Weekly Briefing, Vol. 69. No. 4 (BG) January 2024
75 Years Bulgaria-China Diplomatic Relations
Evgeniy Kandilarov
Summary
This year Bulgaria and China celebrate 75 years anniversary since the beginning of their diplomatic relations. Since the beginning of the Belt and Road Initiative Bulgarian government started trying to be driven more by the economic pragmatism. Politically, the past ten years have seen a significant rapprochement between Bulgaria and China. The framework of bilateral cooperation deepened, culminating in 2019 by the signing of a declaration that upgraded relations to a ‘strategic partnership’. Today, relations between Bulgaria and China are quite sustainable. They develop mainly in the field of economy, culture, education and research exchange. Unfortunately, much of the potential that exists in these, and other areas of bilateral relations remains not fully used.
This year Bulgaria and China celebrate 75 years anniversary since the beginning of their diplomatic relations (as most of the CEEC). Over the years these relations went through different stages of ups and downs. There have been times when the two countries have been ideologically and politically very close followed by periods of getting distant and then back having close and active relations again.
Within this relatively long period of bilateral relations we can clearly distinct the following stages of the relations which are having very different internal characteristics. From 1949 to 1960 – very close relations with spirit of mutual trust and friendship; from 1960 to 1980 – distant and cold relations under the spirit of Sino-Soviet Split; from 1980-1989 – slow but gradual warming of the relations with its peak in the second half of the80s; from 1989 until 1998 – time of mutual neglect; from 1999-2008 – both China and CEEC started to find its place in international arena; since 2009 – until now – the relations are running within the framework of the BRI and China-CEEC cooperation mechanism. This last period of relations between Bulgaria and China shows a significant expansion and intensification of contacts, dialogue and cooperation between the two countries at various levels, which gave reason for the bilateral relations to be officially declared “strategic” in 2019.[1]
Bulgaria was the second country in the world to recognize the People’s Republic of China on October 3, 1949. The bilateral relations between Bulgaria and China during the Cold War, like the Soviet-Chinese ones, went through polar opposites – from friendship between “two fraternal peoples” to mutual attacks and abuses. At the end of the 1980s, Bulgaria was attempting a turn and a new approach to the PRC from completely different, entirely pragmatic positions which led to a new gradual rapprochement between the two countries, but from a purely pragmatic standpoint.[2]
The year of 1989 is a turning point in the history of Bulgaria as well as all CEEC and its consequences had a long standing impact on Bulgaria-China relations.
During the first two decades after the end of the Cold War China was not a priority of the Bulgarian foreign policy which was focused mainly on the Euro-Atlantic Integration of the country.[3]
Since the start of the BRI in 2013, this tendency gradually changed. In the last ten years Bulgaria has been actively involved in China’s initiative for Central and Eastern Europe “16 + 1” and the relations between the two countries developed relatively well, based on a non-ideological, pragmatic approach that considers objective realities and the opportunities of these relations politically, economically and culturally.[4]
As a result, Beijing has significantly expanded its cooperation with Bulgaria both on national and mostly on at the subnational level in areas such as culture, education, agriculture, research, public procurement and e-government.[5]
Political dialogue between Bulgaria and China
In the middle of the second decade of the 21st century, political contacts and economic cooperation between Bulgaria and China had an intensive and sustainable development. This is evidenced by the visits at the highest level. In 2014, Bulgarian President Rosen Plevneliev paid an official visit to Beijing, and in 2013 and 2015, two Bulgarian Prime Ministers – Plamen Oresharski and Boyko Borisov – made working visits to China, accompanied by other ministers and many representatives of leading Bulgarian companies that were interested in doing business with China. In 2018, the Chairman of the State Council of the People’s Republic of China, Li Keqiang, paid a return visit to Sofia. In 2013 and 2016, two Chairmen of the Bulgarian Parliament (Mikhail Mikov and Tsetska Tsacheva) visited China, and in 2018 the Chairman of the Standing Committee of the Chinese People’s Congress, Cao Jianming, visited Bulgaria.[6]
The visit of the Bulgarian President Rumen Radev to China in early July 2019 was a kind of peak in the bilateral relations after the organization of the Seventh Summit in the 16+1 format in Sofia (July 7, 2018). During his meeting with the Chinese President Xi Jinping on July 3 in Beijing has been announced a joint declaration raising Bulgaria-China bilateral interstate relations to the level of “strategic partnership”. As part of his visit to China, Bulgarian President Radev participated also in the 13th World Economic Forum (the “summer Davos”) in the Chinese port center of Dalian.
