As Morski writes on the 21st of January, 2020, the Chinese were introduced into the construction of the long awaited Peljesac bridge back at the end of July 2018, and the total value of the works carried out so far, according to Croatian Roads (Hrvatske ceste), stands at 619.9 million kuna.

This means that more than a third of the planned works have already been done on the future bridge in Dalmatia, since the total contracted price of its construction is 2.08 billion kuna, according to a report from Vecernji list.

China Road and Bridge Corporation (CRBC), the Chinese company contracted to build Peljesac bridge, has committed to construct the bridge within three years of the launch of the works, which means by the end of July 2021. The first contingent of segments of the steel span structure of Peljesac bridge will apparently start moving from two plants in China over to Croatia at the end of this week.

Croatian Roads says they have received confirmation from CRBC that the first 29 segments of the span structure will head to the construction site of the bridge on January the 25th, on Chinese New Year. It is foreseen that ships with construction material will travel to Croatia for a maximum of 35 days, but it is expected that they will arrive at the construction site as soon as possible. Thus, it is anticipated that the first segments of the span structure will be delivered during the second half of February.

There are currently 629 workers at the Peljesac bridge construction site, of which 132 are technical and support staff, and the rest are machinists and sailors on board ships, as well as machinery. Currently, 21 vessels are being used for the construction of the bridge, namely cranes, barges for the carriage of structural members, ferries, tugboats and of course personnel ships carrying staff members.

As for the construction of access roads, more specifically the Duboka - Sparagovici/Zaradeze section, the contractor of which is Austria's Strabag, things finally got moving on the 13th of November 2019. According to Croatian Roads, the project documentation, location and building permit have all been formally submitted to the contractor, and they have submitted the timetable for the work under review for approval. By the end of December 2019, Strabag had begun organising construction sites, clearing the routes and will begin with more serious construction work this month.

Greece's Avax, however, got the green light for the construction of the Ston bypass, the Sparagovici/Zaradeze - Prapratno and Prapratno - Doli subdivisions, and it was put into operation on the 5th of December last year. Avax has also officially submitted project documentation, location and building permits, and the company has submitted a timetable for the works, which is currently under review by representatives of engineers and Croatian Roads. Avax started organising the construction site by the end of December 2019, and this month they'll also begin with preparatory work.

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As Poslovni Dnevnik writes on the 18th of December, 2019, the spacer assembly, or the main load-bearing beam, is composed of elements that are made up of welded steel sheets. These parts will soon arrive from China to Croatia and mark the continuation of the next level of works on Peljesac bridge in Dalmatia.

The first segment of steel span structure for Peljesac bridge has now been fully completed at the plants over in China, and this is something that Peljesac bridge's Chinese builders have commemorated, as can be seen in a short video posted by Croatian Roads (Hrvatske ceste).

About 400 segments of the future bridge's steel span structure will be brought in by ships from China, some parts will be six metres long and some will be twelve metres long.

The first thirty segments from China will be well on their way to the Republic of Croatia, as was reported by Večernji list, who say that Croatian Roads (Hrvatske ceste) are expecting them to arrive in mid-January next year, and they are expected to arrive at Peljesac bridge's actual construction site in late January or early February 2020. Their total weight is an enormous 6,831 tonnes.

As stated previously, the spacer assembly, or main load-bearing beam, is composed of elements that are made up of welded steel sheets. The parts of individual segments of the bridge are assembled at the factory and then transported to the construction site.

The size of the parts that can be assembled at the factory depends on the ability to transport them to the construction site where they will be assembled as a whole to be installed at the final location, within the structure of Peljesac bridge, a long awaited and strategic project for the Republic of Croatia and for the connecting of the territory of the European Union.

Watch the short video video below:

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As Poslovni Dnevnik/Marija Brnic writes on the 5th of November, 2019, the opening ceremony of the Chinese International Import Fair, which is being held for the second time in Shanghai in order to increase imports and reduce trade surplus, has featured four companies from Croatia, with a total of twelve more Croatian businessmen attending the Croatian-Chinese Business Forum.

The forum has been organised by the Croatian Chamber of Commerce (HGK), and in addition to presenting Croatia's economic and investment potential, more than thirty Chinese companies have expressed interest in concrete business talks with Croatian entrepreneurs. Among the companies whose representatives have travelled to Shanghai, some are already successfully operating on that huge market, but small, little-known companies are also testing the ground.

