"China interested in region as transit toward EU"

Former Yugoslav countries can expect significant Chinese investments in infrastructure, as the path leading China to the EU market, says Vladimir Gligorov.

Izvor: Beta

Tuesday, 16.12.2014.

17:16

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"China interested in region as transit toward EU"

According to him, the advantage of Serbia is its location, in other words, "the transit character of all of the Balkans, including Serbia."

China has an additional interest to secure jobs for its construction industry, Gligorov said, adding that "the interests of market access and investment in infrastructure will determine what and where China invests in, at least when it comes to Europe."

Asked how much money Serbia could expect from the announced USD 10 billion investment in the region, and what could be the next significant project after the Zemun-Borca bridge in Belgrade, Gligorov said that it was "difficult to immediately talk about the amount."

"But there is interest in investing in rail traffic, there have been mentions of the Belgrade-Budapest railway... Generally, China's interest is to gain better access to the European market. The Balkan in that case plays a role and it is logical that they will build roads, railways, bridges, ports... These are some of the projects that could have priority," said Gligorov.

Asked what other countries of the former Yugoslavia can expect from the summit in Belgrade, the economist said that Chinese investors are interested in all of them for their transit role, "but infrastructure and roads leading into the interior of the Balkans are of less interest to the Chinese."

"This is the biggest problem in the Balkans - it is better connected with the rest of the world than with itself. That part of infrastructure development probably should not rely on Chinese investments, but on what the EU can offer," said Gligorov.

According to him, the first result of the meeting in Belgrade could produce identifying of potential projects that could be of interest to all participating countries.

"Basically, China mainly invests in infrastructure so it is likely that will be discussed: which are the infrastructure projects that could be interesting to Chinese investors. They have set aside an amount of money for that, they do the same in other parts of the world, and also in the Balkans and Central and Eastern Europe in general," said Gligorov.

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