Central and Eastern Euorpean Countries As Partners in China s Belt and Road Initiative

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1 Central and Eastern Euorpean Countries As Partners in China s Belt and Road Initiative By Anita Tang September 30, 2015 China is already tightly involved in projects with central and eastern European countries a promising solid basis for the success of The Belt and Road Initiative Royal Roots Global Inc. All Rights Reserved. 1

2 The Belt and Road Initiative The Belt and Road Initiative is a development strategy and framework initiated by China: it focuses on connectivity and cooperation among countries of Asian, European and African continents, and their adjacent seas. The Initiative underlines China s push to take a bigger role in global affairs, and its need to export China s excess production capacity. At the end of April, 2015, China had not identified all nations included in the Belt and Road, but, so far, as many as 60 have voiced support and interest in the Initiative. For China, Central and Eastern European Countries (CEECs) are important partners in its Belt and Road Initiative; for CEECs, building economic ties with China is important, especially when the fall of Western European demand after the 2008 economic crisis is still impacting them. Closer cooperation between China and CEECs began a few years ago and it is showing great progress. Further cooperation between them will lead to even greater opportunities among the nations Royal Roots Global Inc. All Rights Reserved. 2

3 Cooperation between China and Central and Eastern European Countries Formal cooperation between China and central and eastern European countries started as early as 2006 when the nations respective ministry of agriculture worked together and participated in the China-CEEC Agro-trade and Economic Cooperation Forum. Participation grew as more central and eastern European countries joined the Forum. Further cooperation between China and CEECs gained steam in 2012 at the Prime Minister s Summit held in Warsaw, Poland. The focus was on the bigger picture economic growth and cooperation. Over the next few years, the cooperation framework expanded at a fast and vigorous tempo, and the past three years witnessed growing political mutual trust and frequent highlevel exchanges between China and CEECs. Currently, trade between China and its 16 CEE partners has reached some US$60 billion. Warsaw Summit 2012 The Prime Ministers Summit held in Warsaw, Poland, on April 26, 2012, was attended by then Chinese Premier Wen Jiabao and government leaders from 16 central and eastern European countries the prime ministers of Poland, Bosnia and Herzegovina, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Macedonia, Montenegro, Romania, Serbia, Slovakia and Slovenia, and the deputy prime ministers of Albania and Bulgaria. At the Summit, The European countries welcomed China's contribution to the world economy through its fast yet steady economic growth. Premier Wen reaffirmed support from China for European integration and the measures taken by central and eastern European nations to promote healthy economic development. China also proposed 12 measures for 2015 Royal Roots Global Inc. All Rights Reserved. 3

4 promoting friendly cooperation with Central and Eastern European Countries (Appendix I), including setting up a secretariat for cooperation between China and CEECs. The China-CEEC cooperation framework, or 16+1 Cooperation, was established. The leaders agreed to deepen practical cooperation in trade, investment, fiscal and financial areas. China would take positive steps to back cooperation with the European countries in infrastructure, high and new technology and clean energy. Aiming to further bolster twoway investment, the leaders expressed commitment to eradicating trade and investment protectionism. They also agreed to advance people-to-people exchanges. Bucharest Summit 2013 On November 26, 2013, Chinese Premier Li Keqiang met with his 16 counterparts from CEEC at the 2 nd Meeting at the level of Prime Ministers of China and Central and Eastern European Countries held in Bucharest, Romania. The state leaders pledged to expand their cooperation, particularly in investment and infrastructure construction. The group agreed to provide more support to small and mediumsized enterprises and offer larger room to play an "active role" in bilateral trade. Premier Li issued a six-point proposal on deepening China's ties with CEECs, including doubling trade volume in the next five years, enhancing cooperation on transportation infrastructure, new energy and finance, as well as expanding government exchanges. To further advance China-CEEC cooperation, parties at the meeting jointly formulated and issued the Bucharest Guidelines for Cooperation between China and Central and Eastern European Countries (Appendix II) focused on the theme of the meeting Win-Win Cooperation for Common Development and affirmed that cooperation will be conducted in accordance with their respective laws and regulations, and, in the case of EU member states, relevant EU legislation and regulations will also be observed Royal Roots Global Inc. All Rights Reserved. 4

