Chinese President Xi Jinping’s trip to Europe this week has sparked skepticism among some observers who see it as an attempt to strengthen support in a region traditionally aligned with the United States. However, in Serbia, one of the countries on Xi’s itinerary, the focus is more on the potential economic benefits of closer ties with China. According to Forbes Serbia Editor Ivan Radak, local politicians and citizens view Chinese investment in areas such as infrastructure and business as positive developments that can spur growth and job creation. Radak noted that it is easier for Serbian leaders to initiate projects with China than to navigate the bureaucratic processes of European institutions.
With a population of 1.4 billion, China has been actively seeking opportunities for growth and influence around the world. In landlocked Serbia, Chinese investment has become a significant driver of economic development, making China one of the country’s largest foreign investors. Despite the vast difference in size and wealth between the two countries, their partnership has flourished, with both nations maintaining ties to Russia amidst geopolitical tensions. Xi’s visit to Serbia included meetings with President Aleksander Vucic and the signing of 29 agreements aimed at strengthening economic cooperation between the two countries.
Over the past 25 years, China’s investment in Serbia has surpassed that of all 27 European Union member states combined, solidifying the multifaceted nature of the bilateral relationship. Chinese companies like HBIS Group and Zijin Mining have made substantial investments in Serbia’s steel and mining sectors, creating jobs and boosting the country’s economy. Chinese auto parts maker Minth, controlled by billionaire Chin Jong Hwa, has also invested heavily in Serbia. Despite concerns about potential imbalances in the China-Serb Free Trade Agreement set to take effect on July 1, both countries stand to benefit from increased trade and economic cooperation.
Trade between China and Serbia has been growing steadily, with Serbian exports accounting for a larger share compared to previous years. However, there are differing opinions within Serbia about the potential benefits of the Free Trade Agreement, with some expressing concerns about the competitive advantages enjoyed by Chinese companies. Radak, a seasoned economic journalist with expertise in China-Serb relations, believes that a lack of information about the Chinese market hinders Serbian businesses from fully capitalizing on opportunities. Nevertheless, the overall sentiment in Serbia towards Chinese investment remains positive, as evidenced by the country’s welcoming attitude towards Chinese infrastructure projects.
Forbes Serbia, a licensing agreement between Forbes Media and United Media, provides valuable insights into the economic developments and business trends shaping the region. As China’s influence in Serbia and the broader European landscape continues to grow, it is essential for policymakers and businesses to navigate the evolving dynamics of this relationship. With investments in key sectors like steel, mining, and manufacturing, China is poised to play a significant role in Serbia’s economic future. As Serbia looks to harness the benefits of closer ties with China, balancing the opportunities and challenges of this partnership will be crucial for long-term prosperity and growth.
