Chinese investment in balkansa

For the smaller Balkans states especially, this represents an enormous investment in their economies. The Balkans has been a focus of China as an extension of the BRI in Europe, and its presence is visible in almost every corner of the region. According to Freedom House measurements, Serbia, Montenegro, and Bosnia and Herzegovina all saw a decline in their freedom index from to

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Please contact customerservices lexology. The project aims at boosting trade and stimulating growth across Asia and beyond, and pushing forward the economic transition from basic manufacturing to high-end manufacturing. China is attempting to achieve this goal by financing country-based and cross-border infrastructure investments in Central and South-Eastern Europe to enhance trading with the region, and further using this as a gate to the Western European market. In order to materialize the Initiative, China is financing transport and energy infrastructure in the SEE region, establishing trade links, and making direct investments. When it comes to infrastructure, China signed chinese investment in balkansa memorandum of understanding with Hungary and Serbia inin order to build a high-speed rail connecting Belgrade and Budapest, which will help Chinese-manufactured goods pass through Eastern Europe into Western Europe. Foreign direct investment occupies a huge portion of the Initiative. China is creating a sea shipping route from the Piraeus port in Greece through the Balkans to European Union markets, by investing in the Piraeus Port Authority.

Construction of bridge columns of a new highway through the Moraca canyon in Montenegro, aerial view. The geo-economic implications of the project from China are vast and long-term. The Balkans has been a focus of China as an extension of the BRI in Europe, and its presence is visible in almost every corner of the region. But what is driving Chinese investment in the Balkans? Firstly, labour costs in the region remain low. For the smaller Balkans states especially, this represents an enormous investment in their economies.

Please contact customerservices lexology. The project aims at boosting trade and stimulating growth across Asia and beyond, and pushing forward the economic transition from basic manufacturing to high-end manufacturing. China is attempting to achieve this goal by financing country-based and cross-border infrastructure investments in Central and South-Eastern Europe to enhance trading with the region, and further using this as a gate to the Western European market.

In order to materialize the Initiative, China is financing transport and energy infrastructure in the SEE region, establishing trade links, and making direct investments. When it comes to infrastructure, China signed a memorandum of understanding with Hungary and Serbia inin order to build a high-speed rail connecting Belgrade and Budapest, which will help Chinese-manufactured goods pass through Eastern Europe into Western Europe.

Foreign direct investment occupies a huge portion of the Initiative. China is creating a sea shipping route from the Piraeus port in Greece through the Balkans to European Union markets, by investing in the Piraeus Port Authority. China has also made other significant investments in the corporate sector — Mei Ta Group, a company that produces engine and automotive parts, opened a new plant in Serbia.

As for equity investment, China has created two funds for investment in Eastern Europe. The two investments are expected to bring about improvements in infrastructures, development of the energy sector and increase in employment in the region.

Despite all the positive predictions, it is uncertain to what extent the Belt and Road Initiative will benefit South-Eastern Europe. Besides, there is a chance that the projects under the Belt and Road in non-EU countries will slow down the accession process for EU candidate countries. This is because the China-backed investment projects may violate EU law and chinese investment in balkansa policies, by requiring Chinese companies to be the main contractors and Chinese labour to implement the projects.

The Belgrade-Budapest railway project is one of the examples. To secure continuous investment from China and to maintain sustainability of the economy, the EU has given several suggestions to Serbia, including increasing efficiency of the energy sector and targeting active labour market measures to vulnerable groups and introduce dual learning in education. If you would like to learn how Lexology can drive your content marketing strategy forward, please email enquiries lexology.

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Why is CHINA investing in the BALKANS? — VisualPolitik EN

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The Balkans has been a focus of China as an extension of the Imvestment in Europe, and its presence is visible in almost every corner of the region. Geopolitically since the global economic recession and subsequent migration crisis, leaders in the Western Balkans perceive that the West is internally focused and consumed allowing China to assume a more prominent global economic role. Apart from SerbiaChina is also making large investments in other parts of the Balkans too, namely in infrastructure and energy. According to Freedom House measurements, Serbia, Montenegro, and Bosnia and Herzegovina all saw a chinese investment in balkansa in their freedom index from to ABC Ben Gittleson. In the News. The Western Balkans represent fertile soil, characterized by economic stagnation, weak governance, corruption, and high unemployment rates on which BRI and Chinese state-owned blakansa can easily put down roots. View all content by this expert. Give us feedback. Conley In the News. December 8, This year, a number of top officials from the Balkans made the lengthy trip to Beijing. Only North Macedonia and Kosovo earned small improvements, but all 5 countries scored between 53 and 65—with being the freest and 0 the. Skip to main content. Is China able and willing to use its ever-growing investments in the Balkans to expand its political chinese investment in balkansa An hour east of Belgrade, China financed and expanded a coal power plant that environmental and health advocates warn will saddle Serbia with a polluting power source for decades. Xi Jinpingthen China’s vice president, was on a European tour, gathering experience in foreign investmen as he was moving on to the pinnacle of power.