5 Belgrade Summit 2014 On December 16, 2014, the 3 rd Meeting of Heads of Government of China and Central and Eastern European Countries was held in Belgrade, Serbia. Premier Li Keqiang participated in the meeting. Besides visiting the progress being made in cooperation between China and CEECs, the participants in particular commented on the implementation of the Bucharest Guidelines for Cooperation between China and Central and Eastern European Countries, and recognized that the 16+1 Cooperation has provided a new driving force to China-CEEC traditional friendship, built a new platform for mutually beneficial cooperation, and served as a new engine for deepening China-Europe relations for mutual benefit and win-win cooperation. The participants indicated that as their cooperation shows greater vitality and stronger appeal, China and CEECs are ready to make continuous efforts to bring it to a new level by acting on the basis of equality, mutual benefit and win-win cooperation, with a view to benefiting their countries and peoples, achieving common development and prosperity, and promoting peace and stability. It was also reiterated that China-CEEC cooperation is in line with China-EU relations and reaffirmed their commitment to deepening their partnership for peace, growth, reform and civilization based on the principles of equality, respect and trust, thus contributing as appropriate to the implementation of the EU-China 2020 Strategic Agenda for Cooperation. The Summit resulted in the Belgrade Guidelines for Cooperation between China and Central and Eastern European Countries (Appendix III) with the theme "New Driving Force, New Platform and New Engine". The Guidelines reaffirmed their readiness to expand cooperation in accordance with their respective laws and regulations, as well as in 2015 Royal Roots Global Inc. All Rights Reserved. 5

6 the case of EU member states, the EU legislation, regulations and policies stemming from their membership. It is important to note that the theme of the Belgrade Guidelines is very much aligned with the focus of the Belt and Road Initiative. Secretariat for Cooperation between China and CEECs Secretariat for Cooperation between China and Central and Eastern European Countries is a Chinese institution under the Chinese Ministry of Foreign Affairs. It deals with communication and coordination of cooperation work between China and CEECs, preparatory meeting of leaders, preparation for economic and trade forum, and the implementation of those outcomes. The Secretariat office is located in the department of European Affairs of China's Foreign Ministry to handle daily affairs. Secretary-general of the Secretariat is Wang Chao (deputy foreign minister), executive secretary-general is Liu Haixing (deputy directorgeneral of the Department of European Affairs), and deputy secretary-general is Chen Guoyou (deputy director-general of the Department of European Affairs). National coordinators are appointed by central and eastern European countries to be responsible for coordination with the Secretariat and to jointly promote the China and Central and Eastern European Countries Cooperation. The 16+1 Cooperation European member-countries are: The Republic of Albania Bosnia and Herzegovina The Republic of Bulgaria The Republic of Croatia The Czech Republic The Republic of Estonia Hungary The Republic of Latvia The Republic of Lithuania The Republic of Macedonia Montenegro 2015 Royal Roots Global Inc. All Rights Reserved. 6

7 The Republic of Poland Romania Serbia The Slovak Republic The Republic of Slovenia There are 19 Chinese member-organizations in the Secretariat, they are: Ministry of Foreign Affairs International Department Central Committee of CPC National Development and Reform Commission Ministry of Education Ministry of Science and Technology Ministry of Finance Ministry of Transport Ministry of Agriculture Ministry of Commerce Ministry of Culture State Administration of Press, Publication, Radio, Film and Television of China People's Bank of China National Tourism Administration National Railway Administration of China Civil Aviation Administration of China Central Committee of the Communist Youth League China Council for the Promotion of International Trade China Development Bank The Export-Import Bank of China 2015 Royal Roots Global Inc. All Rights Reserved. 7

