MAPPING CHINA'S RISE IN THE WEATERN BALKANS - North Macedonia

Rhetoric about strategic geographic advantage has been plentiful in south-east Europe ever since the fall of the Berlin Wall. Since 1989, elites and citizens in North Macedonia have been attempting to convince themselves that the time has finally come to turn the country’s geopolitical position into a developmental advantage. The violent disintegration of Yugoslavia delayed opportunities to ensure that newly gained independence in the 1990s would enable political and economic development. This process side-lined the region and led to its marginalisation. While numerous countries in south-east Europe moved towards EU and NATO accession, what was previously the Former Yugoslav Republic of Macedonia sought to explore other options for political and economic positioning. Its brief and unsuccessful policy of recognising Taiwan at the end the 1990s not only brought on Beijing’s fury but highlighted the difficulties of anchoring a country in an era of instability and missed opportunities. The sustained interest of Russia and Turkey in the country seemed to provide some compensatory avenues for economic progress. But the geopolitical resurgence of China with its BRI a decade ago generated political excitement and finally seemed to place Skopje in a position in which it could leverage its location. North Macedonia lies along the important southern route of the BRI into Europe, which gave it a chance to turn its geography into an asset.

The cooperation offer of an activist China coincided with the long decade of North Macedonia’s VMRO-DPMNE government, which not only sought to develop relations with non-European powers but also created the type of dominant, non-transparent political system preferred by Beijing. Two major Chinese-funded road infrastructure projects were undertaken between Miladinovci and Stip, and between Kicevo and Ohrid, with the latter yet to be completed. Successive governments have expressed interest in the reconstruction of the Macedonian railway network as part of the BRI-related Piraeus – Budapest corridor, but this project is yet to take off. For over a decade, Chinese firms have expressed interest in developing the country’s hydro-power energy capabilities, which led to it building the Kozjak power plant. This interest in energy is likely to pick up as green energy investments become more prominent.

Meanwhile, Chinese cultural diplomacy is on the rise in North Macedonia. Beijing’s approach has become more direct and focuses more closely on achieving tangible outcomes. For example, it funded and reconstructed a primary school in the municipality of Kisela Voda. The major telecoms firm Huawei is implementing e-education projects as it seeks to expand its presence. China is also interested in acquiring land along the main railway line passing through the country. Chinese firms are supplying double-decker buses and electric trains as they seek to position themselves more favourably in public procurement tenders.

However, a change in government in 2017 and the emergence of China-related corruption scandals altered the political context quite dramatically. The return to power of the Social Democrats saw the government cast aside the previous “friendly third actor” foreign policy  that had dominated until then. The government has since focused its attention on strengthening relations with the European Union and the United States. North Macedonia’s accession to NATO in 2020 also transformed the political context. While the start of EU accession negotiations remains stalled, it has not yet caused political leaders to rethink their pro-European policy, despite the rising geo-political cost of the impasse. Still, if persistent overall geopolitical ambivalence is combined with a more Eurosceptic VMRO cabinet, a renewed emphasis on cooperation with China and other third actors is a distinct possibility. The BRI southern route into Europe remains of significance to Beijing and still requires much improvement and upgrading, which could incentivise closer Chinese ties with North Macedonia. The country has also recently been receiving investments linked to the green energy transition and China is poised to make an entry as well. Skopje could also be among the winners from China’s decision to refocus its “16 plus 1” engagement format on the Western Balkans, as EU member states in south-east Europe become increasingly worried about the framework. Beijing has also announced its intention to pursue SME cooperation in the context of the BRI. This means North Macedonia is poised to attract greater business attention from China.

ECONOMY & BUSINESS

Investment

There are two major China-related projects in North Macedonia, which are the construction of two highway sections: Miladinovtzi–Shtip and Kichevo–Ohrid. These are funded by loans from Chinese banks and are being implemented by Chinese firm Sinohydro. The initial loan amount of $561 million has risen to $772 million, as the second section is still to be completed.

