Sino-Serbian relations under the “microscope”: China’s footprint In Serbia

Over the years, the Sino-Serbian foreign relations have straightened to a very high level, with China establishing itself as a valuable ally to Serbia. Since the recognition of the People’s Republic of China in 1949 by Yugoslavia and the formal establishment of diplomatic relations between the two states in 1955, both countries have been on warm relations that soon transformed into a strategic alliance. However, this relationship has given an uneasy feeling to the political elite in the West that sees this relationship as China’s efforts to expand its influence into the Balkan region and undermine the efforts of the EU for stabilization. On the other hand, some may argue that this uneasy feeling that the West is experiencing is due to its own failures of constant neglect and poor leadership towards Serbia, which has taken action in its own hands. Can we really say that the situation in Serbia is about Chinese imperialism, or is it a case that the West failed Serbia over and over again and now sees its diplomatic failures backfiring back to them?

Sino-Serbian relations in retrospective

The relationship between both countries has always been on a warm status, but the potential for an even stronger relationship came during the 1990s in the so-called Yugoslavian Wars. The People’s Republic of China was critical against the U.S and NATO forces bombing campaign in Serbia while it supported the decisions of President Milošević, describing them as vital decisions for preserving the territorial integrity of the Federal Socialist Republic of Yugoslavia, against the Albanian separatists and the UCK (Kosovo Liberation Army) terrorists. The opposition against NATO intensified after NATO warplanes bombed the Chinese embassy in Belgrade, killing three Chinese journalists. Although the West saw it as a mistake, this gave a clear signal to Serbia and China that the Western aggression against them could provide them with the potential of rebuilding their relations in the 21st century, in something more than just strong diplomatic ties.

Under the presidency of Aleksandar Vučić, Serbia has seen closer cooperation with China, especially at an economic level. For years now, both countries have cooperated in various industries. Since 2012, Serbia has received at least $10bn of Chinese investment in the country, changing rapidly its economic profile. Serbia is also part of China’s Belt and Road Initiative, which allowed Serbia to provide an investment-friendly environment towards China without any EU regulations, making the country the largest economy in the Western Balkans. Also, China has changed the tourism industry in Serbia. Since 2017, Chinese citizens can visit Serbia visa-free. This initiative allowed the country to improve its industry with a rise of at least 36% from Chinese visitors. Also, Serbia as a hub of investments does not only concentrate on tourism. China has invested a tremendous amount of money in its infrastructure and energy sectors and projects such as the Budapest-Belgrade Railway while Chinese firms have acquired various steel plants and coal mines, such as the Smederevo steel plant and a copper mine is in Bor, east of Serbia. These actions by China have kept afloat the Serbian economy while saving more than 10.000 job positions, highlighting the reconstruction of the country and making China the most important trading partner for Serbia in the 21st century.

Politics, the pandemic, and the success of Serbia in the game of geopolitical chess

Apart from close economic ties, both countries share a common interest in the political arena. Since the 1990’s China has been a close political ally of Serbia, supporting its territorial integrity while not recognizing the pseudostate of Kosovo. On the other hand, Serbia has been supportive of China’s decisions to safeguard its interests in Hong Kong, Taiwan, and Xinjiang, agreeing with the One-China policy that the People’s Republic of China has been advocating for years. The relationship between the two countries has been seen negatively by the West, with the EU being skeptical about China’s intentions in the region. A resolution from the EU parliament on the 2019-2020 Commission report on Serbia expressed the concern over the increased economic ties between the two states, and China’s questionable investments that are lacking transparency, while also pointing out that the investors in Serbia have failed to carry out important environmental assessments. “With this behavior, Serbia, a candidate country for EU accession is jeopardizing its progress”, were the statements from the EU side, that sees the growing influence of China in the region, as a threat to its own interests. However, Serbia is not bowing to the threats of the EU, as it sees the European bloc constantly neglecting Serbia’s needs and undermining its national interests.

