As a non-member, Serbia's cooperation with China not affected by EU politics

Editor's Note:  

This year marks the 10th anniversary of the Belt and Road Initiative (BRI) proposed by Chinese President Xi Jinping. Through the lens of foreign pundits, we take a look at 10 years of the BRI - how it achieves win-win cooperation between China and participating countries of the BRI and how it has given the people of these countries a sense of fulfillment.

Serbia, a country from Eastern and Central Europe, is one of the most positive examples of cooperation under the BRI framework. In an interview with Global Times (GT) reporter Wang Wenwen, Katarina Zakic (Zakic), head of the Regional Center "Belt and Road" in Belgrade, the Institute of International Politics and Economics, shared her views why Serbia is distinct. 

This is the 16th piece of the series.

GT: What do you think of the advancement and development of the BRI over the past 10 years?

Zakic: Since the beginning, it was very clear that this is something extraordinary that doesn't happen every day. We knew that it would be a huge project and huge undertaking by China, to develop it and to fund it.

We have approached the 10th anniversary. When we look at the results, they are really impressive. Regarding the investments, we are reaching the amount of $1 trillion. Who can say which other countries invested so much in one project throughout 10 years? Even many of those projects do not last 10 years. Around 40 million people worldwide do not have the burden of extreme poverty in which they were living before these projects. 

In general, China has achieved excellent results. We are impressed by the results in transportation infrastructure and especially the types of the countries in which they were conducted. Those were the countries that needed those infrastructure projects. One of the reasons that I highly appreciate throughout this project and the idea that China had behind it was that each country should nominate the project it wants to conduct. And we would very much appreciate China's assistance in those regards. We should also highly appreciate that China did not only invest in energy and transportation. It also invested a lot in health sector, in tourism, in culture, in buildings and real estate. 

GT: What makes Serbia the pillar of China-Central and Eastern Europe cooperation?

Zakic: Serbia is in Europe, but it's not an EU member. This is our strategic situation, because for many years, we are still trying to become an EU member. Our cooperation with China and the successful results are partially due to this fact that we are not an EU member, because otherwise the politics within the European Union will affect our relations with China. 

We have comprehensive cooperation with China. We have relations on very high political levels. We have signed with China the comprehensive strategic agreement. Then we have excellent cooperation on economic level, especially regarding the loans and the investments that we have, not only throughout the BRI, but also throughout the China-Central and Eastern Europe (CEEC) cooperation framework. 

Not only political and economic relations are on the high level, but also people-to-people and cultural relations are on a very high level. All these elements help Serbia become the pillar of China's projects and China's relations in the Western market. Serbia didn't have any kind of suspicions or negative reactions toward deepening our cooperation. Each government, starting from 2008, just built up that operation on even higher and higher level. We are in a way complementing each other. We respect each other's policies. Even in some cases when we have some kind of problem, for example, on economic level or regarding the investments, there was always an understanding that we should speak about that and resolve it. In this way we distinct, especially within Balkan countries.

GT: Does Serbia face any pressure from the West in its cooperation with China? What domestic factors in Serbia will promote its deep integration into the BRI?

Zakic: For 22 years, Serbia is trying to become an EU member. When you are trying to become an EU member, all your policies and strategic decisions, not only in economic sense, but also in political sense, have to be in reliance to the EU policies. Countries within the EU have very different kind of cooperation with China. Hungary and Greece have more friendly cooperation with China than Germany, even though Germany is the main partner of China within the EU.

There are concerns coming from the EU about Serbia's cooperation with China. But there are also concerns about some other parts of our journey to the EU. China is just one of the things that the EU wants in a way to change within Serbia.  

In recent years, people in our government really did have the opportunity to learn a lot about China and now they have a deeper understanding about China. Many of us nowadays do understand China in a completely different sense. It was not something that was in a way normal for them. In previous time, for example, when I went to the primary school and high school, usually the students within those levels of education learn about history coming from Europe. They do not learn so much about the Middle East or Asia. Thanks to the China-CEEC and the BRI, we have more opportunities to learn. 

Nowadays, there is a better sense of understanding between all levels of the people within Serbia to understand Chinese people and Chinese culture. For example, Chinese restaurants are very popular in Serbia and people very much like Chinese food and they use chopsticks. So this is something normal to you. But for us, it means that many things in Serbia are big change. And for example, there are more and more books about China in Serbia.

GT: A large number of Chinese companies view Serbia as a "bridgehead" to enter the European market. What do you think of this trend?

Zakic: I think that's a very wise decision. There are many advantages for the Chinese companies to be here. We are in Europe. Our geographical position is very good. But since we are not the EU member and our economy is still developing, there are many advantages for the Chinese companies to have industrial house here or service house here in Serbia. Then because we are very close to the most developed countries within the EU, it is a great opportunity for the Chinese companies to open their production companies or services here in Belgrade.

Also, Serbia is in a way bridge between the East and the West. There are many opportunities that the Serbia government is giving the foreign investors here who want to operate in our country. It's not only just for the Chinese companies. It's a general policy regarding direct investments in Serbia, but I think that many Chinese companies realized all of the benefits to come to Serbia. 

We have five Chinese companies that work in the automotive car industry. They use Serbia as a hub for production. They export all of those things to the EU market. For them, it's ideal. They are very nearby to Europe. So the transportation costs are not so high. All of these things helped those Chinese companies make a decision to come into Serbia. They have the friendly environment, good labor force, very secure political and economic environment. And they can export to the EU market. 

GT: During the G20 summit in September, the US and some other countries outlined plans for a rail and shipping corridor that would connect India with the Middle East and ultimately Europe, another counterweight of the BRI. What do you think of this plan?

Zakic: I see it in a way to counterbalance China's economic and political rise. This project is just one of the cases in which we can see that currently we have some kind of situation that we had during the Cold War, in which the former Soviet Union had very dynamic battle with the US regarding who will have more power and recognition and who will have a better economic success. Now we have that kind of thing going on between China, the US, the EU and of course India as the developing country and economy that wants to be part of this play. 

I do see this project as the competition toward the BRI. But we need to wait and see. This is just a preliminary thing. At this moment, we do not know the financial construction of the whole project. We do not know how much money it will take, who will fund it, and how it will develop. 

GT: Some European countries, following the US, have been calling to de-risk from China. What do you think of this move?

Zakic: The US had a specific situation for many years being one global superpower. And it lasted for long. They had a very clear situation that there was not a power that would become in some periods of time economically and militarily strong to question the US position in this world.

When China started to rise, they were very aware that the Chinese economic development is very strong and very fast. But they were not in a way aware that China would become such a global political and military power as well. When you are no longer No.1, or somebody is questioning your position as a No.1 power in the world, of course that power would always try to use all tools and means to question the other part.

I see this part of political narrative of de-risking as a part of the US trying to still be the No.1 power in the world. At this moment, de-risking is just a part of the narrative to in a way encourage other countries not to cooperate with China so much and to questions China's position in everyday world. Some countries in Europe do try to use it as a term to become not so dependent on China and change this situation to be more self-sufficient. I see it as really a political narrative to destabilize China's position, not only in international politics, but also international economics.