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China Belt and Road Initiative Journal: Research Analysis and Perspectives

ISSN 2515-9402

EISSN 2515-9410

Achievements and Challenges for China Investments in Serbia

Duško Dimit rijević

Volume 2, Issue 1, January 2019

Special Issue “16+1” Cooperation and Chinese Investments in Central and Eastern European Countries

Abstract:

In the last two decades, in a time of transition and transformation of a planned economy into a free
market economy, Serbia has almost lost its primary industry sector. In other words, the Serbian primary industry sector was largely “de-industrialized” although in the secondary and tertiary industry sectors maintained a certain vitality and development potential. Starting from the political changes of the year 2000, Serbia catches up with other countries in the region in the most important aspects of the transition process. In this sense, foreign direct investments have a significant impact on the Serbian economy, by improving economic structure and giving it new competitive qualities, increasing access to international markets, serving as a resource for improving the balance of payments and helping to accept modern technology, knowledge and management. It gives real hope that Serbia with the help of foreign capital will be able to re-industrialize their production and to restore and develop its industrial capacity. Serbia sees China as the most important foreign trade and financial partner in Asia and as a major partner in achieving its strategic economic objectives. Lack of financial resources needed for realization of the planned economic development goals, enables China to invest own financial resources on favourable terms using the Serbian market openness and good mutual relations permeated with mutual trust and benefits. For the proper understanding of Sino-Serbian relations, this study gives first short explanation of Chinese “New Silk Road”. Then, it includes analysis of the development of Serbian-Chinese political and economic relations (especially in the field of foreign investment). The final part of the study includes evaluation of comparative advantages and certain disadvantages for the Chinese foreign investment in the Serbian economy, which in itself has certain significance for the realization of the “New Silk Road” .

Content :

1. Introduction

2.  China’s “New Silk Road”

3. Development of Political Relations Between Serbia and China

4. Development of Economic Relations Between Serbia and China

(1) Chinese foreign direct investments in Serbia (IFDI)

(2) Chinese investment in transport infrastructure

(3) Chinese investments in the energy sector

(4) Chinese investments in the ICT sector

5. Achievements and Challenges for the Future Development of Economic Relations

6. Conclusions