8 16+1 Cooperation Intensified As a great supporter of the Belt and Road Initiative, President Xi Jinping pointed out that to develop a large Euro-Asia market, efforts should be made to facilitate the exchange of persons, commodities, companies, capital and technology and enhance intercommunication of infrastructures so as to realize the maximum value of various production factors and add fresh impetus to the prosperity of the Euro-Asia continent. There is no doubt that the 16+1 Cooperation will play a key role in this large Euro- Asia development. During the 7th European Economic Congress held in Katowice, Poland, April 20-22, 2015, the Belt and Road Initiative was discussed in great length. It was also announced at the Congress that the 16+1 Cooperation would establish an investment information secretariat in Warsaw, Poland. One of the 12 measures proposed by Premier Wen Jiabao at the Warsaw Summit in 2012 was the establishment of a US$10 billion special credit line to promote China-CEEC economic cooperation and trade. On this end, Premier Li Keqiang, at the Belgrade Summit in 2014, called on the parties to fully utilize such credit line and other financing tools provided by China. In terms of connectivity in infrastructure, which is a key focus of the Belt and Road Initiative, there are some headways made by the 16+1 Cooperation through its hard work in the past few years: In December, 2014, a contract was signed by China with Serbia and Hungary to build a highspeed train linking Belgrade and Budapest; this train is expected to cut travel time between these two cities from eight to less than three hours Royal Roots Global Inc. All Rights Reserved. 8

9 In September, 2014, Romanian Prime Minister announced the beginning of negotiations with the European Commission for the construction of a high-speed rail line that will connect Bucharest, Iasi and Chisinau, which was a deal signed with the Chinese in November, A couple other deals among others being explored are building the Danube River Bridge in Belgrade, Serbia; and construction of the Macedonia-Servia Superhighway. The Belgrade Summit 2014 produced the Belgrade Guidelines that promote economic cooperation, trade and investment; expanding financial cooperation; increasing cooperation in science, technology, innovation, environmental protection and energy; deepen people-topeople and cultural exchanges all key to the Belt and Road Initiative. The Need for a Proactive Strategic Plan To Position for Greater Success within the CEECs The 16+1 Cooperation gained a head start over other countries that want to get involved in China s Belt and Road Initiative. How a nation within the CEECs can take advantage of China s massive westward expansion to Western Europe and Moscow is crucial to the nation s long-term economic development. Such strategic planning and actions involve working with both government bodies and businesses in China and in one s respective country. The right positioning creating one s comparative advantage and the ability to execute are keys to success Royal Roots Global Inc. All Rights Reserved. 9

10 Appendix I China's Twelve Measures for Promoting Friendly Cooperation with Central and Eastern European Countries 1. Set up a secretariat for cooperation between China and central and eastern European countries. The secretariat will be based in China's Ministry of Foreign Affairs, and charged with communication and coordination on matters related to cooperation, preparation for leaders' meetings and business forums and implementation of relevant outcomes. The 16 central and eastern European countries will, in the principle of voluntarism, each designate a counterpart department and a coordinator to take part in the work of the secretariat. 2. Establish a US$10 billion special credit line, a certain proportion of which will be concessional loans, with a focus on cooperation projects in such areas as infrastructure, high and new technologies, and green economy. The 16 central and eastern European countries may file project application to the National Development Bank of China, Export and Import Bank of China, Industrial and Commercial Bank of China, Construction Bank of China, Bank of China or China CITIC Bank. 3. Set up an investment cooperation fund between China and central and eastern European countries with the goal of raising US$500 million in the first stage. 4. China will send trade and investment promotion missions to central and eastern European countries and take concrete steps to move forward bilateral economic cooperation and trade. China would like to work with the 16 central and eastern European countries to increase total two-way trade to US$100 billion by China will, in the light of actual conditions and needs of central and eastern European countries, encourage Chinese enterprises to cooperate with relevant countries to establish one economic and technological zone in each country in the next five years. China will continue to encourage and support more Chinese enterprises to take part in the development of existing economic and technological zones in the relevant countries. 6. China stands ready to actively explore with the 16 central and eastern European countries financial cooperation such as currency swap, local currency settlement for 2015 Royal Roots Global Inc. All Rights Reserved. 10

