The relationship between China and Croatia has evolved significantly since Croatia’s independence, marked by a shared focus on economic cooperation, cultural exchange, and political dialogue. Although China and Croatia are geographically distant and differ greatly in size and economic influence, they have cultivated a partnership rooted in mutual respect and strategic interests. Croatia sees China as an essential global partner, especially in terms of investment and trade, while China values Croatia as a gateway to Central and Eastern Europe and a partner in the Belt and Road Initiative.
1. Historical Background
The historical relationship between China and Croatia is a relatively recent one, given that Croatia became an independent country in the early 1990s. However, the foundation of their interactions was laid in the Yugoslav era, as China had diplomatic ties with Yugoslavia, of which Croatia was a part until its dissolution.
Early Interactions Under Yugoslavia
- China-Yugoslavia Relations: Before Croatia’s independence, China maintained diplomatic and economic ties with the Socialist Federal Republic of Yugoslavia. The relationship between China and Yugoslavia was relatively neutral compared to other socialist nations, as Yugoslavia had a non-aligned stance during the Cold War. This non-aligned movement allowed China to develop an independent approach to each of the Yugoslav states, setting the stage for future relationships with the nations that emerged after Yugoslavia’s dissolution.
- Limited Economic Exchange: During the 1980s, China and Yugoslavia conducted limited trade and cultural exchanges. While these interactions were modest, they established early contact points that China later expanded upon with Croatia. Yugoslavia’s economic policies and China’s gradual opening-up allowed for some trade, mainly in manufactured goods and agricultural products.
Croatia’s Independence in 1991
- Establishment of Sovereign Relations: Following the dissolution of Yugoslavia, Croatia declared independence in 1991, leading to recognition from the international community. China formally recognized Croatia’s sovereignty in April 1992, one of the first major global powers to do so, and established diplomatic relations within the same year. This move was instrumental for Croatia, as it helped to solidify its standing as a newly independent nation.
- Political and Economic Reforms in Croatia: The early 1990s were marked by political and economic reforms as Croatia transitioned from a socialist system to a market-oriented economy. These shifts aligned with China’s ongoing economic reforms under its “Reform and Opening-Up” policies, laying a foundation for mutual interest in economic cooperation.
Post-1990s and the Development of Bilateral Ties
- Growth of Bilateral Engagement: During the late 1990s and early 2000s, China and Croatia expanded their diplomatic and economic engagement. Croatia’s strategic location on the Adriatic Sea positioned it as a crucial link between Asia and Europe, an aspect that China valued highly as it began expanding its global reach.
- Increasing Diplomatic Exchanges: China and Croatia engaged in numerous diplomatic exchanges to strengthen bilateral ties, and Croatian leaders regularly emphasized the importance of establishing cooperative partnerships with major global economies like China. The relationship was nurtured by frequent high-level visits, which reinforced Croatia’s commitment to deepening its engagement with China.
2. Diplomatic Relations
Diplomatic relations between China and Croatia are characterized by formal agreements, state visits, continuous dialogue, and shared efforts to navigate both regional and global challenges. Diplomatic missions in Zagreb and Beijing serve as the foundation for these interactions, fostering cooperation on political, economic, and cultural levels.
Establishment and Growth of Diplomatic Missions
- Embassy Openings: Following the establishment of diplomatic relations in 1992, both China and Croatia opened embassies in each other’s capitals. The Croatian embassy in Beijing and the Chinese embassy in Zagreb became the main channels for formal dialogue, facilitating diplomatic, consular, and trade relations.
- Consulates and Representation: In addition to their respective embassies, China and Croatia have considered expanding diplomatic representation to other major cities to support regional businesses and manage consular affairs for their citizens. These missions support the flow of information and cooperation agreements between the two nations.
High-Level Visits
- Frequent State Visits: High-level visits between Chinese and Croatian officials have been instrumental in advancing diplomatic relations. Chinese officials, including members of the State Council and ministers, have visited Croatia to discuss areas of cooperation and explore investment opportunities. Similarly, Croatian leaders have visited China to strengthen ties and promote trade relations.
- Premier Li Keqiang’s Visit in 2019: One of the most notable visits was that of Chinese Premier Li Keqiang to Croatia in 2019. This historic visit underscored the importance of Croatia within China’s Belt and Road Initiative (BRI) framework. During his visit, several cooperation agreements were signed, and Premier Li emphasized China’s interest in supporting infrastructure development in Croatia, such as the Peljesac Bridge project.
