Introduction

On 13 May 2022, Croatia and China marked the 30th anniversary of the establishment of diplomatic relations and of the development of our partnership, which was strengthened and broadened by Croatia’s membership and activities within the European Union. As the President of the State Council Li Keqiang so illustriously described during his official visit to Croatia in April 2019, Croatia and China are in a “diamond” era of bilateral relations. We confirmed this at the beginning of the pandemic through solidarity and mutual support. While people-to-people contacts have been rare since early 2020 and the anniversary itself was not marked properly in China due to severe pandemic restrictions, there is an underlying confidence that cooperation will take flight with the restart of contacts we have already witnessed in 2023. We are also looking forward to a resumption of high-level bilateral meetings, as these provide strong impetus to further strengthen better mutual understanding and cooperation.

Cooperation between Croatia and China, formally elevated to a comprehensive cooperative partnership since 2005, actually consists of four tracks, with a foundation in bilateral and EU–China relations, complemented by Croatia’s participation in the Belt and Road Initiative and China-Central and Eastern Europe Cooperation. Regardless of their differences in size, economic power, international influence, and geographical distance, our countries share a lot of common points of connection and interests. Apart from our mutual respect and understanding, our cooperation has been growing at an increasing rate, especially in the areas of economy, tourism, science, culture, sports, and people-to-people contacts. The “European Great Wall” is in southern Croatia, around the old city and sea salt works of Ston. There is also evidence that Marco Polo, who travelled the old Silk Road and brought Europe and Asia closer together, was born in the Croatian city and island of the same name, Korčula, which was then a part of the Venetian Republic.

When celebrating important anniversaries, it is customary to reflect on some of the achievements that symbolize the efforts and successes of years past. In this regard, the first and foremost of these is appropriately the Pelješac Bridge, a strategically important project uniting Croatian territory, the completion of which coinciding with the year in which we celebrated 30th anniversary of the establishment of our diplomatic relations, will remain a symbol of the practical cooperation between Croatia, EU and China.

Cooperation: Achievements, Opportunities, and Expectations

Croatia awarded the tender for the construction of its symbolically most important infrastructure project, the Pelješac Bridge, which links two parts of Croatia, and thus two parts of the European Union, to the China Road and Bridge Corporation (CRBC). This project has become not only a testimony of the high level of trust between our countries, but also a way to showcase Chinese building expertise within the EU. The Pelješac Bridge was a pilot project for CRBC in the EU, and it had to adopt EU standards throughout implementation and competition of the project, including those regarding public procurement and use of EU funds. This landmark bridge was officially opened on 26 July 2022, creating a lasting bridge of Croatian–Chinese friendship and a symbol of Croatia-EU–China cooperation. The importance of EU–China cooperation in today’s world was underlined by the message Premier Li Keqiang had delivered on that occasion.

Another flagship project that must be highlighted here, as it is the biggest Chinese investment in Croatia to date, is the construction of Croatia’s largest wind farm near the city of Senj by the Chinese company Norinco International, which was finalized at the end of 2021. The 156-MW wind farm, consisting of thirty-nine 4-MW turbines, stretches over 45 square kilometres and is estimated to be in operation for 23 years, with an annual output of 530 million kWh. This project, which is worth EUR 230 million, is an excellent example of investment and green cooperation between Croatia and China.

I am particularly pleased that some Croatian flagship companies are finding their way into doing business in China, yet I would like to see even more Croatian companies here. By creating a more level playing field and giving Croatian companies similar opportunities to those given to CRBC and Norinco International in Croatia, I believe this can be accomplished to our mutual benefit within the scope of economic cooperation. The global champion in cloud communications platforms, Infobip, and special vehicles producer DOK-ING are developing partnerships with renowned Chinese companies.

Infobip is a global cloud communications platform that enables businesses to build connections across all stages of the customer journey. With over fifteen years of industry experience, Infobip has expanded to 70+ offices across six continents offering natively built technology with the capacity to reach over seven billion mobile devices and “things” in 190+ countries, connected directly to over 700 telecom networks. This includes established operations in Shenzhen, Beijing, Shanghai, and Hangzhou serving the local tech scene, start-ups, and online firms seeking to expand outside mainland China.

