4: 76-95. [Accessed 20 November 2016]. , [online] 15 January. Available at: Brown Journal of World Affairs Foreign Affairs U. S. Department of State U. S. Department [online]. Available at: https://2009-2017.state.gov/secretary/20092013clinton/ https://2009-2017.state.gov/secretary/20092013clinton/ , March 23. ICC-CCS [Accessed 20 November 2016]. [Accessed 20 November , [online] 15 February. Available 15 February. , [online] at: Century. st Asia-Pacific. secretary/20092013clinton/rm/2010/10/150141.htm November 2016]. Congress Indian Ocean. Congress. for Capabilities and Issues - Background org/news/904-somali-pirate-clampdown-caused-drop-in-global- piracy-imb-reveals and Responses. at: rm/2011/09/173807.htm reveals. 21 at: rm/2011/07/168840.htm State of S. Department U. road/2/ International Studies Express k- com/article/opinion/columns/will-india-join-chinas-maritime-sil U.S. Department of State, 2010. State, of Department U.S. Rourke, R. O., 2012. China Naval Modernization: Implications for U.S. Navy U.S. Implications for R. O., 2012. Modernization: Rourke, China Naval Kaplan, R. D., 2009. Center Stage for the 21 for Kaplan, R. D., 2009. Stage Center Chalk, P., 2010. Piracy off the Horn of Africa: Scope, Dimensions, Causes Scope, Dimensions, Africa: of 2010. Chalk, P., Piracy off the Horn ICC, 2014. Somali pirate clampdown caused drop in global piracy, IMB clampdown caused drop 2014. Somali pirate ICC, Clinton, H., 2011b. Remarks at the New Silk Road Ministerial Meeting. Silk Road New 2011b. Remarks at the H., Clinton, Clinton, H., 2011a. Remarks on India and the United States: a vision for the the a vision for States: United India and the 2011a. Remarks on H., Clinton, Mitrovic, D., 2016. The Belt and Road: China’s Ambitious Initiative. China’s Ambitious Road: Belt and 2016. The D., Mitrovic, Mohan, C. R., 2014. Mohan, Will India Join China’s Silk Road?. Maritime Bibliography
XXIII (78) - 2017 Vol.XVIII, No. 66 - 2012 146 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 147 ) is Associate Professor Professor ) is Associate [email protected] ( investment in CEE. investment in on the relationship between Croatia and the international the and Croatia between relationship the on Chinese of risk political the and NATO) (EU, organization researches China’s peripheral security crisis control in the crisis control peripheral security China’s researches he addition, In (17BGJ037). Road” Belt, One “One of Context focusing Europe East Central study of in the also participates dissertation in 2014. He now (NSSFC) that China of Fund Social Science National the presides over the project of (SUIBE) P.R.C. He defended his PhD on the topic of the study of the study on the topic his PhD He defended (SUIBE) P.R.C. in China’s modernization strategy security peripheral of the doctoral the published and University Tongji at 2013 in process employed by the Department of Humanities and Sciences at and Sciences Humanities of Department by the employed Business Economics and of International University Shanghai Liu Haiquan
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focuses on the perceptions of the Chinese and its partners on the Belt and Road and its partners focuses on the perceptions of the Chinese on the Belt and Road 1
the Belt and Road Initiative”. This paper is funded by the project of China National Fund for Social Sciences: “The 16+1 cooperation model under
1 KEY WORDS: of domestic needs and foreign policy. Finally, the author points out that there are three paradoxes the author points out that there are three paradoxes Finally, of domestic needs and foreign policy. which exist in the differences between China and its partners, which is the biggest challenge of the Belt and Road Initiative. domestic stability. In fact, the difference between foreign and Chinese perceptions is based on the perceptions is based on the In fact, the difference between foreign and Chinese domestic stability. the perception of great powers, and the combination relative national condition of the two sides, This article foreign opinions about the initiative, one “inequality” Initiative. The author summarizes the existing to achieve and two ways in which China wants to create of the market, three goals that China wants Abstract Ma Junchi on the Belt and Road Initiative on the Belt and Road The Challenge of Different Perceptions Perceptions Different The Challenge of ISSN 1848-5782 1848-5782 ISSN UDC 338.1:327(510) DOI 10.1515/cirr-2017-0011 CIRR XXIII (78) 2017, 149-168 XXIII (78) CIRR The Greek Piraeus port is also another successful case, which will help case, which another successful Piraeus port is also The Greek 2 railway works better than the others, since it brings more goods, especially high value added goods, back to China. railway works better than the others, since it brings more goods, especially high value added goods, back to as Madrid and Berlin. All of these railways pass through Xinjiang province. Up to now, there are six of thinks that the Yu-xin-ou railways, Han-xin-ou, and Yu-xin-ou. The author Yi-xin-ou, Rong ou, Shaan-xin-ou, Zheng-xin-ou, these kinds of The X-Xin-Ou trans-continental railway The X-Xin-Ou trans-continental refers to several railways from Chinese mainland cities, to European cities such 2 and Road Initiative Existing opinions from foreign partners on the Belt partners foreign Existing opinions from between China and other countries, especially European countries. Lastly,countries. European especially countries, other and China between behind the perceptions of China and itsthe author points out the paradoxes partners on the Belt and Road Initiative. view of European countries. Most of the data is collected from the records ofrecords the from collected is data the of Most countries. European of view private interviews, and a part of the datathe author during conferences and will point out the different ways of thinkingis from public papers. The author them. Accordingly, this article tries to summarize the characteristics of foreignof characteristics the to summarize article tries this Accordingly, them. Road Initiative, mainly from the points ofperceptions towards the Belt and that China still has not grasped the way in which other countries are thinking.that China still has not grasped the wordssame the repeating by machine propaganda a as working just is China problems without deeply understandingeverywhere. They are coping with Chinese government and elites from different areas did a lot of work to createChinese government and elites from exchange. However, the author thinksopportunities for communication and quick development of its economy in recent years, many world elites hold the years, many world elites hold of its economy in recent development quick thebuy will it that or order, world current the to threat a is China that view to this situation, the divide Europe and so on. Responding world, conquer and Thailand and other related countries have achieved deep cooperation on related countries have achieved Thailand and other high-speed rail. These big projects have drawn the world’s attention to China theand China of size big the Considering Initiative. Road and Belt its and to shorten transportation times, together with the China-Europe Land and Sea times, together with the China-Europe to shorten transportation In Asia, China, Indonesia, Macedonia, Serbia and Hungary. Express line through partners have achieved many projects, for example, X-Xin-Ou trans-continental X-Xin-Ou example, for projects, many achieved have partners and Asia between goods of transportation the to important are which railways, Europe. Since Since the Chinese President, Xi Jinping, first announced the Beltitsand China initiative, this Under years. 5 almost for developed has it Initiative, and Road Belt and Road Initiative, China, Europe, perception, paradox perception, Europe, China, Road Initiative, Belt and
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4 Foreign countries urge China China Foreign countries urge 3 Interview with official from the Polish Embassy in Beijing, China. Date: 5 June 2015. from the Polish Embassy Interview with official Affairs. Date: 26 January 2016. from Chinese Ministry of Foreign Interview with official 3 4 local materials, hire local labour, and boost the local economy. What China is doing now is totally different. In their view, traditional need greenfield-investment, Engineering Procurement Construction need greenfield-investment, Engineering Procurement Construction use (EPC) or Public-Private-Partnerships (PPP) models, which can and 7 years have passed since then. On the issue of infrastructure, then. On the issue of infrastructure, and 7 years have passed since not also is which (BT), Build-Transfer is mode investment Chinese the they preferred by other countries. According to Chinese partners, needs. Nowadays, Chinese investment is merger and acquisition- needs. Nowadays, Chinese investment the only greenfield investment oriented. For example, in Hungary, This investment happened in 2009, is the Wanhua chemical group. the Chinese central or local government (Brockova and Gress 2016). (Brockova and Gress 2016). the Chinese central or local government investment cannot meet its partners’ Moreover, the form of Chinese property rights protection. Public procurement especially needs to to needs especially procurement Public rights protection. property For foreign countries, the best way be open to foreign companies. protection agreement with to achieve this is to sign an investment markets are more open than before. markets are more open than access and improve intellectual to reduce the limitations to market another country to China. On the other hand, when these countries the other hand, when these countries another country to China. On to due effectively, so do cannot they market, Chinese the enter China, despite the fact that Chinese the complicated situation in industries and enlarge the market for its products through a great through a great the market for its products industries and enlarge under the name of the Belt and number of mergers and acquisitions, easily open the internal market of Road Initiative. This process can from the financial crisis and/or with the refugee crisis, which leads crisis, which leads crisis and/or with the refugee from the financial its upgrade to needs China economy. their of recovery slow the to The imparity of the Belt and Road Initiative is the “inequality” in the the “inequality” in the the Belt and Road Initiative is The imparity of “inequality” the is, that partners, its and China between relationships countries still suffer According to this opinion, many of the market. One “inequality” its partners China and between on the goal of the Belt and Road Initiative and the ways to implement it. and the ways Road Initiative of the Belt and on the goal Initiative. The author organizes these into: one “inequality” “inequality” one into: these between organizes author The Initiative. ways to achieve; two China wants goals that three its Partners; China and stability. create domestic China wants to in which focus These opinions This section summarizes the main foreign opinions on the Belt and Road Belt and on the opinions main foreign the summarizes section This Secondly, China seeks support, or less interference, on sensitive issues. To on less interference, or support, seeks China Secondly, countries, especially from the European Union. The EU’s recognition of EU’s recognition The Union. European the especially from countries, China’s place in the international economic order is quite essential. other hand, China has established Asian other the New Development Bank and Investment Bank (AIIB), which are parallel Infrastructure and compatible with these financial institutions. Such a goal needs the support from other demonstrate its ability. On the one hand, China gets a more important hand, China gets a more its ability. demonstrate On the one the On Bank. World the or (IMF) Fund Monetary International the place in Firstly, through the Belt and Road Initiative China seeks legitimacy in the Firstly, through the international economic and financialand management in global economic place its own enhance to order. China always aims are three kind of goals that China aims to achieve: are three kind of goals that China Initiative, especially with Germany and Russia. maintain If these countries cooperation with China, then China will avoid many difficulties during its development (Weissmann under this perception, there 2015). Concretely, Nowadays, China promotes relations both eastward and westward. and eastward both relations promotes China Nowadays, with the USA; Westward, China Eastward, China promotes relations the Belt and Road enhances cooperation with Eurasian through countries reconstruction of world order. It is also a strengthening and active signal a strengthening is also It order. world of reconstruction environment. stable international a create to order policy in Xi’s foreign of The three goals that China wants to achieve are widely considered as achieve are wants to goals that China three The holds Road Initiative. This perception the direct goals of the Belt and Road Initiative will the view that the Chinese Belt and directly serve the Three that goals to achieve wants China initiated the Belt and Road project. initiated the Belt tighten the openness of its own market to foreigners, especially in the especially foreigners, to market its own of openness the tighten opinion, this of those For communication. or construction finance, of areas it when with others sincerely cooperate to want not it means China does These phenomena cause the impression that China wants to use the use China wants to that impression cause the phenomena These Road Initiative Belt and openness of others’ and enlarge the to maintain or close time, same the at but products, and its investment to markets owner will face more risk. risk. more will face owner BT investment can maybe improve local infrastructure, but the future the future but local infrastructure, improve can maybe BT investment