Pan Parket, Podravka, Zdenka, Inovatus Services, Adiratic health & care travel agency, Exotrade Rijeka, Education Travel Worldwide, Foto revija, Milena, and even the agricultural cooperative Gospoja iz Vrbnika and AMPnet IO and Intereuropa Global are looking for new opportunities in this populous country.

This year, the fair brought together around 150 countries and regions, as well as international organisations, with nearly 4,000 companies presenting themselves on a staggering 400,000 square feet of exhibition space.

The fair was officially opened by Chinese President Xi Jinping, who sent out the message that it is important that there is mutual understanding and that people can connect, while preventing wars, protectionism and unilateralism. According to the organisers, last year, the first Import Fair was effective - 90 percent of the deals were completed, with a contract value of around 52 billion euros in total.

The Croatian Chamber of Commerce, which officially opened its representative office in Shanghai during the last fair, pointed out that Chinese interest in cooperating with companies from Croatia is growing, especially after the 16 + 1/17 + 1 Summit in Dubrovnik. The Croatian Chamber of Commerce also allows companies from Croatia who are interested in doing business in China to use their office space, and so far, they say, about 20 companies have expressed interest.

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Foreign trade chains operating here in Croatia are increasingly promoting Croatian products and businesses, as well as on other markets on which they operate.

As Poslovni Dnevnik/VLM writes on the 6th of June, 2019, last year, large, medium and small Croatian producers exported their products through Spar Croatia to Austria, Hungary, Slovenia and Italy in the amount of 68 million euros, or more than half a billion kuna, and some of them now appear to be eyeing up a far more distant market - the Chinese one.

Spar's hypermarkets in Rijeka, Zagreb and Zadar were visited by a high delegation consisting of some of the leading people of Spar China, from five Chinese provinces, as well as the president of the China's trade and franchise association, Guo Geping.

The products of selected Croatian suppliers such as Vindija, Kraš, Gavrilović, Dukat, Podravka, Badel and others were looked into and considered as being potentially good to export to the Chinese market. Spar is currently present in seven Chinese provinces with more than 350 stores, with an impressive annual turnover of more than 1.5 billion euros.

However, although intensifying cooperation on exports of foodstuffs from Croatia can be expected, this mostly covers pork and processed products, such poultry and fish, Croatia ad China have signed a protocol on the possibility of exporting milk and dairy products from Croatia to China, after the approval of veterinary certificates.

However, previous experience suggests that Croatian producers, small ones operating within the EU or indeed worldwide, find it much easier to ''penetrate'' the world through Croatian or other leading retail chains already operating on particular markets.

''Trade chains such as Spar, Kaufland and Lidl already enjoy good business cooperation with our manufacturers in Croatia. And of course, it's much easier to transfer these relationships to the other markets where they operate,'' said Ante Madir of the Croatian prosciutto cluster.

He pointed out the fact that it's even better to have Croatian ham and other types of cured meats have a chance of promotion in stores and at leading fairs in other countries such as the Parisian SIAL or Berlin's Grüne Woche.

As business relations between Croatia and China continue to grow stronger, perhaps many of Croatia's best loved domestic products asife from dairy, from Kraš and Gavrilović to Podravka, might find themselves sitting proudly on the shelves of well known chain stores in China.

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The Chinese interest in Croatian projects is continually growing, or so it seems, and there is now room to dare when it comes to the potential Chinese rescue of Uljanik and 3 Maj at the eleventh hour.

As Marija Brnic/Poslovni Dnevnik writes on the 2nd of May, 2019, the Chinese CSIC representatives currently visiting Croatia to see the state of Croatia's ailing Uljanik (Pula) and 3 Maj (Rijeka) shipyards have expressed clear interested in new projects with Croatia's shipyards, but only if the Croatian state covers the cost of what has already failed, there have also been mentions of the diversification of production, but they don't want guarantees.

If there is an agreement between the Croatian Government and the Chinese CSIC about reviving Uljanik and 3 Maj, it will be done so with regard to a combination of the models which were discussed with the previous two strategic partners, Darko Končar and Tomislav Debeljak.

According to the explanation given by Minister of Economy Darko Horvat after the final talks and the three-day visit of CSIC's representatives, the Chinese are indeed interested in starting with new projects, while the state should cover the cost of old, failed projects, meaning it will need to take place on a clean slate. It's also more than likely that the sites of today's Croatian shipyards will see other projects developed there, that is to say, the diversification of activities will occur.

"If they don't see the possibility of continuity of shipbuilding at this time, we want other industries to take place here, and not just those exclusively involved in shipbuilding," Minister Horvat stated. Therefore, unlike Danko Končar's initial idea, Chinese diversification would not be a real-estate business, but would involve some sort of other, new production aside from shipbuilding. And the clean starting position the Chinese have indicated that they want, which is similar to what Tomislav Debeljak sought but is unlike his idea, almost certainly means declaring the bankruptcy of the two shipyards.