Economic relations between Bulgaria and China
Bright evidence of the continued upward development of bilateral China-Bulgaria relations for the last several years is the trade volume as well as the data on investment projects. After a certain decline in the volume of bilateral trade in 2016 compared to the previous five years, in 2017 it exceeded two billion US dollars for the first time. Despite the widespread closure of communication trade corridors during the global COVID 19 pandemic crisis, in 2021 bilateral trade was already close to three and a half billion dollars, and in 2022, according to Bulgarian data statistics, it exceed four billion dollars.[7] At the same time, however, Bulgaria’s trade deficit has quadrupled over the past few years, and Bulgarian exports are severely limited to ore raw materials (over 70%) and primary agricultural products (corn and sunflower). In 2023 the first three positions in Bulgarian exports – corn; copper ores and their concentrates; pomace and other solid residues obtained from the extraction of vegetable fats or oils – form nearly 66% of the total exports to the Chinese market.[8]
For the last year (2023), China ranks 2nd in both Bulgarian exports and imports to and from third country markets.
In last ten years, Bulgarian companies made a breakthrough in the Chinese market in several commodity groups, including grains, wine and beer, as well as marble, where the values of exports increased significantly. For example, for the first time, Bulgarian beer reached the Chinese market directly.[9]
At the end of 2022, Chinese investments in Bulgaria amount to 154 million euros, which is an increase of 17% compared to the previous year 2021.[10]
The available data for the first 6 months of 2023 shows that the Chinese investments grew by 7.3 million euros, i.e. total invested funds (cumulative) from China in Bulgaria as of June 30, 2023 amount to EUR 161.3 million.[11]
Unfortunately, China has failed to establish itself as a major investor in Bulgaria, and statistics show that it is not even among the top 20.
However, China is pushing for more cooperation at the micro level than at the intergovernmental level. For example, Bulgarian municipalities and non-governmental organizations such as agricultural institutes and universities welcome the prospects for the development of mutually beneficial economic cooperation. A recently published study shows that a total of 7% of Bulgarian municipalities (19 out of 265) cooperate with China.[12]
In its cooperation with China, the Bulgarian side strives to attract serious Chinese investments in sectors in which our country has traditional advantages and those that provide high added value and increased competitiveness of the economy – mechanical engineering, automobile construction and production of auto parts, electronics and electrical engineering, information and communication technologies, agriculture and food industry, tourism.
The wish of the Chinese partners was with the support of the Bulgarian Chamber of Commerce and Industry, more Chinese companies to invest in the Bulgarian economy. As potential sectors were pointed the infrastructural facilities such as roads, railway infrastructure, export of high-quality agricultural products for the Chinese market. The Chinese government has budgeted USD 170 billion for the next five years, for the import of goods in line with the cooperation between China and the countries of Central and Eastern Europe. It is also planned to increase by 50% the export of agricultural goods from the countries of Central and Eastern Europe to China.[13]
The Bulgarian Chamber of Commerce and Industry (BCCI) has over 20 partners from China: organizations of businesses, the national chamber of trade and commerce, and regional trade councils. Each year, the BCCI welcomes several delegations of representatives of Chinese businesses and the government and organizes business to business and business to government meetings. For BCCI’s more than 52,000 members, the prospective areas of bilateral cooperation with China include trade, investment, and tourism. According to the analyses of the BCCI there is potential for diversification of the Bulgarian exports to China with wine, mineral water and other drinks, possibly under a single national brand. Attracting more tourists in both directions would further aid the bilateral relations’ development.[14]
In economic terms the cooperation potential between China and Bulgaria is relatively high. Bulgaria is situated at a transportation hub between the Eastern and Western states, with very good natural conditions, skilled manpower and relatively low cost of investment expenditure. Following the principle of mutual benefit China and Bulgaria could quite realistically link their business in areas of mutual interest and pursue joint development.[15] Low taxes, increasing consumption and strategic location are among the main reasons for Bulgaria to be considered as an important place for investments by the Asian entrepreneurs.