Trade

Within its competencies, the Customs Administration of the Republic of Northern Macedonia has been cooperating with the General Customs Administration of the People’s Republic of China for a long time. This administrative cooperation sees both parties united in the fight against customs fraud in accordance with the Agreement on Cooperation in Customs Affairs between the Government of the People’s Republic of China and the Executive Council of Socialist Federal Republic of Yugoslavia, concluded in Belgrade on 23 January 1989. Given the role of customs authorities in the field of trade facilitation, border protection and population security, as well as the fight against illicit trade and customs fraud, cooperation between customs authorities increases efficiency and fulfilment of legally prescribed competencies.

The conclusion of the Initiative for cooperation of the People’s Republic of China with the countries of central and eastern Europe (“16+1”) is of particular importance. This grouping aims to intensify and expand cooperation that will enable global connectivity of companies and accelerated economic development of countries.

In this regard, the signed Framework Agreement for cooperation and facilitation of customs clearance between the customs of Northern Macedonia, China, Hungary, and Serbia in 2014 is of particular importance. The purpose of this agreement is to facilitate and expedite customs procedures and formalities for operators that apply customs regulations consistently, i.e. to direct control to those economic operators that are risky in conducting customs procedures based on information obtained nationally or through exchange of information. The Framework Agreement for Cooperation and Facilitation of Customs Clearance has made a great contribution to the development of regional and international trade and is a prerequisite for creating a positive economic climate for attracting foreign investment and economic development and prosperity.

Joint cooperation and mutual exchange of information, experiences, and best practice with the People’s Republic of China significantly contributes to the harmonisation of customs procedures, and  the improvement of cross-border trade in goods. This helps it achieve of the objectives of the World Customs Organization and the Trade Facilitation Treaty.

POLITICS

Cooperation of China with political parties, agreements, visits, exchanges.

Meetings at the level of Heads of State

• Between 21-24 October 2013, the Macedonian president, Gjorge Ivanov, paid a working visit to China and met with the Chinese president, Xi Jinping.
• At the invitation of the Chinese president, Hu Jintao, the Macedonian president, Branko Crvenkovski, made an official visit to China between 4-9 December 2007.
• At the invitation of the Chinese president, Jiang Xemin, the Macedonian president, Boris Trajkovski, made an official visit to China between 25-30 April 2002.
• At the invitation of the Chinese president, Jiang Xemin, the first post-independence Macedonian president, Kiro Gligorov, made an official visit to China between 13-16 June 1997.

Meetings at the level of heads of government

• Between 3-5 July 2014, a high-level government delegation, led by the North Macedonian prime minister, Nikola Gruevski, visited China. Business forums took place in Guangzhou and Hong Kong during the visit.    
• Between 30 June-4 July 2013, the prime minister, Nikola Gruevski, paid a working visit to China, during which he met with the Chinese president, Xi Jinping, and the prime minister, Li Keqiang;
• Within the visit to the PRC from 13-18 May 2012, Macedonian prime minister Nikola Gruevski met with Chinese premier Wen Jiabao;
• Between 28-30 March 2012, the vice-president of the State Council of the People’s Republic of China, Hui Liangyu, paid a working visit to Macedonia as part of a high-level Chinese delegation.
• Meetings at the level of Heads of Government within the Summit of Heads of Government of the central and eastern European countries and China (“17+1”):

• On 12 April 2019, on the sidelines of the 17+1 Summit of Heads of Government and States of the CEE countries in Dubrovnik, Macedonian prime minister Zoran Zaev met with his Chinese counterpart, Li Keqiang.
• On 6-7 July 2018, in Sofia, Bulgaria, a high-level delegation led by the prime minister, Zoran Zaev, participated in the “17+1” Summit of Heads of Government and States of the CEE countries and within the Summit held a bilateral meeting with his Chinese counterpart, Li Keqiang. 
• On 27 November 2017, in Budapest during the 6^th annual 17+1 Summit of Heads of Government of the and States of the CEE countries Macedonian prime minister Zoran Zaev held a bilateral meeting with Chinese prime minister Li Keqiang,  
• Within the 5^th annual “17+1” Summit of Heads of Government of the and States of the CEE countries, held between 4-6 November 2016, in Riga, the Macedonian prime minister Emil Dimitriev held a bilateral meeting with Chinese Prime Minister Li Keqiang. 
• During the 4^th annual “17+1” Summit of Heads of Government of the and States of the CEE countries, which took place between 24-26 November 2015 in Suzhou and Beijing, North Macedonian Prime Minister Nikola Gruevski held a bilateral meeting with Chinese prime minister Li Keqiang. During the visit, in Beijing, an Investment Forum was organised by the North Macedonian government, the North Macedonian embassy, and the Investment Foundation of the People’s Republic of China for Asia and Africa.   
• Other meetings between Nikola Gruevski and Li Keqiang, within the “17+1” Summits, took place in December 2014 in Belgrade, and in November 2013 in Bucharest.