XXIII (78) - 2017 Vol.XVIII, No. 66 - 2012 152 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 153 5 from Corvinus University, Hungary, the votes in the European Parliament from CEE countries a lot, from Corvinus University, Hungary, the votes in the European Parliament from CEE countries have not changed which needs to be studied further. This view is shared by many scholars and officials from CEE countries. However, according to the study of a scholar 5 development, environmental pollution and so on, which makes structural pollution and so on, which development, environmental have large debts, and enterprises private Besides that, harder. reform history, China depended a lot on export and low-wage labor, which is export a lot on China depended history, growth unsustainable economic trends. The high-speed under current between urban and rural a gap about corruption, of GDP brought faced in recent years is the structural reform of its economic model, from of its economic reform structural faced in recent years is the its economic Earlier in consumption. domestic to export, and investment Domestic stabilization is the final goalInitiative, biggest challenge China has shared by most Chinese elites. The of the Chinese Belt and Road Two ways in which to create ways China wants domestic stability Two tools and form a lobby inside the EU. This is the political a lobby support that China tools and form Road initiative. plans to gain through the Belt and objectives of the Belt and Road in the West. Many elites who share this status of market economy admit the EU does not the after that view think its diplomatic broaden to way as a CEE countries will take China China, cooperation. The 16+1 is a focus of Chinese foreign policy towards EU. policy towards foreign Chinese of 16+1 is a focus The cooperation. The motive behind 16+1 to use trade and investment is that China plans serve the to and agriculture, energy in areas such as infrastructure, Thirdly, China uses multilateral cooperation to gain political support gain to cooperation uses multilateral China Thirdly, been actively in the EU. Up to now, China has pushing for multilateral altered due to this reason. Under the Belt and Road Initiative, pragmatic Belt and Road the Under reason. altered due to this more vital. cooperation becomes of human rights in China, or other sensitive issues. For example, the Czech example, issues. For sensitive China, or other of human rights in Republic’s official attitude towards China and cooperation16+1 has Europe, to attract Chinese investment. They are worried that China will that worried are They Chinese investment. attract to Europe, many attention, Chinese for Due to this competition invest in its neighbors. issue the overlook to others leverage to China will use this chance that think well illustrated in the Central and Eastern Europe (CEE) region. Every CEE Every CEE Europe (CEE) and Eastern in the Central well illustrated region. Northern or Europe Western to gateway itself as the describes country than a multilateral one. They think that, through bilateral negotiation, negotiation, bilateral through that, think They one. a multilateral than the same while at one country dependency on decrease its China could is This phenomenon policy. foreign in China’s importantce time, gain many partners, a bilateral relationship with China is much more important important more much China is with relationship a bilateral partners, many However, the pessimists 6 Interview with a scholar from the University of Ljubljana, Slovenia. Date: 12 August 2016. Interview with a scholar from the University 6 provinces to the central government. Local governments try every means toprovinces to the central government. Local governments try every means to reputation, their boost and Initiative Road and Belt the in role their define get more attention from the central government. production cooperation plan, the Chinese government is also the mainthe also is government Chinese the plan, cooperation production link thestimulator. Domestically, China uses the Belt and Road Initiative to repeatedly stresses its decisive role, rather than basic role, which meanswhich role, basic than rather role, decisive its stresses repeatedly Like in Chinese investment in othergovernment intervention will continue. capacitycountries, state-owned companies play a central role. Under the the Belt and Road Initiative to enhance the government’s effect on thethe Belt and Road Initiative to enhance Some say the Chinese governmenteconomy and capacity production. The second way China might achieve domestic stability is through theThe second way China might achieve usesChina life. daily of aspects many in role strong government’s Chinese from Central Asia constantly support separatists in Xinjiang, so nationalism so Xinjiang, in separatists support constantly Asia Central from to achieve a goal (Sørensen 2015). is a very dangerous tool with which throat of the Belt and Road Initiative is Xinjiang province, where conflicts will of nationalism are serious and it to eliminate them only by be hard Islamic groups some Chinese neighbors, Regarding growth. economic others think that nationalistic sentiment is the Sword of Damocles. China Sword is the that nationalistic sentiment think others should cautiously balance, because if nationalistic is sentiment stimulated minorities. The and its own its neighbors it will affect then much, too will stimulate nationalistic sentiment, which makes Chinese people focus which makes will stimulate nationalistic sentiment, However, profit. short-term than rather goals, strategic long-term, on more very helpful in uniting the Chinese people suffering a depressed economy. the Chinese people suffering very helpful in uniting great shows which China, investment-oriented strong, build a can It of the nation This impression parks, etc. industrial in infrastructure, interest One is nationalistic sentiment. China proposed the Belt and Road Initiative Initiative Road Belt and the proposed China nationalistic sentiment. is One to fulfill the need of Chinese people’s nationalistic sentiments, which is foreign policy are domestic problems. There are two ways to create to ways two are There problems. domestic are policy foreign domestic stabilization. on these factors, the Chinese Belt and Road Initiative serves the goal goal serves the Initiative Road Belt and Chinese the factors, these on domestic stability. of achieving of Chinese Elites that the root consider that the Chinese welfare system is not effective and consistent enough enough consistent and effective is not system welfare Chinese the that are the level. These local the especially on reform, structural support to Based in China. domestic stabilization which affect factors negative banks try to hide large-scale bad debts (Rudzki 2016). Another factor is is factor Another 2016). (Rudzki debts bad large-scale hide to try banks
XXIII (78) - 2017 Vol.XVIII, No. 66 - 2012 154 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 155 an extent, a historical coincidence. From this point of view, China did not From a historical coincidence. an extent, “invade” or “buy” Europe. China is just acting according to the current situation and is taking advantage of historical opportunities. tech enterprises, mainly in Europe and the USA, are suffering from a break from suffering are USA, and the mainly in Europe enterprises, tech of the capital chain, and at the same time Chinese enterprises are waiting to upgrade themselves, with a lot of money seeking investment. This is, to real structural problems are unsolved. It is an urgent task for China, and task for It is an urgent real structural problems are unsolved. its biggest need. On the other hand, since the global financial crisis high- For China, on one hand, its industries face the problems of overcapacity problems of the its industries face hand, one on China, For Although the Chinese economy. and low added-value, which hinders Chinese GDP is now increasing slowly, according to official data, these sides. The “inequality” of the market is the first thing that the two sides understand sides two the that thing first the is market the of “inequality” The at every occasion about the Belt and differently, and it is often mentioned two the of and condition need different in the it is rooted However, Road. The difference in the condition of the sides overall two The root of the perceptions of China and its partners its partners of China and of the perceptions The root the Belt and Road Initiative towards conferences, seminars, and interviews with some government officials or scholars. Chinese domestic market, its economic situation, its domestic stabilization its situation, its economic market, Chinese domestic the above views ambition in the world. Additionally, and China’s political are not just limited to the quoted materials, they always occur during In short, foreign opinions on the the initiative limited to on the speculation to include itself, but broadened Belt and Road Initiative are not just innovation and the market economy. For foreign investors, it is an uncertain it is investors, For foreign economy. the market and innovation of the Chinese economy. the direction which to predict signal with hold hold that the efficiency of intervention is low, which sets back economic by the former Soviet Union style people by Soviet Union economy. In this part of China the former era. Consumers there are also very open to new products. Contrary to Contrary products. new to open also very are Consumers there era. still are they since closed is more China of part north-eastern the that, influenced deeply was which industries, their of overcapacity from suffering regulated and policies are more transparent, since this part of China was and Open” “Reform the during Chinese private economy the pilot for the is improving its market environment and foreign partners cannot take cannot partners and foreign environment is improving its market the China, of part southern In the market. China as a mono-natured is more market open. The is more the government and trade environment or regulated as the European one, and the supervision of the quotas one, as the European or regulated China However, is strict and time-consuming. agricultural products on market and lack of related regulation. Or they urge China to increase its China to Or they urge regulation. and lack of related market they main complaints when the are These imports. for agricultural quota transparent so not is market Chinese the that It is true China. to come Foreign partners all seek protection of knowledge, know-how, technology, know-how, of knowledge, all seek protection partners Foreign due to its complicated government, and investment from the Chinese one big leap, which means China does not need to go step by step, and by step, step go to need not does means China which leap, big one through mergers and acquisitions. can just go directly from 2.0 to 4.0 the method of investment is not the real concern for European and other European for the real concern is not of investment the method by industrial upgrade is a Chinese concern is of what Rather, partners. field of business. The USA also invested a lot and bought a lot of European European of lot a bought and lot a invested also USA The business. of field companies during the financial crisis (EY report 2015). It seems that it did that thinks as China did. In fact, the author catch as much attention not risk is the common concern of companies worldwide. So we can see that of companies worldwide. risk is the common concern other of needs the from different is not upgrade to need Chinese the in the is also common its way of seeking opportunities companies, and find low-cost labor. So for the Chinese side, they will face more risk. Under Under risk. more face will they side, Chinese the for So labor. low-cost find avoid To safest way. are also the and acquisitions this situation, mergers foreign enterprises face in China, especially regarding the process of China, especially the face in regarding enterprises foreign This is unlike big industrial chain. the of section upper to the investment western groups, who just invest in the lower part of the industrial chain, to except for some certain areas which involve national security. Besides, security. involve national which areas certain some for except Chinese enterprises will face unfamiliar regulations and markets just as skills added-value higher produce and as possible. as soon products fastest way to the acquisitions are and speaking, mergers generally So, world, the all over and lawful way is a reasonable which this goal, achieve As for the method of investment, Chinese sides sides Chinese investment, of the method As for technological to learn need