11 cross-border trade, and establishment of bank branches in each other's countries, with a view to enhancing support and services for practical cooperation. 7. Establish an expert advisory committee on the construction of transportation network between China and central and eastern European countries. With the Ministry of Commerce of China as the coordinator and the 16 central and eastern European countries participating on a voluntary basis, China and the European countries will explore the building of regional highway or railway demonstration networks through joint venture, joint contracting and other means. 8. Propose to hold a forum on cultural cooperation between China and central and eastern European countries in 2013 in China and, in this context, hold regular highlevel and expert meetings on culture, cultural festivals and theme activities. 9. Provide 5,000 scholarships to the 16 central and eastern European countries in the next five years. Support the Confucius Institutes and Confucius Classrooms program in the 16 countries and invite 1,000 students from relevant countries to study the Chinese language in China in the next five years. Enhance inter-university exchanges and joint academic research, and send 1,000 students and scholars to the 16 countries in the next five years. The Ministry of Education of China plans to host an education policy dialogue with central and eastern European countries next year. 10. Propose to establish a tourism promotion alliance between China and central and eastern European countries, which will be coordinated by China Tourism Administration and open to participation by civil aviation authorities, travel agencies and airline companies of the two sides. The purpose is to enhance mutual business promotion and joint tourist destination development, and explore the possibility of opening more direct flights between China and the 16 central and eastern European countries. China Tourism Administration plans to co-organize a tourism products promotion for China and central and eastern European countries during the China International Tourism Mart to be held in Shanghai this autumn. 11. Establish a research fund on relations between China and central and eastern European countries. China is ready to provide RMB2 million yuan every year to support academic exchanges between research institutes and scholars of the two sides Royal Roots Global Inc. All Rights Reserved. 11

12 12. China plans to host the first young political leaders forum of China and central and eastern European countries in 2013 and invite youth representatives from both sides to the forum to enhance mutual understanding and friendship. Source: Appendix II The Bucharest Guidelines for Cooperation between China and Central and Eastern European Countries I. Hold a China-CEEC meeting of heads of government every year to review cooperation achievements and set the direction for future cooperation. Parties will discuss and set the date and venue of the 2014 meeting as soon as possible. II. Consider formulating a medium-term agenda for cooperation when appropriate in light of how China-CEEC cooperation evolves. III. Promote investment, economic and trade cooperation i. Firmly oppose protectionism in all its forms and manifestations, work to promote mutual investment and scale up and upgrade economic cooperation and trade while striving to mitigate its current imbalances. ii. Designate and announce 2014 as the China-CEEC Investment and Business Promotion Year, and under its framework: 1. Hold a China-CEEC ministerial meeting on promotion of economic cooperation and trade; 2. Hold an expo of CEEC commodities in China; 3. Hold a China-CEEC symposium on macroeconomic policies in China; 4. Hold a China-CEEC symposium on investment promotion in China; 5. Organize a China-CEEC investment promotion event at the China International Fair for Investment and Trade; 6. Hold a China investment forum in the Czech Republic; 7. Establish a China-CEEC liaison mechanism for investment promotion agencies; 2015 Royal Roots Global Inc. All Rights Reserved. 12

13 8. Support the establishment of a China-CEEC association of chambers of commerce, joined by chambers of commerce of China and CEECs on a voluntary basis. iii. Encourage SMEs to play an active role in business cooperation and discuss the possibility of establishing a platform for China-CEEC SME exchanges and cooperation. The Chinese side welcomes CEECs' participation in the China International Small and Medium Enterprises Fair in 2014 and is ready to organize a special event for CEEC SMEs at the Fair. Parties support SMEs in strengthening cooperation in green technologies. Poland will hold a special event during POLEKO Fairs in Poland. iv. Encourage Chinese and CEEC businesses to discuss the possibility and opportunities of using convenient geographic location and favorable investment conditions of China and CEECs to jointly explore third markets. v. Encourage parties to develop agro-trade when supplies are ensured and their respective inspection and quarantine requirements are met. vi. Support the establishment of a China-CEEC association to promote agricultural cooperation. Relevant Chinese and CEEC agencies, businesses and organizations are welcome to join on a voluntary basis. vii. China and one of the CEECs will take turns to hold a China-CEEC agricultural cooperation forum. IV. Expand financial cooperation i. China and CEECs will step up coordination, encourage their financial institutions to engage in cooperation in flexible and diverse forms and bring into full play the role of the US$10 billion special credit line in promoting China-CEEC economic cooperation and trade. ii. Parties welcome the official launch of the China-CEEC Investment Cooperation Fund (stage one), commend the efforts made by Chinese, Polish and Hungarian financial institutions, support the relevant financial institutions in launching stage two of the fund at an appropriate time and encourage more financial institutions and businesses to contribute to the fund. In the meantime, CEEC governments, 2015 Royal Roots Global Inc. All Rights Reserved. 13

