From the construction of Pelješac bridge to planning to build a car factory in southern Dalmatia’s Neretva valley, to displaying interest in potentially rescuing the enfeebled Croatian shipyards Uljanik and 3 Maj, the Chinese are no strangers to showcasing their investment interest in Croatia.
Croatia has earned itself a less than positive reputation among foreign investors, alright, let’s not be so politially correct and say that Croatia is a burning hot mess in the eyes of foreign investors. ABC has come to mean ”Anything but Croatia” in foreign investment circles, and many are simply bypassing the country entirely. That’s not to talk about local, Croatian investors who have been dragged through the proverbial mud twice or even thrice the amount. Given the somewhat depressing statistics, just why are the Chinese suddenly so deeply interested in investing such huge sums of money in Croatia?
While many have welcomed the money-laden offers of the Chinese, others have remained cautiously optimistic, and some have made no qualms about being vocal in their dismay at the thought of the Chinese coming and ”taking over” by investing heavily in Croatia’s many pressing strategic projects. The motives that push the Chinese towards closer and closer ties with Croatia tend to end up as mere hearsay and solacious gossip in the comment sections of various portals, but what do the experts believe?
As Novac/Marina Karlovic Sabolic writes on the 12th of April, 2019, the Chinese are truly incredible people. They come to Croatia every ten years, and the Croats immediately forget about all of the Chinese “bofl” goods they’ve spent their lives purchasing and throwing away. They suddenly become blissfully unaware of the dreaded “Made in China” mark that everyone gets so sick to the back teeth of seeing plastered all over basically anything. Instead, their innermost desires display blurry images of an ailing Uljanik, of Tito’s rotting memorial complex in Kumrovec, of Rijeka’s port, and even football stadiums, Slobodna Dalmacija writes.
Does anybody bother to ask in this country what the Chinese will ask for in return, however? Entering into the dubious and somewhat unpredictable world of Croatian shipbuilding, constructing a much needed railway line and maybe rescuing a port in Rijeka all before dinner time will come with a price tag, and likely a hefty one. The situation when that bill inevitably arrives is one that tends to be what fills the militant online naysayers with fuel, and dread.
”Don’t be afraid, China will not demand that the Communist Party be established in Croatia or that it rules the country,” prof. Dr. Vlatko Cvrtila, one of the most prominent Croatian geopolitical experts, stated. He also added that in its long-term strategic plans, China really doesn’t have any sort of idea of introducing a single-party system in the countries in which it invests its money. Their interest, claims Cvrtila, is of quite another nature.
”The Chinese don’t invest because they have a lot of money and they want to go around giving it out. There’s no philanthropy in international relations. All they invest in is related to their global strategy of creating influence and linking the Eurasian world in a continental way. By investing in infrastructure, ports, roads and railways, they enable their goods to reach their customers more easily,” says Cvrtila.
Such an approach, he points out, is legitimate for a country that has boasts such great economic potential at this time like China does. Their mega-project, the Silk Road, which would increase the possibility of land transport, aims to reduce overall dependence on maritime traffic restrictions.
Cvrtila notes the US administration’s estimates and warnings that China will one day turn its massive economic influence into strategic power as well. This is something that United States, which is already competing with Russia, doesn’t think well of. However, China is now quietly placing all of its cards on the economic side of the story.
”In order to maintain its economic growth, China must have a market. In infrastructure projects, they actually make the market more widespread. China can’t stop, while it’s riding the bike it needs to rotate the pedals. The Chinese are present everywhere where they can create prerequisites for the distribution of goods. In Greece, they’re in the ports, in Montenegro, they’re dealing with the construction of a motorway, in Croatia, they’re building Pelješac bridge. This is a win win situation for everyone, because in the long run, any investment in infrastructure can improve a country’s economic performance,” says Cvrtila.
China has, therefore, created the 1 + 16 formet in Southeastern Europe where its usually large-scale investments help countries that otherwise don’t have a lot of foreign investment.
”Europe has survived a difficult financial crisis and there is no “free finance” which would enter JI Europe. China’s investment is actually beneficial for Europe, because along with China, the European Union has developed non-competitive but increasingly strategic economic relations, realising in time that they [the Chinese] can contribute to its economic growth,” emphasises Cvrtila.
Croatia, according to him, is fortunate because it is strategically quite well positioned: it is closer to the heart of Europe than it is to Northern Europe. And, de facto, it is located at the intersection of the roads between the East and the West.
Unfortunately, Croatia hasn’t used its geostrategic advantage yet. LNG terminal stands, as do the new train lines. It’s also important to revitalise the Port of Rijeka so that Croatia can profit in the fast transport of goods to European consumers. We don’t have our own investments, Europe has no capacity anymore, which is why the Croatian Government is seriously considering deals from China,” concludes Cvrtila.
Therefore, there’s no need for Croatia to be afraid of the Chinese, but rather actually use them for its own interests.
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Click here for the original article by Marina Karlovic Sabolic for Novac/Jutarnji