XXIII (78) - 2017 Vol.XVIII, No. 66 - 2012 156 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 157 EU’s border. China is in the first place. Any strategic partnership, especially partnership, strategic Any place. first the in is China border. EU’s said in a public speech in China: “Although [the] EU’s Foreign and Security EU’s Foreign [the] “Although said in a public speech in China: geopolitical issues, neighbors’ the to attention Policy really pays a lot of beyond the build strategic partnership with countries [the] EU needs to to not only be the motor of the world economy, but also an active actor in but also an active actor world economy, of the motor only be the not to Waszczykowski Minister Witold global geopolitical crises. Like Polish Foreign the current world order and definitely will change it. This logic,great expectations of or concerns two their expresses Eurasian countries, to most influence, global with power great a as China, expect they Firstly, powers. serve the reconstruction of world order and the creation of a stable a of creation the and order world of reconstruction the serve China is that logic Their and multi-polar world. environment international China is capable therefore of changing must be a great power now, and powers. They consider China as a global and regional great power. This is powers. They consider China as regional a global and Initiative will directly Road Belt and Chinese the view that the of root the The second feature of foreign opinion are the perceptions of the great the of perceptions the are opinion foreign of feature second The of the market, and some misunderstanding about Chinese market. of the market, and some misunderstanding The perceptions of great powers always complain about a trade deficit with China. So it is “inequality” causes the that China and its partners internal conditions of the different cannot enter the Chinese market, not because of quality, but because quality, but because because of not market, Chinese the enter cannot the interest of the Ministry and State of quantity, which does not arouse countries This is why Poland and other Quality Inspection Administration. willing to go through complicated and time-consuming procedures for a for procedures time-consuming complicated and through go willing to in Central is more common This phenomenon small quantity of products. CEE the from products agricultural Many high-quality Europe. and Eastern The Chinese population is large, and a small amount of product cannot product of small amount a and is large, population Chinese The and the administration is not of market promotion, even meet the needs because the paperwork and bureaucracy in these bodies and bureaucracy in these because the paperwork complicated is the small of Partly, this is because of and time-consuming. amount market. Chinese the that enter countries foreign from agricultural products partners imagine it. As for the agricultural quotas, this is hard to get from get to is hard this quotas, agricultural the for As it. imagine partners Quality and State the Ministry this is Partly, Administration. Inspection western part of China is of China part western of the the support with very fast now developing the So Road. and Belt the of part important it is an since government, foreign as in total chaos not and divergent, and is large market Chinese and government are more closed, even to the Chinese themselves. The themselves. Chinese the to even closed, are more government and In fact, other In fact, 7 This is how Eurasian countries Eurasian countries This is how 8 Meeting during the author’s visit to Serbia. Date:18 June 2016. author’s visit to Serbia. Meeting during the Meeting during the author’s visit to Serbia. Date:18 June 2016. author’s visit to Serbia. Meeting during the 7 8 weakness, so it will not put a global rise in the world as a priority, it just seeks just it priority, a as world the in rise global a put not will it so weakness, New of view, the this point a reasonable place in today’s world. From above, China’s final goal its well, and knows itself domestic problems, which means China knows of the Belt and Road Initiative is to solve rise of China is different from the time of the USA’s rise, or Germany’s rise. USA’s rise, or the time of the from China is different rise of peacefully, which it should rise essential principle is that the China, for So As mentioned countries. problems with other cause means it should not China is indeed rising in the world, which will draw global attention. But global attention. will draw which world, the in rising is indeed China due to many structural problems. The at the same time, China is weak these goals are just in the imagination of China’s foreign partners. They for today’s China. are neither realistic, nor appropriate them, China’s goal is legitimacy in the international economic order, and in the international economic order, them, China’s goal is legitimacy However, EU. the sensitive issues, from on less interference or support, the think of great powers. In their eyes, China is a new great power on the on eyes, China is a new great power In their powers. think of great society. international of support the get to tools use will definitely and rise, The Belt and Road Initiative China chooses to utilize. To is the tool that sanction to Russia. All of these harm Serbian interest and all of these are these all of and interest Serbian these harm Russia. All of to sanction the results of big powers’ influence” [sic]. society and governments. One of the Assistants of the Serbian Foreign Assistants of the Serbian Foreign One of the society and governments. Minister once said is by [the] EU and during a meeting, “Serbia surrounded Europe and Baltic for pushed Northern countries Germany also NATO. recognition or other tools. This kind of influence can even arouse serious Islamic countries, groups European in South-Eastern security issues, like both for concern a great are another, or power great by some supported good connotation. Great powers will power to penetrate into use their soft good connotation. local politics through NGO training, government official training, religious with Russia or the USA. In their history, they are deeply influenced by these by influenced deeply are they history, their In USA. the or Russia with traditional great powers. Even today, this influence has not stopped. So a have not does power” “great phrase the countries, these eyes of the in Syrian crises, there are always voices urging China to choose a side to stand stand to a side choose China to urging are always voices there Syrian crises, compared are small countries, countries most Eurasian with. Secondly, [the] Chinese Belt and Road Initiative should go beyond the connectivity connectivity the go beyond should Initiative Road Belt and Chinese [the] [sic] 2016). (Waszczykowski Eurasian countries” between view share the same countries as and In the Ukrainian the Polish minister’s. EU-China partnership, should not be limited to economic cooperation. cooperation. to economic be limited not should partnership, EU-China
XXIII (78) - 2017 Vol.XVIII, No. 66 - 2012 158 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 159 goal. Germany before Germany goal. political trends or systems of its partners, and China does not want to do want to and China does not systems of its partners, or political trends come true and tries to stay far away from the politics of its foreign partners, its foreign politics of the away from stay far to tries and true come now. doing is China what is This cooperation. pragmatic on focus just and change funds cannot or investments that understands Besides, China would be a really serious problem as China would no longer be able to be longer no would as China problem a really serious be would implement the Belt and Road Initiative. So, China does not want this to what will happen? What would Germany, France or other countries think countries other or France would Germany, What what will happen? would action Chinese the issues, involved in these gets China If China? of That away and block Turkey. drive Russia further be considered a way to will happen? If China begins to affect South-Eastern European politics, politics, European South-Eastern affect to begins China If will happen? increasing, is Turkey’s and decreasing is influence Russian when particularly problems in the world. Because China does have the ability problems in the world. Because to affect a in the if China still actively participates conditions, these Under country. stand with, what a side to Syria crisis, and chooses the crisis, or Ukraine But the facts are not like this. China knows exactly the logic behind this But the facts are not like this. China tries not to get involved opinion, and to the greatest extent in security must be backed by great power. This great power will then change into a into change willthen power great This power. by great backed be must Germany in history. political and economic threat, like time, Germany would develop hegemonic ambitions and become a hegemonic time, Germany would develop that threat in advance. Now, China is threat. They had to defend against Europe, to which world, the all over investment and spreading its culture which caused other countries to form an alliance to form to balance against it. countries which caused other or some unpredictable in the future This is because they believed that country’s rise will also cause the same thing. To these countries, power is an these countries, To country’s rise will the same thing. also cause of kind what with matter no fact, unchangeable and Africa, Europe active in was very and lot a invested One War World Germany and France have been balancing each other for centuries, any any centuries, for each other have been balancing Germany and France other suspicious. Any be to country third the caused two alliance between What is more important is that in fact China is very cautious to avoid to cautious is very China fact in that is important is more What Britain, Europe, history of In the thinking. ways of Western of effects the conditions. Such conditions are things China does not want to be get want does not are things China Such conditions conditions. with. involved existing financial institutes. These two new institutes cannot be compared compared be cannot institutes new two These institutes. financial existing goals, with many designed are latter Bank, since the World IMF, or with the not just investment, and their funds are linked with many political reform Development Development Bank and AIIB are designed to fill the investment gapsof between China, Russia and its neighbours is the the is neighbours its and Russia China, between heterogeneity enhanced, which means it needs more capital and stronger domestic enhanced, which means it needs more capital and stronger domestic reform lowers the ability to invest. This puts the prospect of the Belt and Belt and reform lowers the ability to invest. This puts the prospect of the Road Initiative less likely than before. After publishing the thirteenth five-year plan, China stated clearly that investment will further be Chinese national ability and sustainability. They think that China needs needs Chinese national ability and sustainability. They think that China its domestic economy to support the go-out strategy, but inefficient the southern and eastern China Sea; on land, there are the Tibet and Sea; on land, there are the Tibet and the southern and eastern China Xinjiang separatists, and so on. These factors make people turn their of are suspicious they Now problems. Chinese domestic to attention biggest problem in cross-border cooperation. But now, they have cooperation. But now, they have biggest problem in cross-border challenges derive from China itself. started to realize that the real on the sea there are the disputes of China is surrounded with problems: the Belt and Road, such as the Central Asian countries or Russia. They Central Asian countries or Russia. They the the Belt and Road, such as said of this point is different. To foreign partners, this is a relatively new new relatively a is this partners, foreign To different. is point this of all almost Road Initiative, the Belt and of days the early perception. In challenges of a certain country along of them concentrated on the A popular Chinese political phrase is that we should combine two is that we should combine two A popular Chinese political phrase However, the perception policies, the domestic and international. needs and foreign policy. In fact, this can hardly be considered as this can hardly be considered as needs and foreign policy. In fact, China and its partners, since foreign a different perception between as the point of Chinese foreign policy. partners exactly understand this The third feature of foreign opinion is the combination of domestic is the combination of domestic The third feature of foreign opinion concepts upon Chinese behaviour. concepts upon Chinese of domesticThe combination and foreign needs policy EU. Moreover, a lobby is a typical Western political tool. China prefers China tool. political Western typical lobby is a a Moreover, EU. to exchange on the official level. Western countries still place their own Chinese partners have their own opinions on these issues. have their own opinions on these Chinese partners does not China be used as a cannot countries In this sense, CEE them. intend to change a lobby inside the form to China’s diplomatic options, way to broaden Chinese investment cannot change its partners’ attitudes towards some towards attitudes its partners’ change cannot investment Chinese sensitive issues, like Tibet, Xinjiang or the South and Eastern China Sea. domestic political political domestic countries two These and Poland. Hungary in situation are still enjoying the EU’s funds, but the funds cannot change Mr. Viktor China. goes for same thing The attitude. Lech Kaczynski’s and Mr. Orban’s either. The EU must understand well the Chinese position considering the the considering position Chinese well the understand EU must The either.