14 financial institutions and businesses are welcome to recommend high-quality and promising projects to the Fund. iii. Support qualified and interested financial institutions of China and CEECs in establishing branches and developing business in each other's countries in line with the relevant regulatory and supervisory legislation. Support the People's Bank of China and the central banks of CEECs in signing agreements of currency swaps as they see necessary and promote local currency settlement as one of the means to promote trade and investment. iv. Support qualified and interested Chinese and CEEC institutions in investing in each other's inter-bank bond market. V. Enhance cooperation in connectivity i. Actively discuss the possibility of building an international railway transportation corridor connecting China with CEECs and encourage businesses to establish bonded areas and distribution centers along the railway routes to build a new logistics passage between China and Europe. ii. Strengthen cooperation in infrastructure development, such as construction of roads, railways, ports and airports based on the principle of mutual benefit. iii. Support the establishment of a China-CEEC association on infrastructure cooperation and relevant Chinese and CEEC agencies and businesses are welcome to join on a voluntary basis. iv. Welcome a high-level conference on transport, logistics and trade routes connecting Asia with Europe to be held in 2014 in Riga, Latvia. VI. Expand cooperation in science, technology, innovation, environmental protection and energy i. Hold on a regular basis a China-CEEC symposium to promote innovation, technological cooperation and international technology transfer, with the first symposium to be held in ii. Strengthen cooperation in the information and communications sector Royal Roots Global Inc. All Rights Reserved. 14

15 iii. Strengthen China-CEEC cooperation and exchanges on protection of forest, wetland and wildlife and development of green economy and eco-culture. iv. The Chinese side stands ready to strengthen cooperation and exchanges with CEECs on environment-friendly science and technology, negotiate the signing of relevant MOUs on environmental cooperation, encourage institutes of environmental science and research from China and CEECs to establish partnerships and research networks, support environmental experts and scholars in carrying out exchanges and mutual visits, engage in cooperative research programs on water, air and solid waste management, promote exchanges, cooperation and capacity building in the fields of eco-industries, sustainable consumption and production and environmental labeling certification, and achieve mutual benefit and win-win progress in environmental science, technology and innovation. v. The Chinese side stands ready to step up cooperation with CEECs on nuclear power, wind power, hydro power, solar power and other sources of clean power for mutual benefit and common development. CEECs welcome the Chinese readiness in this regard. vi. Encourage closer cooperation between China and CEECs in the fields of protection and sustainable use of natural resources, geology, mining and spatial planning. VII. Promote dynamic people-to-people and cultural exchanges and cooperation i. Hold the first China-CEEC high-level symposium of think tanks in China in December ii. The Secretariat for Cooperation between China and Central and Eastern European Countries will organize mutual visits by 50 Chinese journalists and 50 CEEC journalists in iii. Hold the China-CEEC Young Political Leaders' Forum and the China-CEEC Cultural Cooperation Forum once every two years. China and CEECs will discuss and set the venues and dates of the two events to be held in 2015 as soon as possible. iv. Support the establishment of a China-CEEC association of tourism promotion agencies and businesses and welcome Chinese and CEEC tourism promotion 2015 Royal Roots Global Inc. All Rights Reserved. 15

