Beijing’s presence in the Western Balkans is an issue that Brussels must address soon. The lack of investment in this region by the European Union, let China complete this part of the puzzle. China’s ability to pursue these great investment opportunities lies both in the weak investment climate in the Western Balkans and in shifting the geostrategic environment. Although the Chinese government does not have intention of influencing the foreign policy of the countries in Western Balkans, it all looks like a bilateral agreement between them.
Indeed, the Western Balkan countries are not China’s main interest politically, but their proximity to the European Union, because there is a big market for China. Container of goods travel by the sea from China to the port of Piraeus in Greece, from where they are transported by train and by the sea, to cross into northern Macedonia, Serbia, Hungary and the Czech Republic, this was achieved after an agreement signed in November 2019 between Greece and a Chinese freight transport company.
In 2017, Serbia and China established a free-visa regime for short-term visitors which enabled many citizens from China to visit Serbia and work in the Serbian market. According to official statistics in Serbia, 144,961 Chinese tourists visited Serbia during 2019. Also in May of 2020, during the period of confrontation with COVID-19, the Chinese government sent a train with medical supplies straight from Wuhan to Belgrade, Serbia. Both countries then considered the possibility of having a permanent regular railway line.
Just a week after Serbia signed an agreement at the White House in Washington, not to buy 5G equipment from untrusted vendors, Huawei opened the Innovations and Development Center in Belgrade, in the presence of Serbian Prime Minister Brnabic and the Chinese ambassador in Belgrade. According to Reuters, China has secured billions of euros in soft loans for infrastructure and energy development in Serbia. This shows that Serbia is currently China’s main strategic partner in the Western Balkans.
Unlike Serbia, Kosovo in the field of security and technology is oriented towards western. Kosovo has already installed screening and information systems of US standards along with those of EU. The new State does not seem to be a major attraction for investment from China, this may have been influenced by the fact that Beijing does not yet recognize Kosovo’s Independence even though China is not any strong opponents in the Security Council in the UN like Russia.
Northern Macedonia seems to have more pronounced reports than Kosovo. In addition to the power plant built from an 80mln loan taken from China in 1994, co-operation with China has continued in the construction of the Skopje-Stip and Kicovo-Ohrid highways, for the construction of which China has lent Macedonia 580m euros as well as about 500m euros have also been given by China for the project related to the New Silk Road Initiative. Political communication from previous governments has been kept at a friendly level until in 2017, Prime Minister Gjorge Ivanov declared that Macedonia needs China as much as it needs the EU.
Albania’s oldest relations with China were established during the communist regime in the 1970s, but were later disconnected in the 1980s when communist leader Enver Hoxha accused China of taking the “revisionist path”. Nowadays, Albania is a member of NATO and has started negotiations for membership in the European Union, the political and economic scene in Albania is focused on towards the EU, but the impact of investments is also noticed by Beijing. So far, the most important connection between the two countries is in the oil field, but also the export of Albanian agricultural products to China.
In 2017, the Ocean Alliance of leading container carriers, within which China COSCO Shipping is the largest participant, included the Albanian port of Durrës in its network. The concession to operate Tirana International Airport held by China Everbright Group since 2016 has recently been extended to 2027 in exchange for an update of Kukës Airport to receive international flights. Relations between the two countries are not continuous and at a high level, but from time to time, since Albania is a member of NATO and on its right way to enter European Union, the field of security and technology is blocked for China, but sporadic investments in the economy and infrastructure are present.
The other country of interest to China due to access to the sea is Montenegro. Ten years ago, Montenegro borrowed over EUR 45 million from the Chinese Exim Bank to order two high-cargo transport ships, which were built by Chinese shipyards. Debt sustainability has been a major issue in Montenegro, emerging in the last few years without, however, dramatically changing attitudes towards China. The debt-to-GDP ratio stood at 57 percent in 2012, rose to 69 per cent in 2015 and then to almost 73 percent in 2018 (Montenegro National Debt). Another project where China is involved is the construction of the first section of the Bar–Boljare motorway, which links the Adriatic Sea and Serbia, unfinished yet project. Political relations are on the rise between China and Montenegro, also on the truism field but there is a little way on the security and technology field.
Overall in the long term China is slowly but surely entering the Western Balkan countries who are not in EU. China’s main purpose is to build an export line of land-sea goods through the port of Piraeus in Greece through the WB countries, as a route for EU trade. All this goes to fill the lack of infrastructure investments from Brussels and other western countries. Various analysts think it may also slowdown the European Integration process of the Western Balkan countries mainly Serbia because of their stable and collaborative relations over a long period of time on the security and technology field. And perhaps it is one of the reason why Serbia blackmails Europe with Russia’s alliance card.
China’s investment in the region, although small compared to the EU, could challenge EU integration convergences common goals of the Western Balkans and the EU. The European Union in this regard must be determined in addition to the requirements and conditions for the countries that must join the EU. The EU must be the main investor and donor in the Western Balkans. Once the economic ties could be too strong, the political weight would soon be felt. And above all it would vanish Europe as a political and economic project.
