EVALUATION OF COMPARATIVE ADVANTAGES AND TRADE BALANCE IN BILATERAL TRADE BETWEEN SERBIA AND CHINA

This paper analyzes the trade relations between the Republic of Serbia and the People’s Republic of China in the period from 2021 to 2025, with the aim of providing a detailed overview of the structure, competitiveness, and balance of bilateral trade in goods. The focus of the research is on understanding key trade patterns between the two countries, as well as identifying sectors with the greatest potential for improving economic relations. The study is based on a quantitative, descriptive analytical approach and includes the application of two mutually complementary international trade indicators: the Revealed Comparative Advantage (RCA) index and the Trade Balance Index (TBI). These indicators enable a comprehensive assessment of export specialization, as well as insight into whether specific sectors are predominantly export or import oriented. The data used in the analysis are classified according to the Standard International Trade Classification (SITC), ensuring consistency and facilitating comparison across different sectors. The research results indicate a pronounced structural imbalance in trade relations between Serbia and China, with Serbia continuously recording a significant trade deficit. The combined application of the RCA and TBI indices allows for precise identification of sectors with strong export potential, as well as those that are highly dependent on imports and require structural adjustments. The findings provide a relevant basis for formulating recommendations aimed at improving export competitiveness, diversifying the production structure, and reducing the trade imbalance between the two countries. In this way, the paper contributes to a better understanding of contemporary trade flows and the potential for further development of economic relations between Serbia and China.