Trade between Serbia and China for the first seven months of this year exceeded 3.7 billion euros. By signing a number of bilateral agreements, especially the Free Trade Agreement, an additional, great opportunity is created for the Serbian economy, says Professor of the Faculty of Economics Ljubodrag Savić.
However, he notes that there will be little benefit from this – unless Serbian producers unite. If each of them were to perform alone, there is nothing to look for in China, but if they form an association, there are chances – and not small ones, says the professor.
The Serbian delegation in China signed a series of agreements, but the greatest emphasis is on the Free Trade Agreement , which will enter into force in the middle of next year.
Professor of the Faculty of Economics Ljubodrag Savić said that he sees this as a great chance for the Serbian economy, since China is today a locomotive of world development.
” Even the USA is wary of China – in the economic sense. It is truly the country that can offer the world the largest amount of quality or lesser quality goods, at probably the lowest prices. And that is, let’s say, a danger for Serbia. But I am surprised that some of our citizens speak about it with indignation – ‘cheap Chinese goods will flood the Serbian market’. As far as I know, this has been happening to us since the 90s, and especially in the last ten years, but the whole world is flooded”, says Professor Savić.
He reminds that Serbia signed a similar agreement with the EU in 2000 and notes that for those who can cooperate well with the EU, this agreement with China will mean nothing because, he points out, the Chinese market is very demanding.
“Serbia does not have a single product that it can mass produce – in large series, maintain the same quality and be constantly present on the Chinese market. That’s the biggest problem for Serbian businessmen, but that doesn’t mean that when Zvezda comes out against Milan, they should give up right away. So, we all got or everyone got a chance, we’ll see how much they’ll use it”, says Savić.
He points out that the biggest help for businessmen is the opening of a large market, with customs concessions for some agricultural products, which will initially make Serbian products cheaper than products from European countries.
He pointed out that there is a surplus of agricultural products in Serbia, such as wheat, and that in the context of the war in Ukraine, this is also a good opportunity for Serbian producers and traders.
The list of Serbian products to be exported to China includes, among others, apples, wine, pharmaceutical products…
” I am afraid that if we look only at our domestic producers, there will be little benefit from that agreement. The task for producers is to unite. Imagine winemakers, how many winemakers do you have in Serbia today?
And each of them, if they do it alone, has nothing to look for in China. But if they create an association that will negotiate on behalf of everyone, there is already some chance, and not a small chance at that,” the professor points out.
He notes that this is now a task for both the Chamber of Commerce and the Government of Serbia.
” I believe that the Government of Serbia will help in various ways those producers who want to appear on the Chinese market.
Because when you come to a market, it goes without saying that you will stay there a little longer. But you have to go, like everyone else, through the pain of childbirth. And there is the task of the relevant ministries, the V lade. You have a variety of special fund this. You have the possibility of favorable credit.
You have the possibility of exempting taxes, various other things… But all that will happen or can happen if you have interested manufacturers and traders who want to conquer the Chinese market, which is like an uninhabited fortress at the moment”, says Savić .
He points out that the opportunities have been created and that the conditions are good. As for Chinese investments, he emphasizes that they are already in Serbia and that Serbia is China’s springboard for the European market.
“We are not yet a member of the European Union, but we have a lot of agreements with the European Union that allow the Chinese to, through joint production in Serbia, be able to market it more favorably, i.e. produce products with a lower price on the European market, that is, within the European Union”, says the professor which expects even greater interest in investing.
He notes that, in these turbulent times, it is good to have an ally like China, and that it will guarantee both economic and political stability, as well as military stability.
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