In 2023, China and Serbia signed a Free Trade Agreement, marking China's first FTA with a Central and Eastern European country and making Serbia the 29th FTA partner of China.

Within the network of China's free trade zones, the China-Serbia FTA stands out in two aspects: regionally, it is China's first FTA with a Central and Eastern European country; in terms of the process, from the formal initiation of negotiations in April 2023 to the completion of all negotiations, followed by the signing of the agreement and its formal entry into force, the entire process took less than a year and a half, a relatively rare occurrence among the FTAs signed by China

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According to the head of the International Department of China's Ministry of Commerce, after the China-Serbia Free Trade Agreement comes into effect, both sides will mutually eliminate tariffs on 90% of tariff lines. Among these, over 60% of the tariff lines will have their tariffs eliminated immediately upon the agreement taking effect. The proportion of imports under zero-tariff lines for both sides will reach around 95%.

Specifically, Serbia will include key products of interest to China such as automobiles, photovoltaic components, lithium batteries, communication equipment, machinery, refractory materials, and certain agricultural and aquatic products in the zero-tariff category. The tariffs on these products, currently ranging from 5% to 20%, will gradually be reduced to zero.

On the other hand, China will include products of interest to Serbia such as generators, electric motors, tires, beef, wine, and nuts in the zero-tariff category. The tariffs on these products, also currently ranging from 5% to 20%, will gradually be reduced to zero as well.

This means that in the future, China's advantageous products such as automobiles, photovoltaic components, and lithium batteries will further expand their exports to Serbia, while Serbia's main export products like beef, wine, and nuts will enter the Chinese market at more favorable prices. "This is a win-win situation," Liu Zuokui said.

Additionally, China and Serbia have made legally binding commitments in the agreement, including rules of origin, customs procedures and trade facilitation, sanitary and phytosanitary measures, technical standards, and more.

This will provide a more stable and transparent business environment for enterprises from both countries to conduct cooperation, further enhancing the level of trade facilitation between the two countries.

The spokesperson of the Ministry of Commerce stated that the advancement of trade liberalization and facilitation between China and Serbia is not only beneficial for expanding bilateral trade but also for promoting investment cooperation and the integration of industrial chains between the two sides. This will better leverage their respective comparative advantages and collectively enhance international competitiveness.

In addition to bilateral economic and trade cooperation, the Belt and Road Initiative (BRI) will also benefit from the implementation of the China-Serbia Free Trade Agreement. Liu Zuokui, Deputy Director of the European Studies Institute of the Chinese Academy of Social Sciences, pointed out that considering Serbia's significant role as an important partner in China's BRI, the implementation of the China-Serbia Free Trade Agreement will strengthen the institutional arrangements between the two sides and upgrade the quality of economic and trade cooperation. It's like adding a new log to a roaring fire, bolstering the high-quality construction of the BRI.

The Republic of Serbia is located in the central and northern part of the Balkan Peninsula in Europe, with a total land area of 88,500 square kilometers. Its capital, Belgrade, is situated at the confluence of the Danube and Sava rivers, at the crossroads between East and West.

In 2009, Serbia became the first country in the Central and Eastern European region to establish a strategic partnership with China. Today, under the framework of the Belt and Road Initiative, the governments and enterprises of China and Serbia have engaged in close cooperation, focusing on boosting Serbia's transportation infrastructure development and driving local economic growth.

Under the Belt and Road Initiative, China and Serbia have embarked on a series of cooperative projects, including the Budapest-Belgrade Railway and the "Danube Corridor" infrastructure projects. These initiatives have not only facilitated transportation but also significantly boosted economic development.

In 2016, the relationship between China and Serbia was upgraded to a comprehensive strategic partnership. The ongoing industrial cooperation between the two countries has brought significant economic and social benefits.

In recent years, with the signing of visa exemption and driver's license recognition agreements, as well as the establishment of direct flights, there has been a noticeable increase in the exchange of personnel between the two countries. Cultural interactions have become more frequent, and the enthusiasm for learning Chinese in Serbia has continued to grow.

Customs data shows that the total bilateral trade between China and Serbia for the entire year of 2023 amounted to 30.63 billion yuan, an increase of 31.1% year-on-year.

Of this total, China exported 19.00 billion yuan to Serbia and imported 11.63 billion yuan from Serbia. In January 2024, the bilateral trade volume between China and Serbia was 424.95 million USD, an increase of 85.21 million USD compared to the same period in 2023, representing a year-on-year growth of 23%.

Specifically, the total value of goods exported from China to Serbia was 254.55 million USD, an increase of 24.9% year-on-year, while the total value of goods imported from Serbia to China was 170.40 million USD, an increase of 20.2% year-on-year.