Meetings at the level of foreign ministers

• In November 2016, in Riga during the 5^th Summit of the Heads of Government of the People’s Republic of China and the CEE countries, Foreign Minister Nikola Poposki held bilateral meetings with his counterpart Wang Yi. 
• In November 2015, in Beijing, within the 4^th Summit of the Heads of Government of the People’s Republic of China and the CEE countries, Foreign Minister Nikola Poposki held bilateral meetings with his counterpart Wang Yi.   
• Between 17-20 July 2007, foreign minister Antonio Milososki, at the invitation of the Foreign Ministry of the People’s Republic of China, Yang Jiechi, paid an official visit to the People’s Republic of China.

Other meetings and visits

On China’s initiative, between 29-31 March 2021 a delegation led by the Minister of National Defence, General Wei Fenghe, made an official visit to North Macedonia. The visit was part of a trip to Europe that also included Hungary, Serbia, and Greece.

Parliamentary cooperation

• There is a Parliamentary Group for Cooperation with the People’s Republic of China, the current composition of which is: Vlado Misajlovski as group president, and members including Lidija Petkoska, Igor Zdravkovski, Marija Georgievska, Jovan Mitreski, Goran Misovski, Bajram Kadrija, and Afrim Gashi.
• Between 4-7 July 2019, a delegation for social development affairs from the Committee of the Chinese People’s Congress of the People’s Republic of China, led by director Hee Iting, paid a visit to North Macedonia.
• Between 17-20 June 2019, the president of the Assembly, Talat Xhaferi, paid a return visit to China and met with the president of the National Committee of the People’s Political Consultative Conference, Wang Yang, as well as with the president of the Chinese National Assembly, Li Jangshu.
• Between 7-9 July 2018, a high-level delegation of the National Committee of the People’s National Consultative Conference of China, led by vice-president Zhang Jingli, at the invitation of the President of the Assembly Talat Xhaferi paid a working visit to North Macedonia.
• Between 22-26 April 2013, a delegation led by the president of the Parliamentary Group for Cooperation between the Parliament of the Republic of Macedonia and the People’s Republic of China, Silvana Boneva, and the chairman of the Committee on Defence and Security, Vlatko Gjorchev, visited the PRC and participated in the China-Europe High-Level Political Forum
• Between 26 April and 3 May 2010, Trajko Veljanoski paid the first official visit of a parliamentary delegation at the highest level and met with the president of the All-China People’s Congress, Wu Banguo. On 1 May 2010 he participated in the opening ceremony of the Shanghai EXPO 2010 World Exhibition.  
• Between 9-12 February 2009, the Parliamentary Group of the Chinese People’s Congress for Cooperation with the Parliament of the Republic of Macedonia visited Macedonia. In addition to the meeting with the hosts in the Assembly of the Republic of Macedonia, a meeting was held with Foreign Minister Antonio Milososki.