Unfortunately, Bulgarian exports are still limited to a small assortment of goods. However, there is a great potential for the expanding Bulgarian exports to China in the field of agricultural products and food, wine, mineral water, essential oils and cosmetic products, as well as high-tech products with high added value (chemical and pharmaceutical industry products, electronics products, machines and machine parts, etc.).[16]
In the past few years, China’s agricultural imports have increased at a tremendous rate, fueled by rapid economic growth and rising incomes of the Chinese population. China is emerging as the world’s largest and most lucrative food market. Bulgaria has the necessary potential to export agricultural products and food to the Chinese market. Furthermore, there is great potential for cooperation in the field of agriculture: the establishment of joint Bulgarian-Chinese companies to produce agricultural products in Bulgaria and export to China.[17]
There are also opportunities for the establishment of joint ventures in Bulgaria between Bulgarian and Chinese companies to produce goods with an export orientation to the huge European market. Prospective areas are electronics and electrical engineering, information technology and research and development, mechanical engineering, automotive, food industry, agriculture, pharmaceuticals, textile industry, etc.[18]
An important advantage for the development of trade and economic relations between Bulgaria and China is the activity of several key cooperation organizations, which contribute to a very great extent for the expansion of relations in the fields of trade, production, investment, tourism, as well as educational and cultural exchange. These China-oriented Bulgarian business organisations have been attempting to create and develop relations with Chinese companies and state institutions.
One of the most active in this regard is “Bulgarian-Chinese Chamber of Commerce and Industry” (BCCCI). It arranges, and invites Bulgarian businesses to participate in, various fairs and exhibitions in China and organizes presentations, information sessions, and other events on doing business in China with regional business associations in various cities around Bulgaria.[19]
Another key organization in Bulgarian-Chinese economic relations is “Bulgarian-Chinese Business Development Association”. It was established in Bulgaria, in 2015 as a non-profit organization, headed by Bulgaria’s former consul-general in Shanghai. It is a member of the Bulgarian Industrial Association and is committed to promoting cooperation between Bulgarian and Chinese businesses in areas such as industry, commerce, agriculture, economics, engineering, technology, and education. The association also provides professional training and promotes educational and cultural exchanges between the two countries. In 2016, the association signed a friendly cooperation agreement with the Chaozhou Chamber of Commerce and in 2018, it opened an office in Yiwu, China.[20]
The Bulgarian-Chinese Association for Business Development was the initiator and main organizer of the 2014 twinning between Chinese metropolis Shenzhen and Bulgarian city of Plovdiv.[21]
One more active organization in the field of Bulgarian-Chinese economic relations is the “Bulgarian-Chinese Chamber for Industrial Development” which is a member of Bulgarian Industrial Association.[22] It has signed a series of cooperation agreements with various trade promotion structures across China. The chamber has functioned as a point of entry for numerous Chinese companies interested in investment and has helped them engage with Bulgarian institutions.[23]
Another non-governmental organization that develops large-scale activities for the promotion of Bulgarian-Chinese relations is the “Bulgarian Center for Development, Investment, and Tourism in China”, established in 2012 by wine producer Ivan Todorov. Todorov is deeply involved in the creation of the Momchilovtsi yoghurt project as well as in numerous endeavours to develop ties between Bulgarian and Chinese universities, send Bulgarian students to China, and enhance cooperation on tourism.[24]
The Momchilovtsi yogurt project is one of the initiatives that become a driving factor for the promotion of Bulgarian culture in China, as well as strengthening Chinese tourist interest in Bulgaria. The Yogurt festival 2023 in the village of Momchilovtsi is being organized for the 6th time in a row. It started in 2015 as a joint project between the “Bulgarian Center for Development, Investment and Tourism in China” and the Chinese company “Bright Dairy” from Shanghai, which produces the Momchilovtsi dairy product popular on the Chinese market. The Chinese state giant Bright Dairy chose the name of a Bulgarian village of in the southern Rhodope mountains, Momchilovtsi, as the brand name for its popular yogurt drink. The company began production of its sweetened yogurt beverage in Shanghai in 2010. It promoted the Momchilovtsi brand through advertisements and for some time the Bulgarian connection has also been featuring in Chinese commercials, even though, due to Chinese taste preferences, Bulgarian yogurt starters are not used in the drink’s production. The Momchilovtsi drink has achieved annual sales of $100 million and is Chinese product with any sort of link to Bulgaria. In 2012, an official delegation from Bright Dairy visited the village, and then announced that they would work to promote Momchilovtsi in China. The Yogurt Festival was organized for the first time in 2015 as a Bulgaria-Chinese initiative under the patronage of Bulgarian Ministry of Tourism. About 1,000 people live in Momchilovtsi, and about 1,000 Chinese tourists come to the village every year, with a total number of guests of about 5,000-6,000.[25]
Two other recently established organisations – the Council on Economic and Diplomatic Relations[26] and the Bulgarian-Chinese Partnership Association[27] – also seek to develop economic, business, and investment ties between Bulgaria and China, although the main focus of their recent activities is the political and diplomatic dimensions of the bilateral relationship.
