7 July 2020 ISSN: 2560-1628 2020 No. 28 WORKING PAPER BiH Diplomatic Perception on Cooperation with China: From 1995 to the BRI Vlade Simović Anja Mudrenović Kiadó: Kína-KKE Intézet Nonprofit Kft. Szerkesztésért felelős személy: Chen Xin Kiadásért felelős személy: Wu Baiyi 1052 Budapest Petőfi Sándor utca 11. +36 1 5858 690 [email protected] china-cee.eu BiH Diplomatic Perception on Cooperation with China: From 1995 to the BRI Vlade Simović1 Anja Mudrenović2 Abstract This year will mark 25 years since Bosnia and Herzegovina was recognized by People’s Republic of China as an independent state in 1995. Diplomatic relations thus officially started with the signing of the “Mutual Declaration on Establishing Diplomatic Relations between PR China and Bosnia and Herzegovina” in Zagreb, Croatia. The opening of the Embassies in 1997 and 1999 respectively marked the beginning of diplomatic exchange. The aim of the paper is to introduce the period that preceded the current relations and how the relations developed onwards. The vision of the first Ambassador to Beijing Svetislav Mudrenović who wanted Bosnia and Herzegovina to take the path of Deng Xiaoping’s “Reform and Opening up Policy”, which he saw as the best way for Bosnia and Herzegovina to recover from the post war period. Understanding China became the prerequisite, and the first students enrolled in Belgrade Faculty of Philology were sent to China to practice the language. The first companies from Bosnia and Herzegovina had the opportunity to gain experience in doing business with Chinese companies. This was the beginning of diplomatic relations and cooperation between the People’s Republic of China and Bosnia and Herzegovina. The first part of the paper will tackle development of the relations through economic cooperation, educational exchange and cultural activities. It will present the foundations that were built prior to further development. In the following sections, the paper will further discuss the position of BiH in the 17+1 mechanism of cooperation and its role in the Belt and Road initiative and will lay down recommendations for future development. Keywords: People’s Republic of China, Bosnia and Herzegovina, 17+1 cooperation; the BRI 1 Vlade Simovic is an associate professor at the Faculty of Political Science at the University of Banja Luka and an author of many scientific papers in the field of political science. 2 Anja Mudrenovic is a professor of Chinese Language at the Confucius Institute at the University of Banja Luka. 1 Establishment of diplomatic cooperation between BiH and China Diplomatic cooperation between Bosnia and Herzegovina (BiH) and the People's Republic of China (hereafter China) officially began with the adoption of the "Joint Declaration of the Establishment of Diplomatic Relations between Bosnia and Herzegovina and the People's Republic of China" in Zagreb on March 27, 19953. Mutual contact was established through the embassies of BiH and China in Zagreb. On that occasion, it was agreed that diplomatic relations would be officially established on April 3 of the same year.4 The document, entitled “Joint Declaration of the Establishment of Diplomatic Relations between Bosnia and Herzegovina and the People's Republic of China” and written in the official languages of Bosnia and Herzegovina, English and Chinese, states that the Governments of the two countries have agreed to develop friendly relations and cooperation on the basis of the principles of respect for the sovereignty and territorial integrity of both countries, non- aggression, non-interference in the internal affairs of the other country, equality, mutual benefit and peaceful coexistence. In addition, Bosnia and Herzegovina expressed its position recognizing that the Government of China is the only legitimate representative of China in international relations and recognized the “One China Policy”, and China pledged to respect the Dayton Peace Agreement and equal rights of all peoples of Bosnia and Herzegovina. In accordance with international practice, the Governments of both countries agree to provide all necessary assistance to diplomatic representatives. In July 1997, the first Ambassador of China to Bosnia and Herzegovina, Wen Xigui, handed over copies of his letter of credence to the then Minister of Foreign Affairs of Bosnia and Herzegovina, Jadranko Prlić. During the reception and conversations, the first Chinese Ambassador to Bosnia and Herzegovina outlined the principles of the PRC's foreign policy towards Bosnia and Herzegovina and expressed China's readiness to assist Bosnia and Herzegovina in post-war renewal and reconstruction5. With the opening of the diplomatic mission of China in Bosnia and Herzegovina, the first step was taken towards cooperation in all