DOK-ING and its partner XCMG established a joint venture in 2020, with the intention of entering the humanitarian demining and crisis management market in China using DOK-ING's mature technology. With DOK-ING’s 30 years of R&D and sales experience in the field and XCMG’s production capabilities and market position in China, the cooperation between two parties was a logical step. Since it was founded, this new company has branched out beyond core markets and is currently involved in development of special purpose robots used for rescue, which will further expand both companies’ product portfolios.

There are also two more Croatian-Chinese joint ventures in China that should be highlighted here. The first is the Croatian electrical equipment flagship company Končar, whose subsidiary, Mjerni transformatori d.d. (KMT), established cooperation with TBEA (Shenyang) Transformer Group Co., Ltd. The second is the Croatian electric automobile company Rimac Automobili, which cooperates with the Chinese Camel Group in production of electric batteries. In mentioning visionary electric car developer Mate Rimac, we hope to see Rimac Automobili’s stunning hyper electric car Nevera, which is a force like no other, like the mighty Adriatic summer storm from which it takes its name, designed, engineered, and handcrafted in Croatia, on Chinese roads soon. Mate Rimac established partnership with the Kingsway Group as Rimac Automobili’s official partner in Greater China, with a spectacular showroom in Shanghai.

I would also like to mention the renowned Croatian architectural design studio 3LHD, which is behind the unique philosophy of the LN Garden Hotel located in southern China's Guangdong Province, on the banks of the Pearl River in the Nansha Seaside Park. The architectural concept is based on the idea of four wings oriented towards the main environmental features of the site: the sea, the river, the mountains, and the park. Croatian design, in architecture and furniture, as captured by another Croation firm called Prostoria, is being recognized around the world, and I am pleased to see it entering China.

Croatia also works with Chinese partners to attract more investors from China and diversify their investments. It should be noted that Croatia offers many opportunities for Chinese investors and equal rights equal to those of domestic investors, including various incentives in both public and private projects ranging from infrastructure projects to smaller production-based projects. Being a member of the European Union and NATO, and on the way to the OECD membership, Croatia guarantees stability and the safety of business activities. Croatian legislation, harmonized with European Union law, ensures business activities of the highest standard and offers the possibility of using EU funds. Agreements that avoid double taxation signed with over 50 countries provide investors in Croatia with additional benefits. The Croatian Chamber of Economy has an office in Shanghai, and together with the Embassy in Beijing, it serves as an initial gateway for Chinese companies looking to do business, trade, and investment in Croatia.

According to the Croatian National Bank, total FDI investment from China in the last thirty years was less than EUR 160 million. However, actual numbers are higher, as the investments from Chinese companies have been mostly carried out through European companies, subsidiaries, or branches.

Croatia’s unique geostrategic location makes it a valuable part of the Belt and Road Initiative, as Croatia’s ports shorten shipping from the Far East to Europe by up to seven days compared to northern routes. Furthermore, as part of the EU, Croatia is an entry point to a market of over 500 million people. The Sea port of Rijeka is the largest port in Croatia and accounts for more than 50% of total turnover of all Croatian ports. It is also one of the most important ports linking the Far East and Central Europe with the shortest transit time. Most prominent Chinese companies choose Croatian ports as their entry points or hub centres for Central and Eastern Europe. The modern infrastructure of these ports and their good connections with European countries create numerous opportunities for the development and implementation of investment projects in logistics industry, especially in intermodal transportation, logistics, and distribution centres.

Croatia also has a highly developed road network in addition to its network of key international seaports (Rijeka, Ploče, Šibenik, Zadar, Split, Dubrovnik), river ports (Vukovar, Osijek, Slavonski Brod, and Sisak) and airports (seven international airports include Zagreb, Split, Dubrovnik, Zadar, Rijeka, Pula, and Osijek), as well as inland waterways and intermodal terminals. Its network of modern motorways put Croatia on par with top European countries. Croatia also aims to revitalize its entire railway network, meeting the highest European standards by increasing the capacity of the railway lines as well as the speed of travel and safety, with plans to upgrade as many as 750 km of railway lines between 2020 and 2030, providing opportunities for renowned Chinese companies to participate in public tenders.

