Smartphones, computers, tools, clothing...
These are just some of the products originating from China that occupy an important place in the Kosovo market.
Recently, the United States imposed tariffs on goods imported from most countries in the world. Goods from China were hit with a massive 104 percent tariff.
While economics professor Mejdi Bektashi says that this trade war between the US and China could force Kosovar companies to replace Chinese products with other products, the owner of Elkos Group, Ramiz Kelmendi, says that he will continue to import from China, and even expects lower prices.
How important are goods from China for the Kosovo market?
Although China continues to not recognize Kosovo's independence, this has not hindered economic and trade cooperation between the two countries.
Official data shows that China is among the main importers in the Kosovo market, ranking third in terms of volume of goods, after Germany and Turkey.
Last year alone, out of the total import value of 6.3 billion euros, according to Kosovo Customs, over 748 million euros – or over 12 percent – were Chinese products.
On the other hand, Kosovo's exports to China have been small, worth 426 thousand euros, or 0.1 percent of the total export value, which is about one billion euros.
Exported products include ores, chrome concentrate, lawn mowers, and dresses.
Among the importing companies is the Elkos Group, within which the supermarket chain, ETC, operates.
Ramiz Kelmendi, the owner of this retail chain, tells Radio Free Europe that his company buys up to 12 million euros worth of products from China each year.
According to him, the reason for the cooperation is that many products are produced only in China and, due to the cheap labor force there, the price is more favorable for the Kosovo market.
"If they were produced in Europe or America, of course those would be our priorities. But, if someone from the European Union imports from China, assembles the products and exports them as their own, it falls to them that we are paying for the assembly. So it is more profitable for us to buy them directly in China, and our workers here do the assembly, this way we open new jobs and buy them cheaper," he says.
How will US tariffs on China affect the market in Kosovo?
On April 2, US President Donald Trump imposed a 34 percent tariff on Chinese goods, as part of a broader move to impose tariffs on most of its trading partners. Kosovo was slapped with a base tariff of 10 percent.
Two days later, on April 4, China retaliated with similar tariffs on American goods. Four days later, the US announced additional tariffs on China, reaching 104 percent, and asked China to withdraw its measures. On April 9 – when the US tariffs on China and other countries began to take effect – Beijing announced an increase in tariffs on American goods from 34 to 84 percent.
These developments mark an escalation of the trade war between the world's two largest economies. This clash will have consequences not only for the US and China, but also for the entire global market, including Kosovo, says Mejdi Bektashi, professor of economics at the University of Pristina.
Given that Kosovo continues to be dependent on imported goods, he says, the country will find it difficult to avoid the consequences of these tariffs.
Bektashi says the new tariffs will cause a new wave of inflation, which will affect not only the US, but also Europe.
"By implementing tariffs, the burden will fall at the end of the chain, to consumers. Consumers all over the world, including those in Kosovo, will buy Chinese products up to 40 percent more expensive than they currently pay," he tells Radio Free Europe.
To avoid these prices, Bektashi says that Kosovar companies should focus on other European Union markets.
"In this context, alternative markets will be easier to find and will offer higher quality products, but also at higher prices. The biggest loser from these tariffs will be China, as well as some Asian countries with rapid economic development, such as India and Vietnam," he emphasizes.
Meanwhile, Ramiz Kelmendi from Elkos Group, who previously held the position of Deputy Prime Minister in the Government of Kosovo, believes that his company will continue to import from China even after the imposition of tariffs by the US.
He believes that the new tariffs on China will have an impact on reducing product prices.
"Since China exports a lot to the US market, after the impact of the tariff, the amount of products for this market will be reduced and the products will be oriented to other markets. China will not stop production, but competition will increase and this will bring about a reduction in prices for other markets," says Kelmendi.
Unlike other Western Balkan countries, China has not made any capital investments in Kosovo. Cooperation between the two countries remains at the level of import and export of goods.
Diplomatic relations between Kosovo and China
China does not recognize Kosovo's independence, but respects, as it says, the territorial integrity of Serbia, which, by its Constitution, still treats Kosovo as part of its territory.
For this reason, the two countries do not have diplomatic relations, but China has a liaison office in Kosovo, which operates under the Chinese Embassy in Belgrade.
If Kosovo citizens want to visit China, they must obtain a visa, which they can apply for at the Liaison Office in Pristina. The visa is processed at the Chinese Embassy in Belgrade.
Similarly, Chinese citizens, except those with diplomatic passports, who wish to visit Kosovo must have a visa and can obtain it at the Kosovo embassies in Albania or Turkey./ REL (A2 Televizion)
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MUND TE LEXONI GJITHASHTU