Diplomatic Dialogues and Collaborations
- Regular Consultations: China and Croatia have established regular political consultations to address issues of mutual concern and discuss future cooperation in areas like economic growth, environmental protection, and cultural exchange. These dialogues help reinforce a shared commitment to sovereignty, stability, and constructive engagement.
- Cooperation in International Organizations: China and Croatia collaborate within major international organizations such as the United Nations, the World Trade Organization (WTO), and regional bodies like the Asia-Europe Meeting (ASEM). Croatia has often supported China’s proposals in international settings, while China respects Croatia’s alignment within the European Union and its adherence to EU regulations.
- Bilateral Cooperation Agreements: Over the years, China and Croatia have signed multiple bilateral agreements covering trade, investment, tourism, and scientific cooperation. These agreements provide a framework for enhancing collaboration in sectors crucial to both economies.
3. Trade and Economic Relations
Trade and economic cooperation are central aspects of the China-Croatia relationship. Both countries benefit from this partnership, with China viewing Croatia as a strategic entry point into Europe and Croatia benefiting from Chinese investment and trade. The focus of this economic relationship spans trade, direct investments, and cooperative projects under the Belt and Road Initiative.
Bilateral Trade Volume and Growth
- Steady Growth in Trade: Bilateral trade between China and Croatia has steadily increased since the early 2000s, particularly following Croatia’s accession to the EU in 2013. While Croatia’s relatively small economy limits the scale of trade, China’s interest in the region and Croatia’s strategic location have kept trade volumes growing.
- Trade Volume Figures: As of recent years, bilateral trade between China and Croatia is estimated to be around $1 billion annually, with steady growth year-over-year. This trade includes a mix of goods and services, reflecting the strengths of each country in different sectors.
Major Imports and Exports
- China’s Exports to Croatia: China’s exports to Croatia primarily include machinery, electronics, textiles, and consumer goods. Given Croatia’s reliance on imported industrial machinery, China has become a significant supplier, providing essential equipment that supports Croatian manufacturing and construction.
- Croatia’s Exports to China: Croatia exports a variety of products to China, including pharmaceuticals, wine, olive oil, and other high-quality agricultural goods. As China’s middle class grows, so does its demand for premium European products, which has led to increased Croatian exports of niche products like wines and olive oils that appeal to Chinese consumers.
Investment Flows and Key Projects
- Chinese Investments in Croatia: Chinese investments in Croatia are largely concentrated in infrastructure, tourism, and energy. China’s involvement in infrastructure projects is part of its broader BRI strategy, positioning Croatia as an essential partner in its European expansion.
- Peljesac Bridge Project: One of the most significant infrastructure investments is the construction of the Peljesac Bridge, financed largely by the China Road and Bridge Corporation. This project, aimed at connecting southern Croatia with the rest of the country, is a symbol of China’s commitment to Croatian development and its broader goals within the BRI.
- Tourism and Hospitality: Chinese investors have shown interest in Croatia’s tourism sector, as Chinese tourism to Croatia has been on the rise. Several Chinese companies are involved in projects related to the hospitality industry, and Croatia has simplified visa processes and increased flight routes to attract more Chinese tourists.
Economic Cooperation Agreements
- Belt and Road Initiative (BRI): Croatia is a participant in China’s Belt and Road Initiative, which aims to improve connectivity between Asia and Europe. By joining the BRI, Croatia has positioned itself as a critical link for Chinese exports into Europe and has received funding for infrastructure projects that enhance its transportation network.
- Tourism Promotion Agreements: Both nations have recognized tourism as a mutually beneficial area of cooperation. China and Croatia have signed agreements to boost tourism, and Croatia has hosted events to promote its cultural heritage to attract Chinese tourists. Additionally, Croatia has implemented simplified visa processes to encourage more Chinese visitors, contributing to the local economy.
- Scientific and Technological Partnerships: In recent years, China and Croatia have expressed interest in collaborating on technological innovation and research initiatives. Memorandums of understanding (MOUs) have been signed to promote technology transfer, support digitalization, and encourage partnerships between research institutions and innovation hubs.
- Trade and Investment Protection Agreements: To ensure that Chinese investors feel secure in Croatia and that Croatian companies have fair access to the Chinese market, the two countries have signed agreements protecting investments and facilitating smoother trade flows. These agreements are periodically reviewed to comply with EU standards, given Croatia’s membership in the EU.