With the inclusion of China as a major player in the Balkans, some analysts present an interesting argument that China has overthrown the Russian Federation from the position of the most important ally of Serbia. Historically, Russia and Serbia have seen very close ties, and it’s unlikely that the inclusion of China as an ally to Serbia will jeopardize that. However, news organizations and analysts from the West found an opportunity to provide an environment of division within Serbia. Understandably, Serbia seeks to improve its position in the world, and having more than one powerful allies, especially one that has the fastest growing economy in the world, will benefit the rhetoric of Aleksandar Vučić, who has demonstrated to the Serbian public that the country has drastically changed and it has overcome the previous humiliations and mistreatment from the West. It seems that the West is terrified of the potential growth of Serbia, a country that once was brutally bombarded by U.S and NATO forces, and now has the chance to dominate the geopolitical scene in the Balkans without even being part of the EU. The country represents an open door for China in Europe, allowing the country to fully take advantage of the various infrastructure and energy projects that are presented. Serbia is building a new lasting alliance, and as much as the West wants to undermine this relationship by creating political divisions about who is the biggest ally of Serbia, they miss the big point. The country now has more allies and more influence in the Balkans and feels it’s time not to take the West seriously. For years the EU, in particular, has underestimated Serbia while showing full support for the illegitimate state of Kosovo, and portraying the country as this evil entity and abuser of human rights.

Another important parameter in the evaluation of the current situation in the world. When COVID-19 spread all over the world, we witnessed a phenomenal collapse of our daily lives, with many businesses closing and the governments around the world putting an effort to recover from the virus. Serbia, unlike other countries in Europe, had a successful vaccination campaign and managed to win the geopolitical game of chess, simply by not playing the game. For Serbia, vaccination was never a political game and that’s why they managed to deal with it better. As prime minister Ana Brnabic stated: “Whether vaccines come from China, Russia, the EU or the U.S, we don’t care, as long as they’re safe and we get them as soon as possible. For us, vaccination is a healthcare issue, not a geopolitical matter”. Just by this statement, Serbia managed to understand the dangers of politicizing the vaccines and decided to focus on the health of its citizens, effectively overcoming the growing danger of the virus.

The fight is not over yet, but unlike the EU, Serbia set its priorities straight, and in a way, revealed the failed bureaucratic system of the EU, that chooses politics over the health of its citizens. Although Serbia received both the Russian vaccine Sputnik V and the Chinese Sinopharm, analysts have focused on the importance of Chinese help. For the simple reason that the help from Russia was expected, because of the historic, cultural, and religious ties between both states. The help from China was something that shifted the balance in Serbia, and the country managed to be in a better position compared to other countries in the Balkans and the EU. Both China and Serbia made it clear from the beginning that they will support each other in these harsh times. A few months ago, the Serbian Minister of Foreign Affairs, Ivica Dačić, was in Beijing, declaring his support in any way possible to China. In his statement, he said: “You didn’t fear NATO bombs, my visit shows we’re not afraid of the virus”; again pointing out the importance of this alliance that dates years back. The EU might be skeptical about China’s intentions, but one thing is for sure; they did not provide help when needed, proving once again that European solidarity is a fairy tale.

The Chinese impact on Serbia: Voices from within the country

Although the government of Aleksandar Vučić has made it very clear to the Serbian public that foreign investments from China are a positive step towards the socio-economic transformation of the country, some people within Serbia have shared their thoughts about whether this can bring a positive or a negative impact for Serbia. Dragan Djilas, the former mayor of Belgrade and president of the Freedom & Justice Party in Serbia, expresses his criticism of the political decisions of Aleksandar Vučić. In his view, democracy in Serbia does not exist anymore, and there is only one man to blame, Aleksandar Vučić. Djilas also points out that the growing relationship with China has been transformed into a dependent, one-way relationship, where China acts as a colonizer. “China operates in Serbia, the same way it does in the continent of Africa. It seems that now we have a new Big Brother”, referring to the new status quo, where Russia is not seen as the only powerful ally that Serbia can rely on. For Mr. Djilas, this dependency on China will only jeopardize any potential ascension in the European Union. His point is shared by many within Serbia that see this dichotomy in society that wants to move more on the West yet again it makes agreements and treaties with a non-democratic and autocratic government, and it seems that Aleksandar Vučić follows the same path. “Our struggle is focused on Europe, which should finally realize that we want to establish a free and democratic society and end the denigrating process in Serbia established by Aleksandar Vučić”, were the words of Dragan Djilas, who sees China slowly overtaking his country.