"We don't expect them to finance failed attempts to build ships that haven't been completed. The starting position means new projects,'' stated Horvat in reference to the wishes of the Chinese.

The continuation of construction in Pula and Rijeka in partnership with CSIC would in any case have a completely different financing philosophy. The Chinese say, after the talks, that they are completely astonished at the reliance of state guarantees for shipbuilding. To repeat what Finance Minister Zdravko Marić stated recently, it's much too early to talk about exactly what changes might occur in this context following their entry into Uljanik and 3 Maj. Over the next few weeks, CSIC's senior people will analyse the collected information and determine whether or not, and indeed in what form they're interested in entering into the structures of Croatia's enfeebled shipyards.

At this moment in time, Darko Horvat has merely announced that any form of Chinese entry would involve a new way of financing, with different sources, a different way of drafting project documentation, and would involve no state guarantees. After the final talks at Zagreb Airport, Horvat didn't provide any more specific information, nor the deadlines within which he expected to receive feedback from the Chinese, but he did appear to try to leave the impression that he was optimistic about the whole situation. The Chinese representatives themselves, however, didn't give any media statements.

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Click here for the original article by Marija Brnic for Poslovni Dnevnik

As Poslovni Dnevnik writes on the 30th of April, 2019, Croatian Finance Minister Zdravko Marić said on Tuesday that he still needs to see if there really is specific interest from the Chinese shipbuilding company, whose representatives are visiting the ailing shipyards in Pula (Uljanik) and Rijeka (3 Maj), saying that it's too early to be able to say anything and that we "need to be completely realistic".

When aked by a journalist about the expectations of the Croatian Government, given that a delegation from the Chinese shipbuilding company China Shipbuilding Industry Corporation (CSIC) has visited the Uljanik and 3 Maj shipyards, Marić said that first of all, we should be realistic and after CISC's representatives get a proper look at the state of affairs with those shipyards and answers to the questions they are interested in, we will need to wait and see what their response to all of it will be.

At this point, it's still too early for that, he added, recalling yesterday's introductory meeting between the Croatian prime minister, his ministers and the aforementioned Chinese delegation at Banski Dvori in Zagreb, where everything was transparent and very clearly presented.

"A really high level team from the perspective of that company has arrived, but on the other hand, we need to be completely realistic. So, today they will spend all day in both Rijeka and Pula and then after that, of course, we can't expect it immediately but within a reasonable time frame, they'll determine what they saw, state what they think about it, and whether or not there is a certain level of interest,'' said Marić when answering journalists' questions after attending the annual European Investment Bank (EIB) press conference.

The CSIC delegation, headed by Hu Wenming, arrived at the enfeebled Uljanik on Tuesday morning, where talks with the members of Uljanik's management board and its supervisory board took place. Assistant Minister of Economy Zvonimir Novak has also been participating in these talks.

Several representatives of the aforementioned Chinese company arrived at Uljanik as early as Monday afternoon, where they viewed the plants and made an unofficial assessment of the capabilities of the Pula shipyard's production facilities, ie, they got better acquainted with its technical capabilities, the processes that take place there, the technology and its general capacities.

What will coe of the visit is anyone's guess so far, but despite suspicion from some, an injection of Chinese money could truly be Uljanik's very last hope.

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If the China Shipbuilding Industry Corporation (CSIC) gives up, it will be difficult to find another candidate for the ailing Croatian shipyards Uljanik (Pula) and 3 Maj (Rijeka) which is in the shipbuilding industry and is also a strong and respected player. Could a Chinese investment be on the cards?

As Poslovni Dnevnik/Suzana Varosanec writes on the 29th of April, 2019, after yesterday's meeting with Prime Minister Andrey Plenkovic and his government ministers, Hu Wenming, Chairman of the Board of China's largest shipbuilding company China Shipbuilding Industry Corporation (CSIC) confirmed that they are indeed moving towards serious consideration regarding the enfeebled Uljanik and 3 Maj shipyards, which have undergone months of turmoil.

''The prime minister gave us a very serious and detailed presentation of the whole situation,'' Wenming said, adding that they saw that these two shipyards were a very important topic for the Croatian public. "Not only did we bring people from our company - they're in charge of planning, we've already called on lawyers and investment banks, so we will outline what their views on the matter are after visiting the shipyards," Wenming stated.