16 agencies and businesses to join on a voluntary basis. Promotion events of Chinese and CEEC tourism products will continue to be held at the China International Travel Mart. v. Hold on a regular basis the China-CEEC Education Policy Dialogue. Actively explore the possibility of establishing a China-CEEC association of institutes of higher learning. vi. Take effective measures to facilitate movement of people. The Chinese side welcomes visa and residence permit facilitation measures of Romania and the Czech Republic for Chinese citizens and announces that citizens of all the 16 CEECs will be entitled to 72-hour visa-free transit in Beijing, Shanghai and other ports. VIII. Cooperation at the sub-national level will be encouraged and supported as one of the important pillars of China-CEEC cooperation. Support the establishment of a China- CEEC association of provincial governors, joined by Chinese and CEEC provinces, states and municipalities on a voluntary basis. The China-CEEC Local Leaders' Meeting will be held once every two years. Source: Appendix III The Belgrade Guidelines for Cooperation between China and Central and Eastern European Countries 1. Support China in hosting the 4 th China-CEEC Meeting of Heads of Government in Acknowledging the EU-China 2020 Strategic Agenda for Cooperation as the guiding document for China-EU relations, the participants support the efforts to start formulating a medium-term agenda for cooperation between China and interested Central and Eastern European Countries as appropriate in Enhance cooperation on connectivity 2015 Royal Roots Global Inc. All Rights Reserved. 16

17 (1) Taking note of the agreed EU regulations, guidelines, policies and processes in connectivity and the agreed regulations, guidelines, policies and processes of other regions, participants welcome and support exploring possibilities of China- CEEC cooperation in this field. (2) The participants welcome the signing of cooperation agreements on the railway connecting Belgrade and Budapest between China, Hungary and Serbia, and hope that the relevant parties would continue to create a favorable environment for the cooperation on the project through joint efforts. (3) Continue to improve the China-Europe international railway container traffic, making it a priority in deepening mutually-beneficial cooperation between China and Europe and improving connectivity and market-access between Asia and Europe. Encourage relevant countries to facilitate customs clearance, create new logistics routes and hubs and encourage the participation of businesses based on their own advantages. (4) Strengthen cooperation in infrastructure development including road, railway, port and airport under the principle of mutual benefit, and actively discuss the cooperation on building regional transport networks. (5) Invite more CEECs to take part in the China-EU Smart and Secure Trade Lanes (SSTL) Pilot Project. Actively discuss the inclusion of land, air and other means of transportation into SSTL cooperation. (6) Welcome Serbia in leading the efforts to establish a China-CEEC association on transport and infrastructure cooperation, and welcome the participation of relevant Chinese and CEEC institutions, businesses and organizations on a voluntary basis. (7) Support the functioning of existing direct flights between China and CEECs, the opening of new routes at an early date, and the exchanges and cooperation in fields related to civil aviation. (8) Support the Riga High Level Conference on Transport, Logistics and Trade Routes in (9) Support the establishment of a China-CEEC association on logistics cooperation at an appropriate time. (10) Welcome heads of CEEC customs authorities to China for relevant forums in Promote economic cooperation, trade and investment 2015 Royal Roots Global Inc. All Rights Reserved. 17

18 (1) Firmly oppose protectionism in all its forms and manifestations. Work to increase mutual investment, elevate the scale and level of economic cooperation and trade, and create conditions for the sustained and steady growth of trade. (2) Welcome and support the establishment of the executive body of the China- CEEC Business Council in Warsaw, Poland, and invite relevant Chinese and CEEC business associations, organizations and businesses to join on a voluntary basis. (3) Welcome the establishment of the Secretariat of the China-CEEC Investment Promotion Agencies Contact Mechanism in Beijing, China, and Warsaw, Poland, and support its active role in promoting information sharing on investment and increasing mutual investment between China and CEECs. (4) Hold the China-CEEC Ministerial Meeting on Promoting Trade and Economic Cooperation once every two years. Organize a China-CEEC investment and trade fair during the China International Consumer Goods Fair in Ningbo, China, in (5) The Chinese side welcomes CEEC businesses to continue to participate in the China International Small and Medium Enterprises Fair and other fairs held in Hebei Province and other Chinese localities. The CEECs welcome Chinese businesses to participate in trade fairs and expos in their countries. (6) Encourage Chinese and CEEC businesses to discuss the possibilities and opportunities of using the convenient geographic locations and favorable investment environment of China and CEECs to jointly explore third markets. (7) Encourage the participants to develop agricultural trade when supplies are ensured and in line with inspection and quarantine standards and requirements, and step up cooperation on animal husbandry, including breeding, farming, processing and trade. (8) Welcome and support Bulgaria in leading the efforts to establish a China-CEEC association on promoting agricultural cooperation and invite relevant Chinese and CEEC institutions, businesses and organizations to join on a voluntary basis, noting that the association will be officially launched in Sofia in the first half of (9) Hold the 10 th China-CEEC Agro-trade and Economic Cooperation Forum in Hungary in (10) Hold CEEC-China Forum during European Economic Congress in Katowice, Poland in Royal Roots Global Inc. All Rights Reserved. 18

