The year 2023 will mark the 20th anniversary of the establishment of a comprehensive strategic partnership between China and the EU. Over the past 20 years, the scale and quality of economic and trade exchanges between China and the EU have continued to expand, trade volume has increased by nearly nine times, EU investment in China has increased by nearly three times, China’s investment in the EU has grown from zero to hundreds of billions of dollars, and China and the EU have formed a strong economic symbiosis. Bosnia and Herzegovina is located in the hinterland of Central and Eastern Europe and is regarded as the “backyard” of the EU. China and Bosnia and Herzegovina have strong complementarities in trade and investment. In 2022, China’s bilateral trade with Bosnia and Herzegovina will amount to $310 million, an increase of 12.2% year-on-year.
Regarding the advantages of Bosnia and Herzegovina for Chinese enterprises that want to go abroad, Dai Jun Yang, Vice President of China Association for European Economic and Technical Cooperation (CEETC), believes that it is mainly in seven aspects: geographic location, transportation, operating costs, natural resources, investment environment, market potential and tourism. As a market potential country with multi-ethnic and multi-cultural background, Bosnia and Herzegovina has developed transportation network, relatively low labor cost, relatively friendly tax and legal environment, rich natural resources such as coal, iron ore, aluminum, hydroelectricity and other landscapes and humanities such as Adriatic coast, and is willing to provide preferential policies and supportive measures for foreign enterprises, which are all great advantages for Chinese enterprises.
In the face of the current obstacles to trade between China and Europe, Dai Jun Yang said, “At present, trade between China and Europe does face some obstacles, mainly market access barriers, trade protectionist tendencies, technical barriers and cultural differences. However, these obstacles can be overcome by actively adjusting policies, strengthening cooperation and communication, and promoting reform and innovation. Both sides can work together to establish a more open, fair and stable trade environment and realize a mutually beneficial and win-win situation.”
For Chinese enterprises going to Europe, his suggestion is that Chinese enterprises should do sufficient market research before entering the European market to understand the needs of the target market, competition, business environment and cultural differences, etc., and timely understand and comply with local laws and regulations including trade policies, intellectual property rights protection, labor regulations, etc., and pay attention to the local tax policies and compliance requirements to ensure that they conduct business under the premise of lawful compliance, and implement the localization strategy.
He noted, “It is important to work with a reliable local partner. Partners can provide local market understanding channels, resources and networks to help companies better adapt to the local environment and drive business development. Cooperation with the local government and industry can provide Chinese companies with more support and resources in the European market. By participating in local chambers of commerce, industry associations and business activities, Chinese companies can establish contacts with local governments and industries, and gain more business and cooperation opportunities.”
In conclusion, Dai Jun Yang emphasized that brand image and social responsibility awareness are very important in the European market. Chinese enterprises should focus on brand building, improve the quality and image of their products and services to attract the attention and recognition of local consumers, and actively pay attention to environmental protection, social responsibility and corporate ethics, and participate in local sustainable development projects and social welfare activities to establish a good corporate image.