XXIII (78) - 2017 Vol.XVIII, No. 66 - 2012 160 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 161 on tax-cuts, education priority and so on. The life of minorities really really minorities of life The on. so and priority education tax-cuts, on China as a whole, or the Chinese people. There are 55 minorities and and China as a whole, or the Chinese people. There are 55 minorities the Han nation in China, which is really rather complex when compared focuses with other countries. The central government’s minority policy other religions or other nations cause the problem, like Muslim refugees other religions or other nations cause the problem, like Muslim refugees mean they nationalism, about talk Chinese when But people. Roma or most important thing is that Chinese nationalism is not the “nationalism” “nationalism” the not is nationalism Chinese that is thing important most and nation majority the about not is It language. western by described minority communities; it is about China itself. In the western description, government’s large role are very helpful and not more dangerous than helpful and not more dangerous than government’s large role are very The imagined. have people as region, other any or Europe in those Secondly, to unite the Chinese people and government, to implement people and government, to implement Secondly, to unite the Chinese sentiment and the Chinese the Belt and Road Initiative, nationalistic domestic economy, it is the tool with which to reform the domestic with which to reform the domestic domestic economy, it is the tool economy. concentrating government and non-government resources. Although resources. Although non-government and concentrating government it suffers from its economic situation Road Initiative is not backed by the worthwhile. Hence, the Belt and now, for long-term profit, it is time, during the so-called fourth industrial revolution. Reform of the the revolution. Reform of industrial time, during the so-called fourth management experience, so China economy needs technology and to implement this initiative, by will unite the whole country’s strength other countries. China is not just an investor to pour out money, but also also but money, out pour to investor an just not is China countries. other experience at the same plans to learn high-tech and management and the strength of the Chinese government’s role are still useful useful still are role government’s Chinese the of strength the and Initiative to upgrade its initiated the Belt and Road tools. Firstly, China moving from China to context of the ‘world’s factory’ industry, in the domestic consumption. But these cannot bring about negative effects effects negative about bring cannot these But consumption. domestic nationalistic sentiment Road Initiative. What is more, on the Belt and the final goal of the Belt and Road Initiative, as propounded by most is indeed the China faces challenge The biggest of the Chinese elites. to export, and investment from model economic its of reform structural As for China, it is a totally different picture. Domestic stabilization is indeed indeed is stabilization Domestic picture. different totally a is it China, for As foreign partners think that nationalistic sentiment and the Chinese the Chinese and sentiment nationalistic that think partners foreign gain to tools ineffective or dangerous very are role large government’s stabilization. domestic manufacturing ability. It makes the situation worse. That is why many why many That is worse. situation the It makes ability. manufacturing it is a highly efficient actor. Take the process of railway construction, for for construction, railway of process the Take actor. efficient highly a is it The role of the government is also another guarantee for the for the The role of the government is also another guarantee phenomenon, foreign implementation of the Belt and Road Initiative. Contrary to low-efficiency a as government the of role the on opinions China learn high-tech and management skills from the outside? that time, foreign partners will criticize the Chinese side as an unreliable the Chinese side as an unreliable that time, foreign partners will criticize companies) would always want partner, because the Chinese (private to find the most profitable projects. With these criticisms, how could actors of the Belt and Road Initiative are private companies, then this are private companies, then this actors of the Belt and Road Initiative so fast and broadly. Or maybe, at initiative cannot be implemented had contact for centuries. That is the biggest weakness of Chinese Chinese of weakness biggest the is That centuries. for contact had it think will companies private circumstances, these Under investment. before investing. If the main Chinese over and over again to avoid risks a German company to invest in Hungary, because they are both EU in Hungary, because they are both EU a German company to invest with each other’s laws and have Member States, they are familiar companies, especially under the current situation, they can hardly the current situation, they can hardly companies, especially under with foreign laws, environments, take risks, and they are not familiar for easy is it where Europe, with situation that Compare markets. and or state-owned companies to get involved. Only these actors can get involved. Only these actors can or state-owned companies to focus on long-term profit, and are capable of handling a long capital country is a risk. For Chinese private chain. Besides, investing in another oriented project like food trade. So, we cannot expect many private government for is way only the this, like projects in invest to companies projects, since China has much more experience in this area. It is hard initial large to due term short the in projects of kinds these from profit to market- pure a than rather project, welfare social a like more is It costs. Belt and Road Initiative cannot be implemented smoothly. As we all smoothly. As we all Initiative cannot be implemented Belt and Road Initiative is infrastructure feature of the Belt and Road know, the main As for the Chinese government’s role, the author thinks that it is very thinks that it is very government’s role, the author As for the Chinese Road Initiative. The implementation of the Belt and helpful to the author even judges that without the strong role of government, the of discrimination. of discrimination. China, and also shows an inclusive attitude towards minorities. So So minorities. towards attitude an inclusive shows also and China, rare in China. nationalisms is western-style or other discrimination, are some cases indeed there deny that the author cannot However, changed a lot since 1949. The Han nation as the biggest nation in in nation biggest as the nation The Han 1949. lot since a changed
XXIII (78) - 2017 Vol.XVIII, No. 66 - 2012 162 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 163 Chinese domestic situation, and Chinese methods of implementation Chinese domestic situation, and Chinese methods of implementation different perceptions. The influence of great powers makes Chinese partners skeptical of its ‘real’ goal in this initiative. The transformation to the experiences of western-style economies makes them pessimistic experiences of history, development, transition and other things, color color experiences of history, development, transition and other things, their derive which from Initiative, Road and Belt the of judgement their All in all, we can see from the above analysis that the difference above analysis that the difference All in all, we can see from the and its partners towards the Belt between the perceptions of China different and Road Initiative is based on their own experiences. Their its foreign policy, while this situation is different in foreign countries. its foreign policy, while this situation its partners have different understandings of this point. According to to According point. this of understandings different have partners its the tools of nationalist sentiment and Chinese economic conditions, tools which can help China to carry out central government are useful foreign policy is a common opinion about the Belt and Road Initiative. about the Belt and Road Initiative. foreign policy is a common opinion economic conditions, China and However, due to differing national delay, which is the basic pillar of mutual trust. delay, which is the basic pillar of and needs domestic of combination a that see can we above, the From partners and uses its experience in cooperation with other countries. It in cooperation with other countries. It partners and uses its experience and hesitation without out carried be can projects that sure make can change this situation, but either because of cost, or because of co- of because or cost, of because either but situation, this change ordination between countries, many projects have just failed. government shares its experience to its this point of view, the Chinese From illustrated by many cases in Central and Eastern Europe. More than Europe. More than cases in Central and Eastern illustrated by many this region has still not since, but connectivity in 20 years have passed improved by much. Every country has a large number of projects to twice and the EU changed its commissioner for transportation, who for transportation, who EU changed its commissioner twice and the moved this project from the top of the agenda. This can also be well project is slow in foreign countries. Take the Baltic railway for example, example, for railway Baltic the Take countries. foreign in slow is project this line was firstly proposed veryearly on to the EU, butwork on the transition stations even started. Lithuania changed railway has not of the railway is finished, all they need is a connection, the whole thing thing whole the connection, a is need they all finished, is railway the of of kind this China, with Compared year. one around in done be could two long-distance cities, which passes through several provinces, then then provinces, several through passes which cities, long-distance two and provinces these of heads the gather will government central section a When these provinces. to tasks assign then plan, a formulate example. In China, if the government plans to build a railway between between railway a build to plans government the if China, In example. China will subsidize imports from Poland, the trade deficit will improve, but improve, will deficit trade the Poland, from imports subsidize will China China will has said be faced with more critics. Secondly, the author in the and that the Chinese economy is not open enough. But it seems that on is not open enough. and that the Chinese economy the issue of trade deficit, they never realize what the market needs. If fact is that the Chinese market needs less Polish products. The famous European EU and some The people. Chinese tasty for Polish apple is not in China proper status is not economy market always stress the countries that there has been no more greenfield-investment since 2009. However, trade big a has Poland market. the of needs the by decided is trade firstly, deficit with China, which means Polish products export less to China. The way of investment and trade, as mentioned above. For example, in the way of investment and trade, as complains Hungary deficit, trade the about complains Poland region, CEE The first paradox is about market need, trade Chinese the about concern always express countries Many western modes. volumeand investment obstacles for mutual understanding, which the author has shown in the mutual understanding, obstacles for above sections. to people exchange. However, the author takes people to people people to people takes author the However, exchange. people to exchange as the first priority.When we really see things fromof the point view of others, we can find that there are some paradoxes as hard of connectivity as goals, that is: part of the Belt and Road’s trade links; capital flows; infrastructural investment; policy coordination; and people different perceptions of China and its partners. As you can see from the see from As you can partners. perceptions of China and its different the two sides understand each above, the main reason is that cannot other well enough. That is also why the Chinese side proposed five kinds In this article, the author tried to explain the reasons and logic behind the logic behind and reasons explain the tried to author the article, this In Conclusion and makes the meaning of this initiative more opaque. This makes the This makes the more opaque. of this initiative the meaning and makes worse. situation factor is that although many Chinese elites do propagandize the Belt Belt the do propagandize elites Chinese many although is that factor initiative is not”, on “what this always focus Initiative, they and Road more confused, makes people initiative is”. It “what this rather than of this initiative. All of these factors cause different perceptions. Another Another perceptions. different cause these factors All of initiative. of this
