China’s Investment in the Balkans under the Belt and Road Initiative: A Chinese Perspective

China's investment in the Balkan region has been maintaining good momentum in recent years, with preferential investments being in the infrastructure and energy sectors. In order to achieve high profits and build-up their business experiences, Chinese enterprises are taking high risks, and at the same time, most enterprises are trying to find more investment spaces, making full use of their advantages. However, in spite of the increase in Chinese investment, the real influence China has imposed on this region should not be over exaggerated.

Introduction1

In 2013 and 2014, China successively launched the One Road and One Belt initiative, which gradually became the Belt and Road initiative (B&R). It became an important platform to guide China's opening up, promote global governance, and build a community with a shared future for humankind. As an important platform for promoting B&R in Europe, 16+1 Cooperation plays an important role in promoting Chinese enterprises to go global and promote China-EU connectivity. Since the launch of the 16+1 Cooperation in 2012, China's infrastructure, energy, industry capacity, and other projects have been initiated in the Balkans. Typical examples are: China's Hegang Group's acquisition of the Serbian Smederevo steel mill; China Road and Bridge Corporation (CRBC) building the Hungarian-Serbia Railway; COSCO Group's acquisition of the Greek port of Piraeus; China Communications Construction Group building the highway in Montenegro; China Road and Bridge Company's successful bid for the Croatian Peljesac Bridge project that is financed by the EU; Shanghai Dongfang Electric building the Bosnia and Herzegovina thermal power station project in Stanari; and the North Macedonian highway project undertaken by Power Construction Corporation of China.

Source: Insight Turkey