Cooperation Framework: number of state-to-state agreements, areas of formalized cooperation, agreements and projects with local authorities, exchange and training programmes with civil servants

Concluded and ratified agreements that have entered into force

1. Agreement on scientific and technological cooperation between the Government of the Republic of Macedonia and the Government of the People’s Republic of China: concluded on 7 March 1995 in Skopje, ratified on 20 September 1995, published in the “Official Gazette of the Republic of Macedonia” no. 45/1995, and effective 15 November 1995.
2. Agreement on cultural cooperation between the Government of the Republic of Macedonia and the Government of the People’s Republic of China: concluded on 31 May 1995 in Beijing, ratified on 29 November 1995, published in the “Official Gazette of the Republic of Macedonia” no. 60/1995, and effective 10 April 1996.
3. Agreement between the Government of the Republic of Macedonia and the Government of the People’s Republic of China on trade and economic cooperation: concluded on 31 May 1995 in Beijing, ratified on 29 November 1995, published in the “Official Gazette of the Republic of Macedonia” no. 60/1995, and effective 14 April 1996.
4. Agreement between the Government of the Republic of Macedonia and the Government of the People’s Republic of China on the avoidance of double taxation and the protection against fiscal evasion with respect to income tax and capital tax: concluded on 9 June 1997 in Beijing, ratified on 18 September 1997, published in the “Official Gazette of the Republic of Macedonia” no. 49/97, and effective 29 November 1997.
5. Agreement between the Government of the Republic of Macedonia and the Government of the People’s Republic of China on encouragement and mutual protection of investments: concluded on 9 June 1997 in Beijing, ratified on 18 September 1997, published in the “Official Gazette of the Republic of Macedonia” no. 49/97, and effective 1 November 1997.
6. Agreement on Cooperation in the Field of Health and Medicine between the Government of the Republic of Macedonia and the Government of the People’s Republic of China: concluded on 27 April 2002 in Beijing, ratified on 24 December 2002, published in the “Official Gazette of the Republic of Macedonia” no.100 / 2002, and effective 24 November 2006.
7. Agreement between the Government of the Republic of Macedonia and the Government of the People’s Republic of China on Cooperation in the Field of Animal Health Protection and Quarantine: concluded on 27 April 2002 in Beijing, ratified on 24 December 2002, published in the “Official Gazette of the Republic of Macedonia” no.100 / 2002, and effective 23 January 2003
8. Agreement between the Government of the Republic of Macedonia and the Government of the People’s Republic of China on phytosanitary cooperation: concluded on 27 April 2002, in Beijing, ratified on 24 December 2002, published in the “Official Gazette of the Republic of Macedonia” no.100 / 2002, and effective 23 January 2003.
9. Agreement on economic and technical cooperation in the field of infrastructure between the Government of the Republic of Macedonia and the Government of the People’s Republic of China: concluded on 27 November 2012 in Skopje, published in the “Official Gazette of RM” no. 15/13, and in force from April 7, 2013.
10. Agreement on visa exemption for holders of diplomatic and service passports between the Government of the Republic of Macedonia and the Government of the People’s Republic of China: concluded on 5 November 2016 in Riga, ratified on 21 November 2017, published in the “Official Gazette of the Republic of Macedonia” no. 171/2017, and effective 16 January 2020

CIVIL SOCIETY

Cooperation of various Civil Society organisations with Chinese counterparts by sector

No data.

Engagement with local Chinese embassy – projects, common initiatives, etc.

No data.

Most prominent local CS figures supportive of expanded cooperation with China

No data.

Bilateral projects by sector

No data.

MEDIA

Media outlets with Chinese ownership

No data.

Cooperation and content agreements with Chinese counterparts

No data.

Exchange and other types of cooperation

No data. 

Media outlets with pro-China content

No data.

ACADEMIC RESEARCH

Scope and range of academic cooperation agreements with local universities

The Ministry of Education and Science undertakes cooperation on the basis of the Agreement on Cooperation in the field of education between the Ministry of Education and Science of the Republic of Macedonia and the Ministry of Education of the People’s Republic of China, signed on 5 December 2007 in Beijing; and PRC Scientific and technological cooperation between the Government of the Republic of Macedonia and the Government of the People’s Republic of China, signed on 7 March 1995 in Skopje. Based on the Agreement on Cooperation in the Field of Education, the Chinese side annually awards a quota of up to ten scholarships for North Macedonian students for undergraduate and master’s studies and specialisations; a range of areas of study are represented. 

Based on the Agreement for scientific and technological cooperation with the People’s Republic of China for the period 2020-2021, the realisation of 20 joint North Macedonian-Chinese scientific research projects in the following areas took place: biology, veterinary medicine, fisheries, information technology and automation, computer technology and informatics, construction, quality control, new technologies, medicine, environment, and telecommunications.