XXIII (78) - 2017 Vol.XVIII, No. 66 - 2012 164 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 165 make Western countries think that the Chinese way of cooperation is hard make Western countries think that the Chinese way of cooperation even a signal to businesses and an opportunity for cultural exchange. This is exchange. cultural even a signal to businesses for and an opportunity way is totally But the western to China. countries the impression of western different, where the influence of government is less. All of these factors owned companies and its policies drive people. In China, a high-level official visit is the most important thing that canhappen to a region. It is The third paradox is about efficiency and the Chinese way of cooperation. of way Chinese the and efficiency about is paradox third The drives state- government The way is government-oriented. Chinese The international society will definitely perceive this choice as a manifestation manifestation a as choice this perceive definitely will society international geopolitical ambition. of ideologically charged Chinese ideology and government policy, including in the Belt and Road Initiative, ideology and government in part take to China chose if paradox, is the Here and 16+1 cooperation. the EU, Russia, the USA or the Ukraine crisis, or the Syria crisis, and condemn by China as ideological ones, and their conclusion therefore is by China as conclusion therefore that ideological ones, and their split Chinese cannot They geopolitical ambition. Chinese growing of of its agenda to make its partners not focus on ideological topics. China not of its agenda to make its partners to ensure the development of wishes to make a pragmatic environment perceive all moves they partners, Chinese But for itself and its partners. with the European parliament. China has realized that avoiding the use avoiding the China has realized that with the European parliament. as possible society of ideological words as much in the international top the on cooperation pragmatic also puts issue. China alleviates this with EU and European countries, the issue of ideological difference is difference ideological issue of the countries, European and EU with always the first thing, like the cooperation with the Republic, Czech or neutral position, which makes many countries unsatisfied. They consider this is that as a for deeper reason action by China. The it an irresponsible cooperation the In is important. choice China’s ideological body, different power in the world, a status which requires China to take a role in some in role a take to China requires status which a world, the in power issues of global conflict.For example, in the Ukraine crisis, China chose a The second paradox is The second paradox These ideology and Chinese intentions. about take China as a big new Chinese partners are combined together. factors partners still criticize China. When China behaves in another way, they way, they in another China behaves When China. still criticize partners even worse. criticize acquisitions is much safer for Chinese to invest in. Besides, mergers and mergers Besides, invest in. to Chinese for safer is much acquisitions paradox first the So business. global in method reasonable a is acquisitions its norms, rules or international to behaves according China when is that second part of the paper that the mode of investment of mergers and mergers of investment of mode the that paper the of part second In the future, how the two sides perceive each other’s ways of thinking is the thinking ways of other’s sides perceive each two the how future, In the Road Initiative and 16+1 cooperation. biggest challenge on the Belt and these areas. That is why China intends to focus on pragmatic cooperation on focus is why China intends to areas. That these under the Belt and Road Initiative but its partners and 16+1 cooperation, pragmatic cooperation. to related issues not other Chinese on criticize the reform, and other related issues should be developed at the same time. and other related reform, in improvement about necessarily bring not does development Economic If people’s lives blooms, all improve and its economy problems will be or in the western way, economic solved. However, in European countries, development is just part of “development”. Human rights, democratic According to the author’s opinion, they are deeply rooted in the definition the in rooted deeply are they opinion, author’s the to According material the development, China, economic In of “development”. improvement of people’s lives is the first priority in “development”. These paradoxes are the problems which, it seems, cannot be solved. These paradoxes are the problems complain more about the Chinese side. This is complain more the role the third paradox, western in the cooperation of method the and government Chinese of imagination. Belt and Road Initiative and 16+1 cooperation will never come to fruition. will come to fruition. never and 16+1 cooperation Belt and Road Initiative Under such circumstances, efficiency is low and foreign partners will which concentrates on short-term profit, it can hardly invest in a power several big for except course, of on, so railway and highway, plant, the whole of the private companies, then If left to multinational groups. worry of Western countries but, at the same time, the biggest advantage advantage biggest the same time, the at but, countries Western of worry is private enterprise, body of cooperation with China. If the of cooperation and not driven by the market. However, as the author mentioned above, above, mentioned author the as However, market. the by not driven and Chinese government-led cooperation is highly efficient and short-term profit is not the main focus of this kindof cooperation. So, this is themain to accept, since big companies companies since big to accept, government by Chinese backed are
XXIII (78) - 2017 Vol.XVIII, No. 66 - 2012 166 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 167 . 3(1). [online] EY, [Accessed [Accessed . Sweden: SIPRI. Journal of East- Journal [online] 18 May. RP, [Accessed 25 June [Accessed , [pdf] 11 December. [pdf] 11 December. , , 24(5): 950–973. Protecting China’s Overseas Protecting The Possibilities of Further Promotion The Possibilities Further of [Accessed 23 June 2016]. . Hainan: Hainan Press. http://www.ey.com/gl/en/newsroom/news- . New York: Penguin. http://www.rp.pl/Finanse/305189950-Gora-zlych- European Planning Studies http://fas.org/sgp/crs/misc/RS21118.pdf , 19(1-2): 16-32. Diplomacy On China The Journal of China and International Relations, Congressional Research Service Research Congressional dlugow-w-Chinach.html Fa “Fen Hui” to Yang Guang “Tao From Policy: Foreign Chinese for You Wei”. Developments in the Baltic Sea Region until 2025. Region Developments in the Baltic Sea West Business Available at: Available at: 10 June 2016]. an indicator framework for assessing cohesion impacts of railway impacts of assessing cohesion for framework indicator an infrastructures. Issues. 27 May. Available at: releases/news-ey-western-europe-overtakes-china-and-north- america-as-number-1-investment-destination 2016]. Interests: The Slow Shift away from Non-interference Interests: The Slow investment destination with FDI projects at record high. of Cooperation of China and Slovakia of China of Cooperation ‘16+1’ within the Format Conference Paper. Sørensen, C. T. N., 2015. The Significance of Xi Jinping’s “Chinese Dream” Rudzki, P., 2016. Góra złych długów w Chinach. Kissinger, H., 2011. Ojala, L., Kersten, W. and Lorentz, H., 2013. Transport and Logistics Kissinger, H., 2012. Jackson, J. K., 2013. U.S. Direct Investment Abroad: Trends and Current Trends Direct Investment Abroad: 2013. U.S. J. K., Jackson, González-González, E. and Nogués, S., 2016. Regional polycentricity: and Nogués, E. González-González, EY, 2015. Western Europe overtakes China and North America as #1 EY, 2015. overtakes China and North Western Europe Duchâtel, M., Bräuner, O. and Hang, Z., 2014. Z., Hang, O. and M., Bräuner, Duchâtel, Brockova, K. and Gress, M., 2016. K. and Gress, Brockova, Bibliography The Stockholm: 7(2): 153–84. ) is Assistant Professor at the at the ) is Assistant Professor e Foreign Policy in a Global Perspective: A in a Global Perspective: Policy e Foreign The evolution of Višegrad Group and China-V4 China-V4 and Group Višegrad of evolution The Beijing: China Social Sciences Press. Sciences Social China Beijing: [email protected] ( - A Study on cooperation, competition and distrust. competition - A Study on cooperation, Research Agency. Swedish Defense of International Politics, Chinese Journal Sciences. 25 April 2016. Sciences. China and Russia “Striving For Achievement”, Responsible Reformer cooperation. cooperation. many research project funded by Chinese ministries and local and ministries Chinese by funded project research many was provincial He a visiting government. scholar in Slovenia and Hungary. He speaks Hungarian and English. areas include 16+1 cooperation, the Belt and Road Initiative, Road and Belt the 16+1 cooperation, include areas He has participated in economy. and transition CEE transition Sciences. He has been at CASS since 2014. He also works in also works 2014. He since CASS at has been He Sciences. in Budapest, Hungary. researcher the China-CEE Institute as His field of expertise focuses on countries. CEE His research Ma Junchi Social of Academy Chinese Studies, European of Institute Yan, X., 2014. From Keeping a Low Profile to Striving for Achievement. Weissmann, M., 2015. Weissmann, Chines Waszczykowski, W., 2016. The speech in Chinese Academy of Social of Academy in Chinese speech 2016. The W., Waszczykowski, Tianping, K., ed., 2015. 2015. ed., K., Tianping,