19 5. Expand financial cooperation (1) Encourage Chinese and CEEC financial institutions to continue to engage in cooperation in flexible and diverse forms, explore creative models of financial cooperation, and improve financing conditions for businesses. Bring into full play the role of the US$10 billion special credit line and other financing tools in promoting China-CEEC economic cooperation and trade. (2) Commend the positive progress of the China-CEEC Investment Cooperation Fund (stage one) and the contribution by Hungary. Support the launch of stage two of the Fund and encourage more financial institutions and businesses to contribute to the Fund and conduct investment cooperation. (3) Encourage and support qualified and interested Chinese and CEEC financial institutions to establish branches, develop market and expand business in each other's countries in line with the relevant regulatory legislations. (4) Support the People's Bank of China and CEEC central banks in signing currency swap agreements as they see necessary, and facilitate local currency settlement as one of the effective means to increase trade and investment. Welcome the signing of currency swap agreements between China and Hungary and between China and Albania. Encourage Chinese and CEEC businesses to use RMB as settlement currency in cross-border trade and investment. (5) Support qualified and interested Chinese and CEEC institutions in investing in each other's inter-bank bond market. Welcome investment by the relevant institutions of Hungary and Lithuania in the Chinese inter-bank bond market. (6) Encourage Chinese and CEEC banks to develop comprehensive financial cooperation, including information and personnel exchanges and mutual business facilitation and support. (7) The Chinese side will favorably consider organizing the meeting of the Central Bank Governors' Club of the Central Asia, Black Sea Region and Balkan Countries in China in 2015 and welcomes the participation of countries in the relevant regions. 6. Hold the China-CEEC Seminar on Innovation, Technology Cooperation and International Technology Transfer in Slovakia in Encourage Chinese and CEEC research institutes and businesses to enhance industrial, academic and research cooperation and on international technology transfer Royal Roots Global Inc. All Rights Reserved. 19

20 (1) Continue to support closer cooperation on information and communications technology. Encourage joint research projects between China and CEECs and promote cooperation among companies of science and technology parks. (2) Step up China-CEEC cooperation and exchanges on protecting forest, wetland and wildlife, and on developing green economy and eco-culture and share experience of forestry development, with a view to increasing mutual understanding and promoting cooperation. (3) Encourage China and CEECs to develop nuclear energy projects under the principle of transparency and responsibility. Recognize the rights of each country to develop nuclear energy and the importance of properly fulfilling international obligations on nuclear security. Welcome the signing of nuclear energy cooperation documents between China and Romania and between China and the Czech Republic, and the common understanding between China and Hungary on nuclear energy cooperation. (4) Encourage closer China-CEEC cooperation on the protection and sustainable use of natural resources, geology, mining, shale gas development and spatial planning. (5) Welcome Romania's initiative of setting up a Center for Dialogue and Cooperation in energy-related projects and encourages representatives of the academia, legal institutions, businesses and governments in China and CEECs, as well as in other countries, to share and pool their expertise with a view to expanding and further developing their endeavors. 7. Deepen people-to-people and cultural exchanges and cooperation at the sub-national level (1) The Chinese side encourages its performing arts organizations to purchase programs from CEECs and supports Chinese and CEEC cultural and arts organizations, groups, businesses and artists in engaging in all-dimensional, wideranging practical cooperation such as training, joint creative work, experience sharing and platform building. The Chinese side is ready to use the opportunity of the Festival of Baltic Culture to gradually improve its model of cultural exchanges with CEECs to expand and enhance such exchanges. Support China and Poland in co-organizing an expert forum on the protection of Chinese and CEEC cultural heritage to be held in Poland. Welcome Albania's 2015 Royal Roots Global Inc. All Rights Reserved. 20