With that, a key ''tour'' begins, because if CSIC ends up actually not being interested in putting its money into the situation, it will be a hugely difficult task to find another candidate in shipbuilding, which is a big player and has an interest in joining the European shipbuilding industry. Otherwise, this would be the first case of a Chinese takeover of a foreign shipbuilding company, so it is speculated that extensive calculations are being made, and of course whether they even want to have their first European shipyard is being considered. The CSIC is looking at the situation deeply and from all possible angles.

This event all began with the recent announcement of the arrival of the CSIC in Croatia with the aim of visiting the troubled shipyards in Pula and Rijeka. As was then announced, the CSIC chairman contacted Chinese Prime Minister Li Keqiang during his stay in the Republic of Croatia where he attended the summit "16 + 1" and after talking with the Croatian PM about the dire state of Croatian shipbuilding.

As things currently stand, the general belief is that the Chinese decision won't take long to come - it will be a simple and express "no" or "yes", while the third option, more specifically an unconditional "yes", will likely need to be waited for a little longer.

What the outcome of the potential Chinese presence in the Croatian shipbuilding industry is anyone's guess, and while some remain very suspicious of Chinese motives in Croatia in general, despite them already working on the long-awaited Pelješac bridge down in southern Dalmatia, whatever comes of their potential entry has got to be better than the current situation, especially for Uljanik.

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Click here for the original article by Suzana Varosanec for Poslovni Dnevnik

There has been much talk, both positive and negative, about the potential for Chinese investment in Croatia. They're already building the long awaited Peljesac bridge down in Dalmatia and have since expressed great interest in the Port of Rijeka and in constructing a railway line linking Rijeka to Karlovac. 

Many believe that the apparently huge interest of the Chinese (and their money) is a bad omen, and that Croatia will end up trapped by yet more debt it can't pay off in the end. Others see it as a welcome move, despite their suspicions. Whatever the truth behind China's interest in Croatia is, the EU aren't too pleased with it, especially in the case of Peljesac bridge. Peljesac bridge is one of the most important strategic projects in the history of the country, and it has been financed mainly by European Union funds, the fact that a Chinese company has been chosen to construct it hasn't filled the European Union, nor the Commission, with much joy.

What will be the situation with one of Croatia's most pressing issues of late, its ailing shipyards? As Uljanik's dire situation continues to worsen, could the already suggested investment from China be its saviour at the eleventh hour? Maybe.

As Poslovni Dnevnik writes on the 29th of April, 2019, a delegation from China's largest shipbuilding company, China Shipbuilding Industry Corporation, headed by Hu Wenming, the head of the company, will arrive in Zagreb on Monday, as N1 reports.

The Chinese delegation will first be welcomed by Prime Minister Andrej Plenkovic and his government ministers at Banski dvori in the heart of the capital city. After exchanging all of the usual diplomatic pleasantries, they will discuss the burdensome issue of Uljanik (Pula) and 3 Maj (Rijeka), which the Chinese guests will visit on Tuesday.

At today's meeting between the Croatian premier and the Chinese delegation from CSIC, the bosses of Uljanik and 3 Maj, Emil Bulić and Edi Kučan, will present, as was confirmed to N1 by the Croatian Government.

Will the giant Chinese company actually agree to invest in Croatia's ailing shipyards, however? The answer to this question could be known definitively in as little as ten days, Economy Minister Darko Horvat announced last week.

Concerning the potential interest of the Chinese for the Uljanik and 3 Maj shipyards, Minister Tolušić said that this really is "probably the last chance to do something." If there is any possibility whatsoever that the Chinese will enter into some sort of investment arrangement to rescue the shipyards, they'll enter. If there's no possibility, they won't. We'll leave it up to them.'' stated Horvat.

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Next week, a delegation of eighteen people from the largest Chinese shipyard, the China Shipbuilding Industry Corporation, are set to visit Croatia's ailing Uljanik.

As Poslovni Dnevnik writes on the 26th of April, 2019, this is the second day is the National Economy and Entrepreneurship Consulting conference, organised by the Ministry of Economy and Entrepreneurship in Vodice. Economy Minister Darko Horvat told N1 televizija that the Republic of Croatia ''wants to become a country of investment and development, even if it isn't there yet".

"What I do dare to say, and with full certainty, is that Croatia has an innovative network, we have to make every effort to create positive trends, but we can't expect a big boom in just one or two intensive years, but the trends are changing. What makes me happy is that our own accumulation which has been earned by entrepreneurs is slowly returning back into circulation, that this money is no longer sitting in banks, in accounts. This gives us the encouragement that we'll gain that momentum this year, too,'' Darko Horvat stated.