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SWOT analysis, Croatia, Chinese tourist source market, sustainable tourism, direct flight KEY WORDS: diversified and specialized tourist products, various marketing and promotional activities, simple simple activities, promotional and marketing various products, tourist specialized and diversified to further explore the Chinese and flexible visa policies and regulations, and other related measures tourist source market of Croatia. Based on first-hand research work, I make a SWOT analysis of the Chinese tourist source market Chinese tourist source market I make a SWOT analysis of the work, Based on first-hand research of Croatia and put forward related countermeasures from the perspective of a native Chinese. be ingeniously packaged. I recommend developing The positioning of tourism in Croatia should in Croatia. How can we bring more Chinese tourists to Croatia? How can we make them happy and tourists to Croatia? How can we make them happy and in Croatia. How can we bring more Chinese comfortable in Croatia? And, at the same time, how can we avoid polluting this tract of pure land? Croatia is a land endowed with rich and diversified natural and cultural tourist resources. Traveling Traveling resources. tourist cultural and natural diversified and rich with endowed land a is Croatia Chinese tourists there were few noticed that I However, its beauty. by stunned I was around Croatia, Abstract Wang Qian Wang Explore the Chinese Tourist Source Source Tourist the Chinese Explore Market Countermeasures for Croatia to for Croatia Countermeasures SWOT Analysis and Related Analysis and Related SWOT ISSN 1848-5782 1848-5782 ISSN UDC 379.8:910.4(497.5:510) DOI 10.1515/cirr-2017-0012 CIRR XXIII (78) 2017, 169-185 XXIII (78) CIRR figures and had kept for himself. It is a land endowed with rich and diversified natural diversified and rich with endowed land a is It himself. for kept had Legend has it that when giving out land God forgot about Croatians. He Croatians. about land God forgot giving out when has it that Legend he had to compensate them with the most beautiful land on Earth which Rich and diversified natural cultural and tourist resources of Croatia Tourist resourcesTourist Strength analysis Strength of the Chinese tourist source market of Croatia and put forward relatedof the Chinese tourist source market of a native Chinese. countermeasures from the perspective information and data online, went to the Croatian National Tourist Boardinformation and data online, went to get the statistics, and consulted academic experts, industry local residents. Based on first-hand researchwork, I make a SWOT analysis And, at the same time, how can we avoid polluting this tract of pure land?And, at the same time, how can about. I made a search for relevantThese questions are worth thinking tourists were European. Only a few were Asian, and they mostly came from Only a few were Asian, and tourists were European. How can we bring more Chinese touriststhe Republic of Korea and Japan. happy and comfortable in Croatia?to Croatia? How can we make them However, I noticed that there were few Chinese tourists in Croatia. Most that there were few Chinese However, I noticed other scenic spots in and around Zagreb. I also experienced the carnival Zagreb. I also experienced scenic spots in and around other in Rijeka. I was stunned by the beauty of Croatia. I was respected and and friendly Croats. trusted by the kind visiting Zadar, Šibenik, Skradin, Trogir, Split, Hvar, Korčula and Dubrovnik. I also have I Poreč. and Rovinj Pula, Opatija, visiting week, a for Istria toured been to Plitvička jezera, Varaždin, Karlovac, Slavonski Brod, Osijek and I worked in Zagreb, the capital of Croatia, for three years. During my stay, years. During for three of Croatia, in Zagreb, the capital I worked weeks, two for I travelled in Dalmatia Croatia. almost all around I walked Introduction
XXIII (78) - 2017 Vol.XVIII, No. 66 - 2012 170 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 171 , ranking the , ranking 1 The west coast . The mountains . The spas and was the first holiday resort. Later a large number of Annual carnival bell ringers’ pageant from the Kastav area Lacemaking in Croatia Source: United Nations Educational, Scientific and Cultural Organization: Intangible Cultural Heritage 2017. Two-part singing and playing in the Istrian scale Festivity of Saint Blaise, the patron of Dubrovnik Hrvatsko Zagorje Traditional manufacturing of children’s wooden toys in Spring procession of Ljelje/Kraljice (queens) from Gorjani Procession Za Križen (‘following the cross’) on the island of Hvar Bećarac singing and playing from Eastern Croatia Nijemo Kolo, silent circle dance of the Dalmatian hinterland Ojkanje singing Gingerbread craft from Northern Croatia Sinjska Alka, a knights’ tournament in Sinj Community project of safeguarding the living culture of Rovinj/Rovigno: the Batana Ecomuseum Community project of safeguarding the living culture Mediterranean diet Klapa multipart singing of Dalmatia, southern Croatia Namely, 1 the patron of Dubrovnik, and the Procession following the cross in Hvar. the following Procession of Dubrovnik, and the patron the Dubrovnik, old city of cultural sites, such as the has 8 UNESCO Croatia Croatia boasts 15 UNESCO intangible cultural heritages Croatia boasts 15 UNESCO intangible first in Europe, such as lacemaking, gingerbread craft, the festivity of in the middle are tranquil and green. The plains in the eastern part are part eastern plains in the The green. tranquil and are middle in the a significant tourist destination. fertile and golden. Zagreb is also Inland areas offer mountain resorts, agro-tourism resorts, mountain Inland areas offer ranking the 10th in the world (Blue Flag 2017). Croatia is world famous for is world 2017). Croatia (Blue Flag world 10th in the the ranking naturist commercial develop to country European first the was It naturism. of naturism. visitors are involved in the industry resorts. Quite a few 99 by eco-label trusted Blue Flag beaches (a millions world-renowned and 19 marinas in 2017, around the globe) awarded sites the number of and sand. Opatija islands. Hvar is rated as along the coast and numerous resorts sprang up of total a are There world. the islands in beautiful most ten the of one Nautical Nautical tourism along the Adriatic Sea is most significant. sea, sunshine featuring and blue, Sea is picturesque Adriatic along the amazingly dotted with lavender, agave, olive grove and vineyard, which which vineyard, and olive grove agave, with lavender, dotted amazingly and stimulating. is most attractive and cultural tourist resources. The mysterious land is full of alien appeal, appeal, alien of is full land mysterious The resources. tourist cultural and fied UNESCO UNESCO 2 Ancient and and Ancient ooperate with certi with ooperate This is especially outstanding, miraculous and and miraculous outstanding, This is especially 2 . and Kopački rit (Croatia: Full of life 2017). Ancient and Ancient 2017). life of Full (Croatia: rit Kopački and and Plitvička jezera) and 11 nature parks, such as
Papuk el agencies may apply to be qualified as travel agencies Mljet receive Chinese tourist groups. Also, an attempt should be should an attempt Also, groups. receive Chinese tourist Krka, Venetian Works of Defence between the 16th and 17th Centuries: Stato da Terra – Western Stato da Mar Source: UNESCO 2017. Historic City of Trogir The Cathedral of St James in Šibenik Ancient and Primeval Beech Forests of the Carpathians and Other Regions of Europe Stari Grad Plain Stećci Medieval Tombstones Graveyards Historical complex of Split with the Palace of Diocletian Old City of Dubrovnik Plitvice Lakes National Park Episcopal Complex of the Euphrasian Basilica in the Historic Centre of Poreč Namely, 2 organizing travel agencies in China, to include one or two top Croatian two top Croatian or in China, to include one travel agencies organizing and Wang Dynasty), most possibly, to be included in their sightseeing their be included in possibly, to Dynasty), most Wang and Hungary Spain, Italy, Greece, with together Europe, Southern in itineraries c to made be should attempts Furthermore, etc. Dubrovnik, Split or Plitvička jezera) in the itineraries of major Chinese travel Chinese major of itineraries the in jezera) Plitvička or Split Dubrovnik, Omega even Voyages, Mandarin as Panda, (such in Europe agencies Croatian trav Croatian which can example spots (for scenic Croatian top two or one include to made agencies, establishing partnerships. General group long-term strategic expanded. Local and can be further sightseeing products are traditional Developing diversifiedDeveloping specialized tourist and products and souvenirs with Chinese travel cooperation strengthen Croatia that It is recommended adventurous rock climbing. adventurous rock delights, especially seafood, such as salmon, squid, octopus, shrimp, octopus, squid, as salmon, such especially seafood, delights, seabass and cuttlefish, all really fresh and tasty. Moreover, people can enjoy trekking, hiking, sailing, diving, parasailing, sea kayaking and medieval architecture of diversified styles are well preserved here, imbued imbued here, preserved well are styles diversified of architecture medieval gastronomical offers Croatia insight. cultural and historical profound with In addition, Croatia has set up 8 national parks (for example, has set up 8 national In addition, Croatia Brijuni, Medvednica, and geographically. natural heritages, namely, Plitvice Lakes National Park and Park National Lakes Plitvice namely, heritages, natural Forests Beech Primeval both demographically indeed a small for Croatia is incredible, country, Diocletian Palace in Split and the old city of Trogir. Besides, it has it Besides, Trogir. city of old the Split and in Palace Diocletian
XXIII (78) - 2017 Vol.XVIII, No. 66 - 2012 172 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 173 he island of Brač, hop to the island of Hvar, then Hvar, of island the to hop Brač, of island he , the itinerary is both fascinating and feasible. , the itinerary is both fascinating tour is also alluring and profitable. Croatia is reputed as lavender. The souvenirs must be uniquely explored and developed, nicely souvenirs must be uniquely explored lavender. The packaged, and reasonably and attractively priced. shopping. Although Croatia does not have world-famous brands, it does have world-famous not does Croatia Although shopping. and lace honey, cheese, olive oil, wine, as necktie, specialties, such have restaurants had better prepare English menus. about crazy are people as Chinese ignored be cannot Souvenirs is rich in gastronomical offer, grilled seafood, grilled meat, čevapčići (a Local few. a just name to beer, black meat), minced with kebab, of type attractions of Croatia Food is an indispensable part, as Chinese people enjoy eating. Croatia depart from Split, jump to t to jump Split, from depart to the island of Korčula, and finally arrive in Dubrovnik. Covering major The island-hopping tour is unique, chic and trendy, derived from classic from derived trendy, and chic is unique, island-hoppingThe tour guests the which in itinerary an introduce to I’d like Here nautical tourism. may appreciate the champaign (open country) in a hot balloon. They may appreciate the champaign culture as well. may experience the colorful folk enjoy the sea, sand and sunshine. They have a lot to do, swimming, eating, swimming, do, to lot a have They sunshine. and sand sea, the enjoy sailing, diving, even parasailing, sea kayaking, or just relaxing, enjoying the leisure and pleasure of life. In Starigradsko Polje of Hvar Island, they The honeymoon and Brač, or Rovinj Hvar, in stay may newly-weds The hotspot. vacation a definitely appealing to photographers. The photographic tour is lucrative, is tour photographic The photographers. to appealing definitely and enough light. wait for the sunset, the ice wave, as it takes time to storks. The migratory birds perch beside the river Sava from April to June, beside the river Sava from birds perch migratory storks. The and then fly to their old nests in South Africa. The endangered species is country for photographers. There are so many picture-perfect scenes, the scenes, picture-perfect many so are There photographers. for country the imposing medieval blue Adriatic Sea, and the vast city of Dubrovnik, European are rare there lavender in Hvar. Moreover, expanse of purple tourism products. I’d like to suggest some high-end tourist products here. high-end tourist to suggest some I’d like tourism products. is a beautiful Croatia is highly recommended. tour A photographic Meanwhile, Meanwhile, explore and develop diversified, specialized and customized attractions in their sightseeing itineraries in Southern Europe. Europe. in Southern itineraries their sightseeing in attractions s far as I know, Croatian people do not do people Croatian know, as I s far cles for tourists, as China is a kingdom of bicycles. Also, set up bicycles. Also, of as China is a kingdom tourists, cles for usually keep the time. In order to provide good