Dragica Vucinic

Ever since the earliest period people have sought to find new markets to improve their economy. Established already in the first century AD, the often interrupted “Silk Road” is something you first think of, when you mention: trade, cultural and diplomatic exchanges between China and the European countries. Even in ancient times there were connections between China and Europe. Those connections were based on the exchange of merchandise, they also enabled the diplomatic contacts and, as well, contributed to knowledge about other cultures.

The volume of the trade exchange between China and Montenegro in recent years has been steadily rising.

During the ten months of the year 2013, Montenegro and China have exchanged goods in the amount of 125,8 million euros. Of these, exports of 2.1 million makes 0.7 % of the total Montenegrin exports and is reduced to 19.2 % ,while imports of 123.7 million makes 8.3 % of the total Montenegrin imports and is enlarged up to 10,2% compared to the same period last year.

On the list of the most common product groups in the structure of imports from China are electrical machines, equipment and fitting parts (24.6 million euros), ships, boats (21.3 mill. Euro), machinery and mechanical appliances (19.7 million euros), while the most represented export products: ores, slag and ash, which make up to 85.7 % of exports.

Direct investments from China have so far been negligible, in total 6.8 million € for the period from 2006 to June 2013. Until 2006 there were no investments at all, while in 2009 there were the largest investments – up to 2.5 million €.

As far as imports of goods, China is in second place just behind Serbia with 127 milion euros.

Montenegro can not offer China a huge market for placement of products.

However, Montenegro can offer a strategic location for the entry of Chinese goods to Central and Eastern Europe. - 16 countries with which China has established merchandise trade in ten months of this year in the amount of 45.5 billion Dollars and a leading position in the Western Balkans which for years has built good neighborly policy towards the rest of the region.

So, with 650,000 inhabitants Montenegro can not be a significant market for one of the world's largest economies such as China (For example: the former Yugoslavia with 20 million inhabitants is 3% of the total market of the European Union). But the geo - political position of Montenegro with ports and airports puts us in an equal position with other countries in Eastern and Central Europe in terms of placement of Chinese products to the markets of Southeast and Central Europe.

Also note that the Government of Montenegro has already recognized the importance of the Cooperation between China and Montenegro. This cooperation has been concretized by assignment of large state projects to Chinese companies and consortiums for realization.

Montenegrin Chamber of Commerce also emphasizes the significance of Chinese companies and their presence in the Montenegrin market. In Montenegro, there is also a "Society of Friendship between the People's Republic of China and Montenegro " which contributes to a better environment in the work of Chinese companies in Montenegro, And a significant increase of young people in the few last years which are going for educational reasons to China has been noticed as well.