Bulgaria-China relations in the field of culture, media, education and research
Bulgaria-China cooperation in the field of education, science and culture also receives sustainable development recently. At the end of 2015 and in the middle of 2020, successive four-year agreements on cooperation in the field of education were signed between the Republic of Bulgaria and the People’s Republic of China.[28]
Up to this moment about 3000 Bulgarian students study Chinese language in various forms, and Chinese language and culture classes are held in 50 educational institutions in 14 cities of Bulgaria.
It is important to note that Bulgaria-China cooperation has already 75-year history resulted in many established direct contacts between educational institutions of both countries. Significant number of Chinese volunteer teachers are willing to teach in Bulgarian secondary schools. There is also a serious interest of Bulgarian candidates to study in China, as well as Chinese students to study in Bulgarian universities. In this way, the Agreement on cooperation in the field of education between Bulgaria and China for the period 2020-2023 is fully implemented.[29]
In recent years, there has been a serious exchange of students between Bulgaria and China. There is a very wide cooperation between Bulgarian and Chinese higher education institutions. According to the Agreement (2020-2023), every year about 25 Bulgarian students go to China for a full term of study in technical, economic and humanitarian specialties, and around 20 Chinese specialists who have completed their higher education at the Beijing Institute of Foreign Languages are accepted for a two-year specialization at Sofia University “St. Kliment Ohridski”.[30]
In the current academic year 2023-2024, the number of Chinese students in Bulgarian universities all around the country is 146, with the largest number being those who have chosen the professional education in the field of Music and Dance Art – 100 people. The number of doctoral students is 74.[31]
This year, a new Agreement for the next period (2024-2027) is to be signed, and the Bulgarian side hopes that even greater results will be reported in the coming years.
An important element of bilateral cooperation in the field of education and science are the “Confucius” Institutes at the Sofia University “St. Kliment Ohridski” and Veliko Tarnovo University “St. Cyril and Methodius” . They are educational and cultural centers which main activities are related to teaching the Chinese language and expanding the knowledge of people about the Chinese language and culture, developing friendly relations and developing international exchanges and cooperation between China and countries around the world in the field of education, science, culture, economy and other fields. Confucius Institute – Sofia is part of the global network of Chinese educational institutes, which number is already over 500 worldwide. It is also one of the first on the Balkan Peninsula and in Eastern Europe.
A total of 21 learning centers have been opened by the Confucius Institute in Sofia since its establishment in 2006, including seven Confucius Classrooms. These educational institutions with the study of the Chinese language are located in universities in Ruse, Plovdiv, Blagoevgrad, and in secondary schools throughout the country. Chinese language is studied in kindergartens, schools, universities, as well as in specially organized courses, and interest in the language is increasing.[32]
Chinese language is taught in Bulgaria not only at the academic level, but there is a serious presence of Chinese volunteer teachers who teach Chinese in Bulgarian secondary schools.
Positive development has been observed in the Bulgarian studies in China as well as in the Chinese studies in Bulgaria. The classes in the Center for Bulgarian Studies at Beijing University for Foreign Languages and the “Bulgarian Studies” major at Tianjin University with a bachelor’s program for studying Bulgarian are also successfully functioning in China. Tianjin University is the first university with such a major outside the capital Beijing.
Only for the last several years over 140 cooperation agreements have been signed between Bulgarian and Chinese universities, mainly for student exchange, joint research and publications.[33]
The activity of the Chinese cultural center opened on November 23, 2017 in the Bulgarian capital, the most significant such institution in Southeastern Europe, is also of great importance for China’s cultural presence in Bulgaria.
An extremely positive trend in the relations between Bulgaria and China is also the cooperation in the field of media, which has been demonstrated in the last year. On June 29 2023, the Union of Bulgarian Journalists and All-China Journalist Association signed a memorandum establishing a Bulgarian-Chinese Media Centre. The headquarters of the centre will be at the International House of Journalists near Varna.[34] The image of China in the Bulgarian media space is moderately positive without ideological negative comments. In a comparative perspective, public attitudes towards China in Bulgaria are rather positive-neutral compared to other countries in Central and Eastern Europe, as shown by international sociological surveys for several years in a row.
For many observers, the newly established Bulgarian-Chinese Media Centre has the potential to become a useful platform for exchange and cooperation, for contributing to mutual understanding and friendship between Bulgaria and China.
Conclusion
A characteristic feature of Chinese “network” and “public” diplomacy as an effective form of “soft power” for spreading “Chinese influence” in Bulgaria is focusing actions and initiatives from national to sub-national level with direct bilateral contacts with regional and local authorities and with more intensive links with non-governmental and civil organizations. At the political level, the Chinese side has shown remarkable flexibility in establishing formal ties with ruling political forces regardless of their ideological orientation.