service, the Croatian usually to provide good service, the keep the time. In order off. guides must be punctual, while meeting, receiving and seeing guests With regard to service, more English-speaking guides are needed. It is also needed. English-speaking guides are service, more to regard With Chinese Chinese-speaking guides. Local some train to begin to necessary A guides. as temporary serve can tourists. Besides, cooperate with Chinese hotels, encouraging Chinese hotel hotels, encouraging Besides, cooperate with Chinese high quality companies to invest in Croatia, providing service for Chinese attractions in Croatia, very few English explanations can be found. The very few English explanations can be found. in Croatia, attractions not well exploited yet. rich tourist resources in Croatia are also visited Istanbul, and we can make a comparison between Dubrovnik between comparison a make can we and also visitedIstanbul, or long either introduction, English an find can we Istanbul, In Istanbul. and classic in Dubrovnik and other However, spot. in almost every scenic short, In terms of facilities, it is a good idea to provide some self-help touring gear provide some self-help touring idea to a good facilities, it is In terms of such as bicy English explanations in attractions. I English road signs and put on more Further improving tourist amenities and service and helpful for tourists. sort of a home away from home. sort of a home away informative which is very in every attraction, centers information are There “sobe” in front of their house, indicating that they offer “private rooms” for their house, indicating that they “sobe” in front of yet clean and pleasing, accommodation is cheap, tourists. The private reached conveniently by boat, plane, car, bus or train. by boat, plane, car, bus or reached conveniently is The accommodation put the sign and inexpensive. Some people cozy The tourist attractions in Croatia are easily Croatia are attractions in The tourist accessible. can be They Agreeable infrastructure, tourist facilities and service of Croatia Tourist facilities service and Tourist
XXIII (78) - 2017 Vol.XVIII, No. 66 - 2012 174 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 175 it, 8. In Great by 7. However, the Croatian by . Croatia joined the European se currency in exchange rate. Irate. exchange in currency se reasonable not joined the euro zone yet. When we do climate, warm in winter and pleasant in pleasant and winter in warm mild climate, a 9. While in America, multiply by of attractions in Croatia is be environmentally very limited. We must number, they do not pose huge pressure on the delicate environment. delicate the on pressure huge pose not do they number, environment. the vulnerable And the tourists must be reminded to protect Take nothing but photos, leave nothing but footprints. and other major European countries and capable consumption capacity, tourist products. They have strong are seeking for specialized of bringing tourism income to Croatia. Meanwhile, as they are small in as high-end customer sources, specifically, for those well-offItaly, Germany France, to have already been who people educated and well- as not to spoil the pure environment. as not to spoil the pure environment. market of Croatia should be positioned In my opinion, the Chinese tourist capacity sensitive Chinese tourists to Croatia, so concerning the position-setting of from take warning To in thick haze now. Many Chinese cities are shrouded bearing The Croatia. is a must for sustainable tourism development Adhering to sustainable tourism to protect the vulnerable environment Britain, multiply Chine as same the almost is Kuna currency high. rather is ratio cost-performance The RMB. with paying just am I like feel Union in July 2013, but it has Union in July 2013, to multiply the price tag shopping in Germany, we have speak good English. speak good English. and The prices are competitive or your personal life. Croatian people are very kind, warmhearted and and warmhearted very kind, people are personal life. Croatian your or friendly. They are quiet, refined and well-educated. Most of them can summer. It is sunny, not windy, thus very agreeable. It is a virgin land, with land, virgin is a It agreeable. very thus windy, not is sunny, It summer. environment. It is and an unpolluted very safe big trees, blue sky, fresh air, property, air, food, of safety the about worry to have don’t You Croatia. in with is blessed Croatia Favorable natural environment and human of Croatia Tourist environment Tourist Croatia, Chinese people have to go through visa which is Croatia, Chinese people have to go through formalities, regulations the to according However, inefficient. and complicated rather Croatia is not a Schengen state yet, which is most obstructive. To enter To obstructive. which is most yet, state a Schengen is not Croatia Croatia not a Schengen state for Chinese people and inconvenience yet to go through visa formalities Visa formalities to Croatia, thus ensuring the economic profits of airlines while benefiting the Chinese tourists to Croatia. enterprises in China, and endeavor to open a direct flight between China between flight direct a open to endeavor and China, in enterprises but passengers, be enough may not there beginning, the At and Croatia. the word-of-mouth advertising will definitely bring lots of Chinese people Croatian airlines may strengthen cooperation with relevant civil cooperation aviation Croatian airlines may strengthen Cooperating with airlines Chinese and open direct flight China between and Croatia reasons might be the opening of direct flight between China and Turkey, of tourists. which greatly facilitates the exchange is just a little closer to China than Zagreb. attracts However, many more Chinese every tourists than Croatia. year And one of Turkey the major To go to Zagreb from Shanghai, I usually To go to Zagreb or Moscow, transit in Istanbul, and time-consuming. troublesome which is tiring, or Doha, or Frankfurt, Istanbul Geographically speaking, Croatia with Turkey. We can compare Croatia is far away from China, while Chinese people prefer to go to nearer to go to people prefer China, while Chinese from Croatia is far away Philippines, Bali Island in Indonesia, like Thailand, the and cheaper resorts even the Maldives. There is no direct flight between China and Croatia. Long distance China and Croatia between with no direct flight Spatial distanceSpatial Weakness analysis Weakness
XXIII (78) - 2017 Vol.XVIII, No. 66 - 2012 176 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 177 which is somewhat troublesome, but not really disturbing. Anyway, the Anyway, really disturbing. not but troublesome, is somewhat which price is acceptable. to first convert RMB to euro, then change euro into Kuna. If they haven’t euro, back to Kuna convert cash, they will have to used up all of their goods and services in Croatia is comparatively lower than that of euro of that than lower is comparatively and services in Croatia goods 2017) (China UnionPay card In addition, China UnionPay countries. zone have is still accepted in Croatia. As a result, Chinese tourists usually not euro zone yet. The Croatian local currency is euro zone yet. The Croatian local called which is Kuna, almost level of consumer price The rate. in exchange same as Chinese RMB the accepted in Croatia the joined not has it but 2013, July 1 on Union European the joined Croatia Croatia card not still in theeuro not and China UnionPay zone yet Payment mode Payment the Schengen zone in the near future, and moreover, to grant Chinese to grant and moreover, in the near future, zone the Schengen simplifying visa further tourists a visa or thereby waiver program on arrival, people. or waiving visa formalities for Chinese Easy, simple and join to efforts flexiblegreat make to Croatia for essential is it Thus, recommended. visa policies and regulations strongly are which can strongly facilitate the trip of Chinese tourists in Croatia and facilitate the trip of Chinese which can strongly other Schengen states. Croatia joined the European Union on 1 July 2013. And it will, in due time, country, a Schengen become and Convention Schengen the accede to formalities for Chinese people an additional Croatian visa, which is somewhat encouraging. visa, which is somewhat encouraging. an additional Croatian Striving to become a Schengen state visa and simplifying or waiving the Republic of Croatia 2017). So, for those Chinese tourists who originally originally tourists who Chinese those 2017).for Croatia So, Republic of the way, without by the Croatia visit can they visas, Schengen apply for plan to holders of valid Schengen documents, as well as of the national visas and visas national the as of as well documents, Schengen valid of holders an require do not and Romania Bulgaria, Cyprus, of permits residence Affairs of Foreign (Ministry of Croatia” (Croatian) visa additional to enter on the website of the Croatian Embassy in Beijing, “All visitors who are 4 236 000 43 045 10 162 -0,4 2014 4 254 000 43 516 10 228 -1,1 2013 4 269 000 43 959 10 297 -2,2 2012 10 446 -0,3 2011 4 283 000 44 737 10 479 -1,7 2010 4 296 000 45 022 Growth rates (unit: %) Gross domestic product per capita (unit: euro) Gross domestic product, market prices (unit: million euro) Total population Table 1: Gross Domestic Product, Annual Calculation Table 1: Gross Domestic Product, Source: Croatian State Bureau of Statistics 2015. and recession in Croatia (See Table 1). Yet the gross domestic product per gross domestic product the 1). Yet and recession in Croatia (See Table as capita in 2014 that Croatia is rated still exceeds 10,000 indicating euros, a developed country as before. of Croatia, the annual gross domestic product of Croatia has been gross domestic product the annual of Croatia, continuously decreasing, reflecting the on-going economic depression Croatia the 2015 with Statistical of the Republic In accordance Yearbook Continuous economic depression and significance of tourism industry in Tourism statisticsTourism Opportunity analysis Opportunity paying with credit cards in Croatia. We may look forward to the opening cards in Croatia. We may look paying with credit service in Croatia. of the China UnionPay rate, Croatia is not in a rush to join the euro zone. We might as well wait in payment services open to is likely China UnionPay Meanwhile, and see. of convenience the enjoy can tourists Chinese that so future, the in Croatia Due to the continuous economic depression and high unemployment and high unemployment depression economic the continuous Due to Looking forwardLooking service to the UnionPay of China opening in Croatia