How much have the problems with Uljanik slowed the economy down?

"They stopped any acceleration. Given the fact that so far, we've spent nearly three and a half billion kuna on guarantees,'' Horvat said.

The Dredging and Maritime Management company, owned by the Jan De Nul Group, requires Uljanik to refund all advance payments plus interest on a dredger which is being built in the Pula shipyard, whereby a refund of part of the advance has been secured by state guarantees. Such an outcome could cost the Croatian state almost one billion kuna.

"The contracted period is seven days, but I'm not sure that will happen in that time because Uljanik has no liquid funds and we'll have to continue talks and negotiations with Jan De Nul. And Mr. De Nul is aware that these talks end up going nowhere if he decides on the forcible charging of advances, he's aware that the shipyard in Pula isn't ready to complete that vessel. 

If the Chinese do decide to invest in Uljanik, then there are two variants, Horvat said: "to enter as a strategic partner, or to buy one shipyard, and the other, and become the 100 percent owners."

The court decision in Pazin has, for the third time, postponed the bankruptcy hearing for Uljanik. 

"Regardless of the court's decision, we'll continue talking with the Chinese," Horvat said.

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Just how important is Croatia on the Chinese investment map?

As Iva Grubisa/Novac writes on the 21st of April, 2019 China's investment in European Union countries has grown steadily over the past ten years, and the European Commission (EC) has recently referred quite openly to the Chinese as a "systemic rival" and "a strategic competitor," the BBC reports.

The European Union has thus introduced a new mechanism for the strict overseeing of foreign investment, in order to promptly react should they assess that foreign investment could harm the security of EU member states.

According to the EC's report, a third of total EU assets are in the hands of foreign companies and 9.5 percent of companies in the EU have owners based in China, Hong Kong or Macau. When compared with 2007, when this share was only 2.5 percent, it's a significant increase, although the share of European business in Chinese hands is still relatively small. By comparison, back at the end of 2016, 29 percent of EU companies were controlled by Americans and Canadians.

Chinese investment in Europe reached its peak back in 2016, when it amounted to an enormous 37.2 billion euros, followed by a visible slowdown.

"This is mainly a result of stricter control over Chinese capital, but also changes in the global political climate when it comes to China's investments,'' explained Agatha Kratz of the Rhodium Group for the BBC.

Just where are the Chinese investing the most? Although a recent visit by a large Chinese delegation has been accompanied the news of the growth of Chinese investment and ambitions here in Croatia, according to the Rhodium Group, the Republic of Croatia is not even in the top ten countries in which China is the biggest investor in terms of capital.

Between 2000 and 2018, most Chinese investments took place in the largest European economies, such as the United Kingdom, Germany, Italy, and France. The top ten were ranked in the Netherlands, Finland, Sweden, Portugal, Spain, and Ireland.

According to Bloomberg's survey last year, they have owned or used to own shares in four European airports, six naval ports, and as many as thirteen football clubs.

Nevertheless, one must not forget the new big Chinese project, the Silk Road, known as the "One Belt, One Way" Initiative, in which the Chinese plan large investments in European infrastructure to strengthen trade links between China and Europe. Croatia is along that ''road'', and therefore the Chinese are investing in Rijeka Port, the Rijeka-Karlovac railway, mentions of investments in Croatian airports have been floating around, and there's almost no need to mention the fact that the Chinese are building Peljesac bridge, although its cost is mostly paid for by European Union funds.

The Chinese are also investing in Croatia's neighbouring countries, building roads and railways in Serbia, Bosnia and Herzegovina, and even in Northern Macedonia. In addition, Montenegro, as Novac.hr reported earlier this week, provided part of its state territory as a guarantee for the repayment of credits for the construction of part of the Bar-Boljari motorway to the Chinese Exim bank.

Since Montenegro has less of a chance of repaying this loan, it's not an entirely unbelievable option to remain without part of the state's territory, as bizarre as it might sound at first, and in that context, it's possible to understand some Croatian fears about entering into partnerships with the Chinese. This example is often cited as a warning to European countries to be extremely cautious when concluding economic agreements with China, to make sure they don't eventually fall into becoming a slave to the debts.

Trump's administration is much more closed to Chinese investment activities in the United States, and the authorities of other non-EU countries are much more cautious in entering into such partnerships, especially in the areas of telecommunications and defense. In any case, positively or negatively, China is certainly an extremely important player in Europe.

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Click here for the original article by Iva Grubisa for Novac/Jutarnji