Balkans Anchored to EU - Despite China's Growth, Report

Trade volume between China and countries along the "Balkan Silk Road" reached 3.3 billion euros in 2015-16, but Europe still remains the most important foreign trade partner of Balkan countries, according to a new report commissioned by the European Bank for Reconstruction and Development, or EBRD, and published on Thursday.

According to the report, there are "legitimate concerns" about the Chinese engagement in the "16+1" framework, which was set up as part of China's Belt and Road Initiative to improve trade and economic relations with 16 European countries.

The focus of concern is that Chinese companies serve as proxies for the Chinese state, and employ few locals, while infrastructure projects and lending agreements burden governments with large debt obligations.

According to data, the total trade volume between China and selected Western Balkan economies reached 3.3 billion euros in 2015-16. Serbia accounted for almost half of that total trade volume.

The report took a close look at three Balkan countries - Serbia, Macedonia and Bosnia and Herzegovina - whose trade exchange with China is balanced "almost exclusively" in favour of the Asian giant.

The most recently available international trade data for Serbia show that China was the country's fourth largest trading partner in 2016 and second largest import originator. However, China does not feature even in the top ten destinations for Serbian exports.

Serbia's importance to the Chinese initiative has been emphasized by Chinese President Xi Jinping, who sees Serbia playing a "leading role in the cooperation between China and the countries of Central and Eastern Europe", the report says.

Seeking to back up such diplomatic statements, Beijing is becoming a major lender...