XXIII (78) - 2017 Vol.XVIII, No. 66 - 2012 178 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 179 17.2% 264 000 177 000 61 000 2014 13 128 000 1 505 000 11 623 000 1 989 000 1 102 000 1 061 000 1 019 000 661 000 630 000 441 000 429 000 256 000 . Therefore, . The number of number The 74 000 159 000 42 000 2013 12 434 000 1 485 000 10 948 000 1 932 000 1 067 000 1 017 000 968 000 652 000 636 000 449 000 389 000 220 000 418 000 307 000 174 000 47 000 155 000 43 000 10 369 000 1 853 000 1 054 000 1 051 000 946 000 647 000 544 000 2012 11 835 000 1 466 000 tourism industry accounted for accounted industry tourism total tourist arrivals have been steadily on steadily been have arrivals tourist total 395 000 256 000 151 000 33 000 132 000 22 000 9 927 000 1 661 000 1 100 000 1 150 000 893 000 638 000 495 000 2011 11 456 000 1 529 000 14 and up to 18.1% in 2015 (See Table 3) Table 18.1% in 2015 (See up to 14 and 13 000 133 000 18 000 147 000 606 000 454 000 388 000 241 000 1 017 000 1 018 000 810 000 1 493 000 9 111 000 1 525 000 2010 10 604 000 tourism industry is really crucial and significant in Croatia, especially f total GDP in 20 total f Japan China USA Korea, Republic of United Kingdom Poland France Austria Czech Republic Slovenia Italy tourists Germany tourists Foreign Total Domestic Table 2: Tourist Arrivals by Country of Residence Table 2: Tourist Arrivals Source: Croatian State Bureau of Statistics 2015. the inbound tourism. the percentage of receipts from the from receipts of percentage the o the rise, reaching more than 13 million in 2014 (See Table 2). Table 2014 (See in 13 million than more reaching rise, the The in 2014. domestic tourists of that 10 times than is more tourists foreign 2014. And its population in as many as of tourists is 3 times total number However, in the meantime, the meantime, the in However, Germany, times in 2015. In terms times in 2015. In 2015 (Preliminary data) 2015 (Preliminary 43 845 7 949.8 18.1 a significant document “On Speeding situation of Chinese group tourists and situation of Chinese group r industry of China. It is quite a favourable industry of r 7 402.3 17.2 2014 43 060 Czech Republic and Poland. These countries Republic and Poland. These Czech of China issued Share of tourism in overall tourism of Share economy in % GDP (in million euro) GDP (in million revenues (in million Travel related euro) Table 3: Travel related revenues related 3: Travel Table China is a huge strategic tourist source market to be explored and market source strategic tourist China is a huge cultivated. However, the current tourism market. Outbound Tourism in 2016” (China Association of Travel Services 2016), of in 2016” (China Association Tourism Outbound 117 million person reached tourists China’s outbound world’s largest outbound China has become the of absolute number, China is a sizable customer market, with a population of 1.4 billion 1.4 billion of population a with market, customer sizable is a China China’s of Development the of Report “Annual the to people. According positioned as the strategic pilla strategic positioned as the policy. The State Council The up the Development of Tourism” in 2009. For the first time tourism was Attaching much importance to the of potential exploration Chinese tourist source market outnumbering Japanese tourists for the first time. outnumbering Japanese tourists were estimated at 61 000, accounting for just 0.46% of total tourists that arrivals tourist 177 000. And arrivals were tourist Japanese year. By contrast, increased drastically 264 000, in 2014 to Korea and amounted of South Although Chinese tourists are growing continually, the absolute figure is far from satisfactory. In 2014, tourist arrivals the total Chinese in Croatia Slovenia, Italy, Austria, the Slovenia, Italy, Austria, are mostly located in Europe, close to or adjacent to Croatia. Distance Asia. and America arrivals from less tourist are There element. critical is a Source: Ministry of Tourism of the Republic of Croatia 2016. Source: Ministry of Tourism arrivals come from tourist foreign In 2014, the most numerous
XXIII (78) - 2017 Vol.XVIII, No. 66 - 2012 180 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 181 ocal Chinese ocal ency in Croatia, focusing on sightseeing trips in Eastern Europe, ency in Croatia, focusing on sightseeing Consequently, much importance should be attached to the exploration the to should be attached importance much Consequently, of potential Chinese tourist source market. agencies in Europe, such as the Panda of Germany, Mandarin Voyages agencies in Europe, such as the Panda of Germany, Mandarin of France, Omega and Wang Dynasty of Great Britain. Croatia is Chinese travel usually not included in the itineraries of renowned backpackers. They usually travel to the surrounding countries, such as countries, surrounding the travel to usually backpackers. They Therefore, visit Croatia. would like to they and then Italy, Austria, Hungary, not specially and deliberately. they visit Croatia just by the way, The individual Chinese tourists are mainly those who are living, studying, who individual mainly those The Chinese tourists are Some are visiting in Croatia or in Europe. working, relatives or friends Zagreb, Pula, Poreč, Opatija, Plitvička jezera, Dubrovnik. Zadar, Trogir, Split and travel ag mainly Croatia and Hungary. Its classic 8-day includes itinerary in Croatia Taiwanese in Croatia. l only is the 2017) D.O. Zagreb (Limea Travel Travel Limea However, the above stated rule does not apply does not to tourist agencies in However, the above stated rule Taiwan. They can cooperate with any Croatian agency. I do find some to organize group tourist travel, and there is a list there of Croatian agencies group tourist travel, and to organize in Croatia. to receive Chinese tourist groups that are certified group tourism, organized only by certified travel agencies. It is not open for open not is It agencies. travel certified by only organized tourism, group certified are that agencies of list a made has China yet. tourism individual going abroad at their own expense in 2003. going abroad at of form the takes Croatia to holiday trip or sightseeing the present, At a Memorandum of Understanding between the Ministry of Tourism of of Tourism between the Ministry of Understanding a Memorandum a result, in 2003. As China of Administration Tourism State the and Croatia citizens Chinese for country destination as a tourist was listed Croatia The Republic of Croatia and the People’s Republic of China signed China of Republic People’s the and Croatia of Republic The individual tourists in Croatia is not inspiring. is in Croatia tourists individual therefore, can never therefore, may establish its representative and and representative may establish its 3 http://business.croatia.hr/en-GB/Croatian-national-tourist-board/Representative-
I think the positioning of tourism in Croatia must be rather unique, tourism in Croatia must be rather positioning of I think the and-branch-offices More information is available information at More 3 The Croatian National Tourist Board Tourist National Croatian The branch office in China, and set up an official Chinese website, making it Besides, I’d like to recommend differentiated activities for Croatia to activities for differentiated recommend Besides, I’d like to intensify tourism promotion and publicity in China. cater to the group psychology of Chinese consumers. cater to the group psychology of tend to be rich and diversified. How to ingeniouslysimple, direct and easily one understandable Here I suggest tourism? package Croatian of Europeans”, which can most popular resort slogan, “the marketing (Wikipedia and pioneers of positioning 2017), one of the founders theory, Croatia of resources tourist the However, differentiated. and characteristic Obsessed and enlightened by the positioning theory of Jack Trout Jack of theory positioning by the enlightened Obsessed and Positioning accurately and doing muchPositioning promotion and publicity in China be a selling point indeed. It is peaceful and picturesque. And it is very And is peaceful and picturesque. It indeed. be a selling point and promotion, marketing of safe. The importance be overstressed. Croatia boasts 15 UNESCO intangible cultural heritages, 8 UNESCO cultural cultural heritages, Croatia boasts 15 UNESCO intangible heritages, which is fantastic and can heritage sites, and 2 UNESCO natural thus somewhat turbulent and unsafe. However, those who have been have who those However, unsafe. and turbulent somewhat thus let Hence, above all, we must it, with no exception. to Croatia all like called Croatia. is a beautiful country that there know Chinese people Chinese people know very little about Croatia, or even misunderstand know very little about Croatia, Chinese people Croatia. In their mind, Croatia and is now still in chaos, and the War of Independence, Yugoslavia after has just been separated from former Chinese people knowing veryknowing Chinese people Croatia little about Brand popularity Threat Threat analysis
XXIII (78) - 2017 Vol.XVIII, No. 66 - 2012 182 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 183 , , etc. www.ctrip.com in China may have it published may have it published in China www.springtour.com , concerned www.lvmama.com films,collaborating with well-known Chinese film directors to tour is most lucrative and promising. Furthermore, try to attract big Chinese companies to reward their reward companies to big Chinese attract to try Furthermore, incentive the product, Being a high-end Croatia. employees with a trip to exploration section of Chinese tourism websites, such as section of Chinese tourism websites, such exploration www.tuniu.com, Promotion on the internet cannot be underestimated either. Post the Post either. be underestimated cannot internet the on Promotion destination the advertisements onto and tourism materials promotional the audience. If possible, provide scenic films for Chinese TV stations, have stations, TV Chinese for films scenic provide possible, If audience. the China. commercials in and broadcast TV in China, video clips transmitted Marco Polo was born in Korčula, Croatia. Both can be incorporated into broadening thus documentaries, and programs educational and scientific In addition, work on special television programs together with Chinese In addition, work on special together television programs engineer and inventor Nikola the renowned For example, counterparts. traveler and merchant famous the And Croatia. Smiljan, in born was Tesla stars, sports stars and talents, inviting them to hold weddings or other events other hold weddings or to them stars, sports stars and talents, inviting customs. and conditions local Croatian well popularizing thus Croatia, in Board may finance a reputable TV station in China to come to Croatia to Croatia to come to China in station TV reputable a finance may Board shoot scenic shoot movies in Croatia. Besides, cooperate with Chinese celebrities, film The publicity of TV programs is most intense. The Croatian National Tourist Croatian The is most intense. publicity The of TV programs Croatia. The tourism bureau tourism The Croatia. to launch a book arrange to author the with cooperate and China in to more Chinese people. publicize Croatia secret garden of Europe (Hrvatska, tajni vrt Europe)”, written by Mr. Xu Huili. book for Chinese self-service It is a helpful and informative in tourists agencies both in China and Europe. agencies both in all help of a book, “Croatia, independently, with the I toured over Croatia media is direct and practical. More brochures, pamphlets, pamphlets, More brochures, direct and practical. print media is Traditional and in both English literature promotional albums, and other picture should be placed Chinese travel centers and information in tourism Croatia. easier for Chinese tourists to acquire updated tourism information about about information tourism updated to acquire tourists Chinese for easier
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XXIII (78) - 2017 Vol.XVIII, No. 66 - 2012 184 Vol.XVIII,XXIII No. (78) 66 - -2017 2012 185 http://whc. https://en.wikipedia. [Accessed 2 August 2 August [Accessed ) received her MA from . [online]. Available at: [online]. . . [online]. Available . [online]. at: [Accessed 2 August 2017]. [Accessed 2 August [Accessed 2 August 2017]. [Accessed Jack Trout World Heritage List Heritage World [email protected] ( unesco.org/en/list/ org/wiki/Jack_Trout unesco.org/culture/ich/en/state/croatia-HR 2017]. World in 2016. International Business and Economics in 2012. She has been in 2012. She Business and Economics International in the 33rd Edition of Marquis’ Who’s Who included in the academic papers on SSCI, EI and CSSCI journals Quality Award Bilingual Teaching the also won and years, in recent of Shanghai University of Award Excellent Teaching and the Hotel Management, Traditional Chinese Culture and A Hotel Management, Traditional Guides. She has published for Tour Simulated Course and Tourism Management School, Shanghai University of Shanghai School, Management Tourism and mainly gives She Business Economics. International and Business bilingual Communication, courses on inter-cultural Wang Qian at the Event Professor Fudan University and is Associate Wikipedia, Wikipedia, 2017. UNESCO, 2017. 2017. UNESCO,