21 initiative to hold an expert forum in the field of tangible and intangible cultural heritage management and protection. Invite CEEC artistic directors of international jazz festivals to visit China, hold a China-CEEC summer dance camp in China, and hold Chinese art festival in the three Baltic countries in (2) Hold the China-CEEC High-Level Symposium of Think Tanks on a regular basis. (3) Support the establishment of a China-CEEC think tanks exchange and cooperation center. (4) The Secretariat for Cooperation between China and Central and Eastern European Countries will organize mutual visits by 50 Chinese journalists and 50 CEEC journalists in (5) Hold the 2 nd China-CEEC Young Political Leaders' Forum in China in (6) Hold the 2 nd China-CEEC Cultural Cooperation Forum in 2015 and hold a China- CEEC dance evening gala concurrently. (7) Welcome and support the establishment of China-CEEC Association of Tourism Promotion Agencies and Businesses in Hungary. The Association will organize promotion events, open a bilingual (Mandarin and English) website on China- CEEC tourism cooperation and develop more quality travel routes catered to the needs of Chinese and CEEC tourists. (8) Designate 2015 as Year of Promotion of China-CEEC Tourism Cooperation. Organize under this framework the 2 nd China-CEEC High Level Conference on Tourism Cooperation in Slovenia, a promotion event of Chinese tourism products, trips to CEECs by 1,000 Chinese travelers, a "China tourism day" event and other events, and build platforms for exchanges and cooperation between Chinese and CEEC tourism sectors. Invite media organizations and tourism businesses from both China and CEECs to look at each other's tourism products and routes and organize promotion events. The Chinese side will continue to invite heads of CEEC tourism authorities to participate in the China International Travel Mart in Kunming, Yunnan Province, in October (9) Hold the 3 rd China-CEEC Education Policy Dialogue in one of the CEECs in Welcome Sofia University (Bulgaria) in its capacity as the first rotating coordination center on the European side for China-CEEC Higher Education Institutes Consortium and support the Consortium in playing an important role in promoting China-CEEC educational exchanges and cooperation Royal Roots Global Inc. All Rights Reserved. 21

22 (10) Support China-CEEC cooperation in translation and publication of each other's literary works. The Chinese side welcomes CEECs to serve as the Country of Honor as a group at the Beijing International Book Fair in (11) Organize a Romanian film festival in China in 2015; the Chinese side will organize a China-CEEC high-level radio and television seminar; China and the Czech Republic will jointly produce a cartoon entitled Panda and Mole. (12) China and CEECs are ready to make more contribution to facilitating mobility of people. (13) Support Chinese and CEEC localities in taking an active part in exchanges and cooperation in all fields under the China-CEEC cooperation framework, properly run the China-CEEC Association of Governors of Provinces and Regions and make it the most important platform for China-CEEC sub-national cooperation. Welcome the inclusion of sub-national cooperation as an important agenda item of the China Investment Forum. (14) The 3 rd China-CEEC Local Leaders' Meeting will be held in Hebei Province, China, in (15) Strengthen information sharing and exchanges under the China-CEEC cooperation framework. 8. Support the convocation of the 1 st China-CEEC health ministers' meeting in the Czech Republic in The Chinese side will work with interested CEECs to select proper locations to set up TCM centers. The Chinese side commends the efforts of the Czech Republic to cover TCM under its national health insurance system. 9. The Secretariat for Cooperation between China and Central and Eastern European Countries will organize a trip to China for senior CEEC officials in Source: Royal Roots Global Inc. All Rights Reserved. 22