Thewesternbalkans
China has confirmed that President Xi Jinping will visit Europe, travelling to France, Serbia and Hungary between May 5 and 10.
The visit comes at a crucial time amid escalating tensions between Beijing and Brussels about trade practices, including limited access to the Chinese market and a huge trade imbalance. The trip to France, where Xi will meet President Emmanuel Macron, will be Xi’s first in five years.
The big story on the first page of People’s Daily’s edition on Tuesday, April 30, 2024, (official newspaper of the Chinese Communist Party) is that Xi Jinping will be visiting France, Serbia and Hungary from May 5 to 10. In the statement by Foreign Ministry spokesperson Lin Jian about Serbia is said: “To further deepen China-Serbia relations is in the fundamental and long-term interest of both countries and peoples, and conducive to upholding international justice and fairness and keeping the region and the world peaceful and stable…During the visit, President Xi will hold talks with President Vučić for in-depth exchange of views on bilateral relations and international and regional issues of mutual interest. They will discuss an upgrade of the China-Serbia relationship and chart the future course for bilateral relations. President Xi Jinping’s visit to Serbia will be his second visit to the country in eight years, which will mark an important milestone for strengthening and elevating China-Serbia ties. China looks forward to working with Serbia and taking this visit as an opportunity to further cement our iron-clad friendship, deepen political mutual trust and expand practical cooperation to open a new historic chapter for bilateral relations and make greater contribution to building a community with a shared future for mankind.”
Also on the page 1 of People’s Daily is a long article talking about the upcoming visit. The article calls the visit a “major diplomatic move by China towards Europe”. It adds that “an interconnected and chaotic world needs China and Europe to work together as partners to jointly safeguard and practice true multilateralism and respond to global challenges.” The first section of the article basically recaps, with a massively positive spin, Xi’s previous engagements with the leaders he is to meet during this visit. A useful point is this: China-Serbia relations provide “a model of friendly relations between China and European countries.”
One of the next sections deals with China-Serbia ties. It repeats the framework of the two having an iron-clad friendship. It reminds that Serbia was one of the first European countries to sign a BRI agreement. “The bilateral trade volume between China and Serbia has increased eightfold in the past 10 years. China has maintained its status as Serbia’s second largest trading partner for many years and became Serbia’s largest source of foreign investment in 2022…In October last year, China and Serbia signed the first free trade agreement between China and a Central and Eastern European country. In December last year, the two countries signed a memorandum of cooperation to establish a RMB clearing arrangement in Serbia.”
The article ends by saying that “facing the turbulent international situation, more “bridges” need to be built between China and Europe.”
Hungary and Serbia are important stops in the Xi´s expected trips to Central and Eastern European states. It will be significant for the dynamics of the China-Europe relationship.
Serbia is not a member of the European Union and Hungary under Orban has been the most China-friendly country in the EU. The leaders of both countries are among the most ardent European advocates of China’s Belt and Road Initiative. Hungary’s Prime Minister Viktor Orban and Serbian President Aleksandar Vucic were the only two European heads of state at China’s third Belt and Road summit last year, which was also attended by Russian President Vladimir Putin. Hungary and Serbia are also close to Russia.
Back in 2012, Hungarian capital Budapest hosted the founding of the China-CEEC cooperation mechanism to promote the Belt and Road Initiative and cooperation with 16 Central and Eastern European countries. One of the most high-profile projects to emerge from the China-CEEC cooperation mechanism is a high-speed railway to connect Serbia’s capital Belgrade with Budapest. The project has, however, been held up by EU regulations and faces delays and risks of escalating costs.
BYD, China’s largest EV manufacturer, announced plans to establish a plant in southern Hungary. BYD also has a plant in the north of the country where it assembles electric trucks and buses. Hungary is also the main European destination for Chinese investment in EV batteries.
Meanwhile, in Serbia, China’s investment flows in recent years have edged ahead of big European players such as Germany and France – China has risen to become the Balkan state’s largest and principal investor, reported South China Morning Post. Early this year, China’s Shanghai Fengling Renewables and Zijin Mining announced a €2 billion wind and solar power project in what is being described as Serbia’s largest renewable power investment.
Guided by China’s free trade agreement with Serbia and Serbia’s EU candidate status, Chinese companies have mainly invested in Serbia’s automotive, mining and metals manufacturing sectors – and Xi has described this relationship as “ironclad”. China’s Minth Automotive, which has an aluminium car parts plant in Serbia, has plans to build a new production centre to make battery housing parts for EVs. Other Chinese automotive companies established in the country include Linglong Tyre, Mei Ta, Xingyu Automotive Lighting Systems and Yanfeng Automotive Interiors, which together supply both the EV and traditional car markets of Europe.
All of this is in stark contrast to the EU’s message of “de-risking” from China. Beijing offers too many economic opportunities to European countries that are not to the taste of the United States. The Chinese leader’s stop in Belgrade, will come in the week of the 25th anniversary of the US bombing of China’s embassy in the Serbian capital, an event that brought Russia and China closer over shared anti-American sentiment. China follows its tactic of creating a mini block of friendly countries in Europe, more easily accepting strategic independence from the US.