Despite the existing foreign policy challenges related to the not too close and friendly relations between the EU and China recently, the trends observed in the relations between Bulgaria and China, especially in the sphere of economy, culture, science and education, are more than positive and outline promising future development.
[1] Kandilarov, E. 70 years Between Ideology and Pragmatism – Within the “Zig-Zags” of Bulgaria – China Relations from the Cold War Period to the Belt and Road Initiative – China And The World: Language, Culture, Politics, Volume 1, Sofia, 2020, 126-136, ISBN 978-954-07-5075-0.
[2] Kandilarov, Evgenij. Die chinesischen Reformen unter Deng Xiaoping und ihre Auswirkungen auf die bulgarischen Wirtschaftsreformen in den 1980er-Jahren – Jahrbuch für Historische Kommunismusforschung 2020. Machterhalt durch Wirtschaftsreformen. Chinas Einfluss auf die sozialistische Welt Metropol Verlag Berlin, pp. 89-104, ISBN: 978-3-86331-516-0.
[3] Kandilarov, E. China And CEEC Relations In The Past 40 Years: Achievements, Challenges And Prospect – Bulgarian Point Of View – Journal of Xi’an Jiaotong University (social sciences),2018,(6):76-82.[doi:10.15896/j.xjtuskxb.201806009], ISSN:1008-245x/CN:61-1329/c
[4] Kandilarov, Evgeniy, Dimitrov, Aleksander. Bulgaria-China Relationship: Between the National Development Strategy and Belt and Road Initiative – Yearbook of UNWE, University of National and World Economy, 2018, pp. 33-73, ISSN:1312-5486
[5] Kandilarov, Evgeniy. Bulgaria-China Relations in the Context of the Changing World – Challenges and Opportunities – WORKING PAPER, No. 13, December 2022, China-CEE Institute, Kiadó: Kína-KKE Intézet Nonprofit Kft. Szerkesztésért felelős személy: Chen Xin Kiadásért felelős személy: Feng Zhongping, pp. 1-18, ISSN: 2560-1628 2022, https://china-cee.eu/wp-content/uploads/2023/01/Working_paper-202213-Evgeniy-KANDILAROV.pdf
[6] Ibidem.
[7] https://www.mi.government.bg/foreign-economic-trade-policy/kitaj-2/
[8] Ibidem.
[9] Trade and economic parthnership between Bulgaria and China. Ministry of
Economy, Republic of Bulgaria, available at: https://www.mi.government.bg/foreign-economic-trade-policy/kitaj/
[10] Ibidem.
[11] Ibidem.
[12] Shopov, Vladimir. Let a thousand contacts bloom: How China competes for influence in Bulgaria – https://ecfr.eu/publication/let-a-thousand-contacts-bloom-how-china-competes-for-influence-in-bulgaria/, Policy Brief 10 March 2022.
[13] https://www.bcci.bg/news/19060
[14] https://www.bcci.bg/news/19986
[15] Търговско-икономически отношения между Република България и Китай. Министерство на Икономиката на Република България. http://www.mi.government.bg/bg/themes/kitai-192-333.html?p=eyJwYWdlIjo0fQ==
[16] Ibidem.
[17] Kandilarov, Evgeniy. Bulgaria-China Relations in the Context of the Changing World – Challenges…pp.13-16.
[18] Ibidem.
[19] https://bccci.net/about-us/
[20] https://www.facebook.com/SinoBG/?locale=bg_BG
[21] http://www.china-ceec.org/eng/sbhz_1/201610/t20161020_6578195.htm
[22] https://en.bia-bg.com/partner/view/558/
[23] https://bccid.com/
[24] https://bulgarian.cri.cn/301/2013/06/19/1s121288.htm
[25] https://kinsights.capital.bg/business/2017/12/14/4146011_the_momchilovtsi_shanghai_connection/
[26] https://cedr.bg/
[27] https://bulgaria-china.com/en/our-goals/
[28] https://web.mon.bg/upload/33600/BG-China-sporazumenie-DV57-2020_261022.pdf
[29] https://www.24chasa.bg/biznes/article/16788060
[30] Ibidem.
[31] Ibidem.
[32] https://www.bta.bg/bg/news/bulgaria/394111-obshto-21-uchebni-tsentara-e-otkril-institut-konfutsiy-u-nas-kitayski-se-uchi-v
[33] Ibisem.
[34] https://www.bta.bg/en/news/culture/483346-bulgarian-chinese-union-of-journalists-establish-bilateral-media-centre