Navigating the Crossroads: The EU’s Challenge to China’s Belt and Road Initiative

The European Union  (EU)  norms could be viewed as a potential challenge to the Belt and Road Initiative implementation in Serbia, the main issues of the BRI in relation to the European Union could be balancing Chinese influence and the EU accession process, the implementation of  European policies in Serbia (for example green policies), and differences in foreign policies between China and European countries.

On the one hand, Serbia is navigating the EU accession process, while on the other, it faces the complexities of the BRI, which at times conflicts with European law. The majority of investments in Serbia continue to come from the European Union, but with the advent of BRI as a huge and vital participant, the dynamics of power projection are shifting. From 2016- June 2022, China invested more than 2,3 billion EUR into the projects across the whole country, such as Hesteel Smederevo, Mei Ta Obrenovac,  Shandong Linlong tyre company in Zrenjanin, Zijin Mining in Bor and a lot of other car industry companies in Kragujevac, Niš and Sabac.

China was accused by the group of  European Union MEPs and IPACs (Inter-Parliamentary  Alliance on China) members of leading Western Balkan countries of lowering their environmental standards.  However, there is evidence, for example, in the Kostolac-Thermal power plant project, that EU environmental standards were implemented during the construction. Construction has obtained an Environmental Impact Assessment Study. In the same case study, there were risks that Chinese companies would not follow European norms and standards, therefore, Serbia hired supervisors and tried to avoid this risk.  

Regarding risks, Chinese investments have been dogged by controversy. One case is Kostolac mentioned above, the other most recent one is the tragic collapse of the roof canopy of the  Novi Sad Railway station on November 1 this year, during which 14 people lost their lives and 30 were injured. The incident stirred up massive protests across Serbia. The railway station was reconstructed within the redevelopment of the Budapest-Belgrade high-speed railway, contracted between China, Hungary and Serbia. 

The reconstruction conducted by Chinese companies CRIC and CCCC started in 2021 and in July this year, authorities declared that European standards have been adhered to during the reconstruction process. While President Vučić refuses criticism of the Chinese investment and calls for stopping “anti-Chinese hysteria”, some facts are raising suspicions against this investment. For example, permission for reconstruction from 2021 does not state which parts of the building will be reconstructed, and no further details about these documents were provided. Vučić stated that “A lot is unknown at the moment” and sees it as a complex issue. He calls for punishment for those responsible for this tragedy and yet his communication regarding this investment is a bit vague. No sure conclusion could be said about who is responsible now and where mistakes were made, but the facts are that Chinese companies conducted reconstruction as a part of BRI in this case. 

 Also challenging and crucial for Serbia should be managing its foreign policy towards China and the European Union simultaneously, rather than standards and norms.  Another issue that the European Union is concerned about is the strategy of “debt trap diplomacy,” which is being widely used by China. “Debt trap diplomacy typically involves one country providing large loans to another for substantial investments.” This approach creates a bond with commitment, also called dependency, which leads to an imbalance of power between two countries and could be a source of tension soon or later.