Small State, Big Partner: Montenegro’s Economic Cooperation with China

Introduction with Historical and Diplomatic Background

Situated at the southern part of the Adriatic coast， Montenegro is a small country in size but is gaining importance in international economic and geopolitical affairs. Over the past decade， it has found itself balancing between the East and the West—aspiring to join the European Union （EU）， while staying open to global partnerships， particularly with China.

Through China’s Belt and Road Initiative， Montenegro has become a key point of interest in the Balkans， attracting significant Chinese investment.

Official diplomatic relations between Montenegro and the People’s Republic of China were established in 2006， shortly after Montenegro regained its independence. Initially modest， the relationship grew stronger over the following decade. A major step came in 2012 when Montenegro joined China’s platform designed to enhance collaboration with Central and Eastern European countries.

For Montenegro， which has been recovering economically from the post-independence transition and the global financial crisis， Chinese projected investment can offer both financial support and international visibility. Beijing’s appeal to Podgorica was clear： unconditional financing， quick project implementation， and a non-interventionist approach in domestic politics.

Investments and Economic Impact

At the heart of the Montenegro-China economic relationship is one major project—the Bar-Boljare highway. This road， designed to connect the Adriatic coast to Serbia and the wider Balkan region， has become one of the most prominent Chinese-backed infrastructure projects in Southeast Europe.

The first section， a 41 km stretch from Smokovac to Mate?evo， was financed with an € 809 million loan from Export-Import Bank of China. China Road and Bridge Corporation was the main contractor. The Montenegrin government contributed 15% of the funding， with the rest covered by the loan.

Before the highway project， China’s involvement in Montenegro was also present in the maritime sector. Montenegro commissioned the construction of two cargo ships for the state-owned shipping company to be built in Chinese shipyards by China Poly Group Corporation. These vessels， operating in international waters， signal the onset of Chinese cooperation with the aim of expanding beyond the sea into the land infrastructure. Other areas of cooperation have included telecommunications， energy infrastructure， tourism and cultural exchanges.

Despite concerns about debt and dependency， Montenegro has gained tangible economic benefits from its cooperation with China， especially in infrastructure development and building state capacity.

For a small country undergoing transition， Chinese-style financing—fast， large-scale， and without political strings—has allowed Montenegro to move forward with projects that might have remained on hold under Western frameworks.

This partnership has also helped Montenegro raise its international profile. In a world no longer dominated by a single power center， the ability to work with diverse partners， including China， is becoming a strategic advantage.

Looking Ahead

Montenegro’s relationship with China is expected to deepen in the coming years and could become a central part of its long-term development strategy. While EU membership remains a symbolic and political goal， many in Podgorica see China as a more responsive， less conditional partner when it comes to practical needs.

In recent years， the perception has grown that EU integration is a slow and bureaucratic process， which is often tied to political preconditions and reforms. In contrast， China’s focus on efficiency， funding and sovereignty has enabled Montenegro to launch long-stalled infrastructure projects.

This shift toward China reflects a pragmatic direction in Montenegro’s foreign and economic policy. Through Chinese financial assistance， engineering expertise， and logistics support， the country has accelerated its modernization in ways that Western partners have struggled to match.

In the future， Montenegro may seek to formalize a broader strategic partnership with China—expanding trade， tourism， and educational exchanges. To make the most of this cooperation， Montenegro will need to strengthen its institutions and ensure that investments are financially sound and aligned with national priorities.

Unlike in the past， when reforms were mainly driven by the EU requirements， future governance improvements may come from domestically driven vision—shaped by our own needs and aligned with the requirements of Chinese cooperation rather than external political conditions.

In this light， the Montenegro-China relationship could become a representative model of South-South cooperation： development guided not by rigid conditionality， but by mutual interest， pragmatic diplomacy， and a multipolar world.

Conclusion

Montenegro’s engagement with China marks a clear shift toward a more pragmatic development strategy. While the country remains committed to European integration， its growing ties with China reflect a recognition of the real-world benefits that Eastern partnerships can bring—especially for smaller states with big infrastructure goals.

Chinese investment projects aren’t just isolated initiatives. They signal a broader geopolitical shift， where China acts not only as a financier， but as a genuine development partner.

Montenegro’s openness to working with both East and West represents a new kind of strategy—one based on flexibility， not exclusivity. It’s not about choosing sides， but about pursuing what works.

In the years ahead， the Montenegro-China partnership could serve as a blueprint for other emerging economies—showing how global cooperation based on mutual respect and shared goals can bring real results. For Montenegro， it’s a bold step forward—not as a passive recipient of aid， but as an active player in shaping its own future.

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Gligo Tomanovic is Executive Director of the local TV and radio broadcaster Radio Television Herceg Novi， Montenegro