Croatia, which imports goods from China in the amount of billions of kuna, while it exports ignorable amounts of home products to China, hosted a meeting of Croatian President Stjepan Mesic and his Chinese counterpart Hu Jintao.

The topic was further development of economic and trade relations between the two countries and determining the course of the partnership, which has paid off for China when it comes to export and has paid off for Croatia regarding import.

New economic deal with China ahead

During the first ten months of 2008, Croatian-Chinese trade amounted to 1.46 billion dollars, which is 9.3 percent more compared to the same period in 2007, News website writes.

Four important documents are expected to be signed during the visit of the Chinese president to Croatia, which includes a big economic contract, China Daily writes.

China is Croatia`s seventh trade partner. Import is ranked fourth, while China came in 42 nd when it comes to export.

China and Croatia established diplomatic relations in May 1992 and declared overall partnership in 2005, which reinforced their trust on a political, as well as economic level. Hu Jintao`s visit to Croatia probes that China is more than aware of Croatian investment in the development of the economy and political stability, as well as the role Croatia has in securing international peace and security.

Chinese goods are cheap and of sufficient quality

We asked some of the leading economy experts in Croatia of the effects of vast import of Chinese goods on Croatia.

Croatia imports cheap goods which meet the necessities of Croatian consumers with the quality.

Ljubo Jurcic

- Croatia imports cheap goods which meet the necessities of Croatian consumers with the quality – Ljubo Jurcic told us, pointing out that China is not the only country that Croatia has a problem of big import and ignorable export. Chinese goods are more alluring to consumers primarily because they do not cost a lot and then are of satisfying quality.

- Croatian export to China does not amount to a lot of money because China meets the necessities of its own population by national production - Ljubo Jurcic added.

Croatian products cost a lot more than cheap Chinese products. A large number of Chinese shops is on the rise, while the prices of Croatian products are not going down.

China is a phenomenon, a production base

Croatia`s total trade with China is constantly on the rise, since overall partnership has been declared. It should be said that with the rise of trade, Croatian deficit is on the rise as well, which amounted to 1.8 billion dollars in 2008. Covering up import with export is just 1.8 percent. In the first quarter of 2008, a rise of Croatian export was recorded in the amount of 43 percent, while Chinese import dropped by 17 percent.

- China is a production base, a world phenomenon – Mladen Vedris told us, explaining that the relationship between Croatia and China is favourable for China, which imports a lot, but at the same time, it experts a lot as well.

According to official records, Croatia exports medicine and raw materials and semi-products to China. For the first time, an increase in the amount of engine parts and electronic transformators has been recorded as well. Croatia imports traditional products from China (clothes, footwear, toys, gadgets etc), along with a rise of telecommunication equipment, computers and machines, Suvremena website writes.

- Availability of goods at affordable prices is essential – Mladen Vedris told us, explaining that by controlling quality, Croatia enables import of products which will satisfy market demand.

- Careful quality control is necessary and every country is trying to protect its production with detailed quality control more than customs inspections – Mladen Vedris added.

Import of cheap Chinese products is not favourable for Croatian entrepreneurs, but as long as there is demand for such goods on the market, Chinese import will remain stable. Quality is not as wanted as affordable prices are, while high prices are often not a guarantee of quality, therefore, it is understandable why Croatian consumers prefer low-cost products.