China strengthens economic ties with Serbia, focuses on electric vehicles

Announced during a joint press conference in Belgrade, Serbian President Aleksandar Vučić and Chinese President Xi Jinping emphasized the significance of the deal, which is part of the broader Serbia-China partnership named “Shared Future”. The agreement aims to eliminate tariffs on nearly 95% of Serbia’s exports to China over the next five to ten years, spanning from agricultural products like apples to beef.

President Vučić hailed the agreement as pivotal for Serbia’s future, underscoring the robust and expanding relationship between the two nations. President Xi described the bilateral ties as “rock solid” and burgeoning “from strength to strength”.

The timing of this announcement is noteworthy, occurring amidst heightened political tensions between Beijing and the EU, exacerbated by allegations of espionage. Additionally, it contrasts with the EU’s contemplation of raising tariffs on Chinese electric vehicles to safeguard its domestic market.

Electric vehicles (EVs) are poised to play a central role in China’s expansion strategy in the Balkans. Victor Gao, Vice President of the Center for China and Globalization, highlighted the multifaceted nature of the bilateral relationship, noting that Serbia could emerge as a crucial manufacturing hub for EVs, thereby accelerating the transition from traditional fuel cars to electric ones.

Moreover, Gao stressed the importance of recognizing Taiwan as part of China in fostering a conducive environment for economic cooperation with Beijing, asserting that equality in diplomatic relations is paramount.

China’s engagement extends beyond Serbia, with significant ties also established with Hungarian Prime Minister Viktor Orbán’s government. Xi is scheduled to visit Hungary following his trip to Serbia, further cementing China’s presence in Europe and its commitment to expanding economic partnerships across the continent.