Renewables and green transition are certainly one of Croatia’s priorities. The Russian aggression against Ukraine has confirmed that green and digital transition is even more important to increase our overall resilience, which has been a valuable lesson not only for Europe. By further accelerating development of renewables and increasing green investments, diversifying energy sources, putting more emphasis on savings and green transition, we believe we can turn the current situation into a new opportunity for our economies. Croatia is expected to reduce CO2 emissions by 45% by 2030 and stop using coal by 2033, perhaps even sooner. Another goal is to reach 39% of renewables in end consumption by 2030, using the country's own potential in the process; we aim to have more than 65% of renewables and 100% low-carbon in final production. Croatia’s energy development strategy must be based on new and clean technologies, innovation, and research to improve the quality of life and ensure the necessary transformation of the economy. Croatia met 29% of its energy needs through hydropower facilities and wind and solar parks, surpassing the renewable energy targets in the Europe 2020 strategy. Although Croatia has made progress in using its potential for wind energy, solar and solar thermal are still underused compared to the obvious potential in our very sunny country. The estimated technical potential of solar power plants in Croatia is 5303 MW, with an estimated production of 6364 GWh of electrical energy annually. As we can see, incentives for further development of renewable energy resources are abundant, and Chinese companies recognize this investment opportunity.

Trade between Croatia and China has grown steadily (USD 1.54 billion in 2022, according to Croatian statistics), but this is characterized by a significant trade deficit on the Croatian side. Recognizing the potential of China as one of the world's leading economies and markets, Croatia is continuously working to bring more Croatian food and agricultural products to the Chinese market. More and more high-quality Croatian products are succeeding in entering the vast Chinese market, with wine being the most prominent, which can be paired with cheese. However, we would like other products such as tuna, fish, honey, and meat products to follow soon. Chinese citizens already have their Croatian favourites—Podravka’s Vegeta and Linolada—and we hope to present more Croatian food products in the future. From China, Croatia mostly imports special purpose vessels, automatic data processing machines, electric generators and converters, and iron and steel products. Croatia exports mostly processed wood, presses for rubber or plastic product moulding, special purpose motor vehicles, cut marble and travertine, and food preparations for animal feed to China.

Croatia puts great value on the opportunities provided by the framework of the Cooperation between the Central and Eastern European Countries and China, the 10th anniversary of which was marked in 2022. For Croatia, the EU's values, principles, and rules are a paramount framework for operating within this Cooperation. We hope the platform will realize the goals it set out a decade ago and achieve tangible results, particularly in its focal areas of balanced trade and investment, which were highlighted at the last in-person summit held in the crown jewel of Croatian tourism, Dubrovnik, in April 2019. The Croatian Prime Minister publicly praised this Cooperation for the opportunities for high-level political dialogue with Chinese leadership it provides.

The pre-pandemic year of 2019 was particularly significant for our two countries in the tourism sector. Not only it was proclaimed as the Croatian-Chinese Year of Culture and Tourism, but in 2019 Croatia recorded the highest number of Chinese tourists (including mainland China, Hong Kong, Macao, Taiwan). With almost 500,000 arrivals and more than 650,000 overnight stays, this was strong evidence of the enviable trend of positive change in economic relations between two countries. This steady growth created a solid foundation for ultimate introduction of direct flights between China and Croatia, but unfortunately, the arrival of the pandemic postponed this project. Croatia is a popular vacation destination in Europe and the most visited tourist market in the Central and Eastern European region. In terms of its size, Croatia may not be a big country, particularly when compared to China, but it has an attractive location in Europe. Likewise, Croatia boasts a very high quality of life. It is a safe country, with a welcoming population, delicious food, well-preserved natural areas, a mild climate, and abundant historical and tourist attractions.