areas, especially in the field of economy, politics, education, culture and sports. By establishing diplomatic missions, China and BiH have finally been able to achieve bilateral relations and communication that does not take place exclusively through international organizations, as it did before. The opening of the diplomatic mission of BiH in Beijing was a 3 Report of the Embassy of Bosnia and Herzegovina for 1998, Beijing, February 10, 1999 4 "Reminder of the People's Republic of China", Ministry of Foreign Affairs of Bosnia and Herzegovina-Sector for Bilateral Relations and Cooperation, No. 06-AR-11504/97 5 The same as above 2 real basis for further strengthening of mutual relations. The decision to appoint the ambassador of BiHto China was made on September 19, 1997, and the first ambassador of BiH to China, Svetislav Mudrenović, handed over his letters of credence a year later, in September 1998.6 The embassy in Beijing was officially opened in January 1999. On that occasion, Ambassador Mudrenović especially emphasized that the basic direction of Bosnia and Herzegovina's foreign policy, based on the full implementation of the Dayton Peace Agreement, is to provide peace, stability and economic recovery to the peoples of Bosnia and Herzegovina through international cooperation. The vision of BiH's first ambassador to China followed China's principle of reform and opening up to the world, established by Deng Xiaoping, and China has insisted on the policy since 1978. He considered this the best way to recover Bosnia and Herzegovina and its peoples from the effects of the war devastation that had taken place several years earlier. As an engineer and long-term member of the board of the Chamber of Commerce of Republic of Srpska, Ambassador Mudrenović put special emphasis on economic cooperation. From 1992 to 1996, he was the president of the Chamber of Commerce of the Banja Luka region, and from 1996 to 1998 he was the president of the Chamber of Commerce of the Republic of Srpska. There were many elements for cooperation between BiHand China, especially in the field of trade and economy, and many international agreements were already being prepared. The Agreement on Economic and Trade Cooperation, the Agreement on the Promotion and Protection of Investments and the Agreement on Double Taxation Avoidance stand out in particular. The Agreement on Economic and Trade Cooperation was signed in 2000, and the Agreement on the Promotion and Protection of Investments in 20027. Also, in that period, the possibility of abolishing visas for citizens of BiH and China was mentioned for the first time. In the period between 1998 and 2001, when the mandate of the first ambassador of Bosnia and Herzegovina in Beijing ended, solid foundations were laid for cooperation between the two countries and mutual relations started to rise. Economic and foreign trade cooperation has advanced especially. From the opening of the Embassy of Bosnia and Herzegovina until the end of 2000, foreign trade has increased by 14 times. In an interview with the official magazine of the Chamber of Commerce of Republic of Srpska "Economic Information" in April 2001, Ambassador Mudrenović emphasized that in that period, BiH was one of the few countries that 6 Report of the Embassy of Bosnia and Herzegovina for 1998, Beijing, February 10, 1999 7 Grujić, M., Stević, LJ. (2015) „BiH na novom putu svile“ in „Politeia“. Banja Luka: Faculty of Political Sciences 3 was in surplus in foreign trade with China8. This was a great success considering that Bosnia and Herzegovina had practically no bilateral cooperation with China until then, except through treaties and agreements signed by the former SFRY and China, and also because far larger and more developed countries in that period did not achieve such success. The delegation of the Chamber of Commerce of Bosnia and Herzegovina visited China at the invitation of the Chamber of Commerce of China, and an Agreement on Cooperation between the two chambers of commerce was signed. The Chamber of Commerce and industry of Republic of Srpska also sent a delegation to China, at the invitation of the Hebei Province Chamber of Commerce. Fruitful economic cooperation has propelled better political, educational and cultural cooperation. The city of Banja Luka has established cooperation with the Chinese city of Baoding, a city in Hebei Province, which has about 2 million inhabitants. In addition, the city of Sarajevo has intensified relations with the city of Tianjin, which now has about 11 million inhabitants. The Embassy of Bosnia and Herzegovina in Beijing has also agreed on scholarships for students who would like to improve their Chinese language at one of the universities in the Chinese capital. In those years, the first