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Bojidar Lukarsky, Bulgarian Minister of Economy is on a panel discussion during the 4th Summit of China and Central and Eastern European Countries on Nov.24 2015 in Suzhou, east China's Jiangsu province. (Photo/Website of Ministry of Economy of Bulgaria)

BEIJING, November 25, (People's Daily Online) - Chinese companies can produce high value added products in Bulgaria with the development of industrial parks, said Bulgarian Minister of Economy in an exclusive interview with People's Daily Online in Beijing.

Bulgaria boasts political and financial stability, low risk of doing business and the lowest corporate tax rate (10 per cent) in the European Union. These make the country a major European logistics hub tied to the "Belt and Road" Initiative, Bojidar Lukarsky, Bulgarian Minister of Economy introduced after attending the 4th Summit of China and Central and Eastern Europeans Countries (CEEC).

In order to provide predictable and stable rules for Chinese enterprises, Bulgaria prioritizes the development of favorable investment environment and business climate, Lukarsky said.

Apart from the 10 per cent fixed corporate tax rate, enterprises that make investment in municipalities with high unemployment rate are exempt from tax.

According to Lukarsky, the country has the lowest labor and energy costs in the E.U. Benefiting from Bulgarian Investment Encouragement Act, enterprises will enjoy shorter administrative procedures, the possibility to purchase land owned by the State and by municipalities without a tender and they will receive government subsidies for staff training.

A member of CEEC and the E.U., Bulgaria enjoys strategic geographic location. Furthermore, the infrastructure connectivity turns Bulgaria into the East Gateway to Europe.

Due to its advantageous location, Bulgaria can reach all major E.U. destinations within 3 hours by plane and 24 hours by truck.

However, statistics from the Bulgarian customs shows that bilateral trade volume between China and Bulgaria decreased slightly by 0.8 per cent in 2014. According to the minister, the slowdown of the bilateral trade was mainly due to the decrease of the value of Bulgarian traditional export items like copper products.

In order to improve trade environment, Bulgaria aims at export diversification. Lukarsky said that agricultural and food industry, perfumery and cosmetics industry can bring vigor to bilateral trade.

During China-CEE leaders meeting, Bulgarian and Chinese enterprises have signed cooperation agreements for investments in the field of dairy, sunflower oil and rose oil production.

For the sake of financial cooperation between the two countries, Bulgarian Development Bank and the Industrial and Commercial Bank of China have signed a comprehensive and long-term strategic partnership on Nov. 25.