Joint academic programmes and degrees by university and subject

The Ministry of Education and Science does not have data on concluded agreements on the level of cooperation between higher education institutions in North Macedonia and China. The Ministry of Education and Science implements cooperation at the level of ministries and does not have information on cooperation with local non-governmental organisations.

CULTURE

Cultural / educational agreements at national and local level

There is an agreement between the Government of Macedonia and the Government of the People’s Republic of China signed in 1995 in Beijing on executive programmes between the ministries of culture. In September 2017, Chinese Ministry of Culture organised the signing of an executive programme for cooperation in the field of culture for the period 2018-2023 and a memorandum of understanding for establishing a coordination centre for cultural cooperation between China and countries from central and eastern Europe in North Macedonia.

In 2013, the St Clement of Ohrid National University Library of in Skopje signed a deal with China Hanban, a department of the Chinese Ministry of Education. Also, in 2013, the same institution signed a cooperation agreement with the Chinese national library.  

Prominent bilateral cultural projects and events

Within the framework of the Stars of the World Literature project, translation of seven books by Chinese authors was made into Macedonian.

An Anthology of Chinese Classical Poetry has been published in Macedonian.

Participation of the Ministry of Culture in more than 15 cultural events, including literature and photography, events

Reconstruction of the Goce Delcev elementary school in the city of Prilep for €0.5 million was carried out by the Chinese company IPPR.

Purchase of 23 school buses for various municipalities across North Macedonia worth around €1 million from Chinese sources.

Construction of the Rajko Zinzifov elementary school including a sports hall worth €4.2 million from Chinese sources.

With the signing in 2014 of the Agreement between the Government of North Macedonia and PRC for “II stage of the project education”, implementation of development funds from PRC for financing project has been officially released. With this agreement, the Chinese government will provide equipment and software, video conferencing equipment, interactive education platform with software worth €6 million. The Chinese side will be responsible for the maintenance of all the equipment. It will deploy technicians to maintain the system. The Macedonian side is responsible for securing the necessary documents as well as internet access to schools. 

Language education

There is no credible information about Chinese language education and courses outside the Confucius Institute within the University of Saints Cyril and Methodius in Skopje.  

Prominent organizations and artists in the areas of bilateral cooperation

No data.

PEOPLE-TO-PEOPLE INTERACTION

Tourism

The Ningbo fair is one of the largest investments and trade fairs in China and is organised by the International Fair in Ningbo and supported by the Ministry of Commerce of China and Zhejiang Province.

The business event is attended by a Chinese delegation consisting of representatives from the Ningbo International Fair, the director of the Ningbo Bureau of Market Logistics and Free Trade Zones Cooperation, the deputy director of the Ningbo Bureau of Culture, TV / Radio and Journalism, the deputy director of Ningbo Tourism Administration, representatives of the Chinese embassy in Macedonia, as well as the president of the Association of Chambers of Commerce of Macedonia, the presidents of the branch chambers within the Chamber of Commerce of Macedonia and representatives of companies.

In 2019, the Agency for Promotion and Support of Tourism of North Macedonia attended the international ITB ASIA fair in Singapore alongside delegations from Serbia and Montenegro. Many meetings with Chinese tour operators have been conducted. Follow-up of these meetings took place in Skopje, with meetings with the Chinese ambassador who confirmed interest in abolishing the visa regime for Chinese tourists. The agency provided information to the Macedonian government with a request to abolish visas and to introduce a “voucher system” enabling approved Macedonian travel and tourist agencies to request visa exemptions for Chinese visitors. However, the covid-19 pandemic and consequent travel restrictions have meant there is no final decision yet on this proposal.

According to the State Statistical Office, the number of Chinese tourists in 2018 was 13,429 and the number of overnight stays was 16,959. In 2019, the number of Chinese tourists was 13,292 and the number of overnight stays was 17,426, representing a 3% increase from 2018.

P2P exchanges via different types of institutions – educational, state institutions, etc.

No data.

Prominent cases of celebrities in both countries

No data.

Prominent stories of P2P interaction / personalities

No data.