On the other hand, Djordje Terek, an analyst at the Center for International Public Policy in Belgrade, does not see the involvement of China in the Western Balkans, especially in Serbia, as a new phenomenon. “China, similarly to Russia, Germany or the U.S., has its own interest in the Western Balkans region and it has been present there for a while”. If we view this statement from a realistic point of view, we can make sense of China’s intentions in Serbia being no different than the intentions of any other country that revolves around the philosophy of realpolitik. Also, there is an interesting mention of Serbia’s new role in the region, especially after the Belgrade Summit. As Terek points out: “Serbia, as a potential EU member state, was given a prominent role within China’s BRI initiative as it was demonstrated at the summit in Belgrade. It is the strategy based on the penetration into the EU market that China centralized around Belgrade. With that being said, Serbia is one of the compelling China’s attributes in the Western Balkans and Europe as well. In 2009, Serbia and China signed a strategic partnership agreement and in 2013, Serbia hosted a 16+1 summit in Belgrade where $900 billion infrastructure projects were promised to the region”.

However, although the government of Aleksandar Vučić is keen to demonstrate how China’s investments have been crucial for Serbia, the European Union is still by far the most crucial contributor in foreign direct investments, comprising at least 70% of FDI in the country. With this remark, some may argue that indeed China is an important ally to Serbia, but the EU is still around, reminding the country that it is still a pending member for EU accession. It seems that the presence of China in Serbia will only be positive if Aleksandar Vučić manages to balance both of his commitments to the EU and China. After all, Serbia still wants to be part of the European Union and not merge with the People’s Republic of China. In some final remarks, Djordje Terek thinks that if the government of Serbia wants any success to come out of this situation it needs to evaluate the situation delicately. “While Serbia has been actively pursuing EU membership, the current state of affairs tells us that Vučić uses the geopolitical window to further deviate from EU integrations, while continuously sitting on two chairs, and only time will show if that will be beneficial for Serbia”.

One other aspect of China’s involvement in Serbia, that has troubled the citizens of the country, are the environmental issues that have emerged since China’s increased investment in the steel factories and the mines in the east of the country. In the area of Bor, where a Chinese company has recently acquired the ownership of a mining facility, there have been reports of increased pollution in the area, with environmental agencies being concerned about the high levels of sulfur dioxide and arsenic in the air. Besides the air pollution issue, concerns have been raised about the water pollution of the area. Near the mining facility, in the village of Metovnica, locals have seen the impact of the mine activities, in shortage of water and water pollution. For analyst Djordje Terek, this increased pollution in the area rapidly plummeted in the last seven years, potentially making Serbia the global leader in air pollution. “The Chinese investments in the steel factory in Smederevo and the copper mine in Bor, have made the people in the area wear face masks even before the beginning of the pandemic. It seems that the ties of the Serbian government with China is on higher priority rather than the environmental damage”. The mayor of Bor, Aleksandar Milikic, quickly dismissed the allegations of environmental damage and characterized any kind of protest in the area regarding this subject as the work of political actors wishing to benefit from it. As for the people in Bor, they can see the damage to the environment, but many of them point out the positive aspect of the Chinese investments, where people can find a good-paying job at the mines. Given the absence of work in the area in recent years, these investments have more positives than negatives for them.

Whether we would look at the Chinese involvement in Serbia as a positive or a negative thing, one thing is for sure. The geopolitical profile of the country is changing, and Serbia can benefit from the increased investments in its country. However, Aleksandar Vučić must be careful how he handles the situation inside Serbia. The increased protests and the uneasy feeling of its citizens regarding the environment, should not be aspects that are overlooked by the government, Nevertheless, with the global pandemic devastating many countries in Europe and around the world, Serbia has demonstrated its will to improve the healthcare situation in the country by not focusing on the vaccine politics and as a result winning, one might say the political chess game that the West found itself playing. Only time will show if Aleksandar Vučić manages to hold on, on both the West and the East, in a rare situation where Serbia seems to have the upper hand as to how the country must advance now, trying to reshape the international image about Serbia.

Nikita Triandafillidis
Nikita Triandafillidis
Bachelor's Degree in International Relations & Political Science. Columnist focusing on Global Affairs