The European Union and China Trade Presence in Serbia

Abstract

The European Union has been the dominant trade partner of Western Balkan countries for a long time; however, China's trade and economic influence in the region is growing yearly, and its engagement in the region has intensified after the launch of the Belt and Road Initiative. Serbia is the region's most important strategic trading partner for the EU and China. This paper addressed the trade presence of the EU and China in Serbia, examined the trade position of the EU and China in Serbia, the intensity of their mutual foreign trade (TII index), and the trade competitiveness of Serbia's export in selected traded commodities (RCA1 index). The trade position of the EU in Serbia was confirmed as clearly more substantial than that of China, and trade intensity was high. However, China's trade position grew despite its trade exchange intensity, which was well below potential. However, the low values of Serbia's competitiveness index are a severe obstacle to the increase of Serbian exports and some persistent obstacles in the framework of export procedures. The growing passive trade balance in relations with China remains also disturbing.