As the newest European Union member state, Croatia marked the 10th anniversary of its accession on 1 July 2023 and entered 2023 by anchoring itself firmly in the European mainstream, joining the Schengen travel area and the Euro currency zone, which should bring more opportunities for cooperation with China as well as it will make travel and doing business much easier.

The thriving sports cooperation between our two countries should not come as a surprise—Croatian athletes, particularly footballers, are widely known in China, as are Croatia’s trademark red-and-white checkerboard jerseys. Many Chinese people mention the brilliant Luka Modrić wherever I travel around the country. The same goes for the famous pianist Maksim Mrvica, who received wide praise here when he played Croatian Rhapsody. Our cooperation in sports covers not only football, but also basketball, handball, and tennis. Before the pandemic, over a hundred talented young Chinese athletes trained in Croatia annually with their peers. Here, I would like to particularly highlight the longstanding cooperation between the Beijing Sports University and the University of Zagreb, as well as the fact that Croatia is in charge of coordinating mechanism for summer sports within CEEC-China Cooperation.

We have also increased the frequency of bilateral relations at the local level—contacts and exchange between our provinces and cities flourish. Relations at the local level have been long term: the Croatian capital city Zagreb marked the 40th anniversary of its sister city relationship with Shanghai and the 25th anniversary of partner relations with Beijing in 2020. Other cities and provinces that have developed partnerships include Rijeka, Split, Dubrovnik, Opatija, Varaždin, Primorje-Gorski Kotar County, Osijek-Baranja County, Zadar County, Lika-Senj County, and Vukovar-Srijem County, which are linked to Chinese partner cities including Dalian, Qingdao, Ningbo, Xi'an, Hangzhou, Harbin, Liaoning, Hainan, Sichuan, Qinghai, Hebei, and Henan, just to name a few.

I would like to emphasize the continuous and fruitful cooperation between Croatia and China in protecting fragile biodiversity within our flagship national parks (Plitvice Lakes and Jiuzhaigou, Krka and Huanglong). Thanks to the longstanding cooperation between the Faculty of Science of the University of Zagreb and the Chengdu Institute of Biology of the Chinese Academy of Science, a joint laboratory on biodiversity and ecosystem services was awarded within the Belt and Road Initiative.

Conclusion

Anniversaries of diplomatic relations offer a symbolic opportunity to express gratitude to all those who have contributed to the deepening of friendly relations between our two countries as well as to reflect on future prospects. While building on our successes in the first 30 years of our diplomatic relations, it is with optimistic anticipation that we look forward to expanding the spectrum of our bilateral interests and using opportunities to unify our efforts in addressing global challenges, Croatia, EU, and China together.

With the strong partnership relations, increasing investment and enviable advances in increasing Chinese tourist arrivals, which we have begun to witness again after the pandemic, we can truly say that the future is bright for further development of our mutual relations in all aspects. Croatia attaches great importance to furthering cooperation with China in all spheres of mutual interest. As I often say, we owe it to the legacy of Marco Polo, whose family is believed to have come from the Croatian island of Korčula, to strengthen our cooperation and bonds. To once again return to Premier Li’s assessment, diamonds are not only sparkling and valuable, but also strong, just like the Croatian-Chinese friendship and partnership.

For Croatia as an EU member state, enhanced cooperation between the European Union and China on global issues, such as global peace and security, climate change, development assistance, and energy issues are of the utmost importance. Our world has changed dramatically, and in these new circumstances, there is no alternative but to increase international cooperation based in the established tenets of the rules-based international order, buttressed by the global institutions centred in the United Nations system and the corpus of international law. Unjustified Russian aggression against Ukraine reminds us of the importance of preserving this order and demands a responsible response from everyone in the international community, particularly from the permanent members of the Security Council of the United Nations, calling for the respect of sovereignty and territorial integrity of Ukraine, and bringing about a just peace, with all the atrocities condemned and perpetrators brought to justice—might cannot be allowed to be right and obsolete concepts of spheres of influence should be banished to history.