China is among the biggest global importers of all the Western Balkans extractive exports. China’s interest in the region’s extractive and raw materials industries is related to its overall need for certain raw materials as they are crucial in supporting the country’s manufacturing sector, fueling economic growth, and supporting technological advancements across various industries. While exports and investments in the extractive sector do help the local economies, the overreliance on extractive exports from polluting industries, which deplete natural resources and have a low value-added component in the bilateral trade relationship, is a reason for concern. Moreover, some Chinese projects seem to exploit structural weaknesses related to rule of law and good governance, as seen especially in Serbia and Bosnia and Herzegovina.
This Month’s Guest
- Ana Krstinovska, Research Fellow at CHOICE, President at ESTIMA.