Xiconomics: How cooperation with China is transforming industries in Serbia

Chinese President Xi Jinping and Serbian President Aleksandar Vucic jointly attend a signing ceremony of cooperation documents after their talks in Beijing, capital of China, May 25, 2026. (Xinhua/Xie Huanchi)

Serbia cooperation deepens through industrial revival, infrastructure connectivity and emerging-sector partnerships as ties enter a new phase.

by Xinhua writers Shi Zhongyu, Zhang Xuan and Nemanja Cabric

BELGRADE, May 27 (Xinhua) — For commuters between the Serbian capital of Belgrade and Novi Sad, the country’s second-largest city, travel time has been cut from one and a half hours to just 30 minutes, thanks to a sleek high-speed railway built by a Chinese company.

For workers at the Smederevo Steel Plant, Serbia’s leading steel producer, Chinese investment has revitalized the historic mill and transformed thousands of people’s lives.

Chinese President Xi Jinping describes the China-Serbia friendship as “ironclad.” With Serbian President Aleksandar Vucic’s ongoing state visit to China, the two countries are expected to bolster their comprehensive strategic partnership.

REVITALIZING TRADITIONAL INDUSTRIES

Established in 1913, the Smederevo Steel Plant was once regarded as “the pride of Serbia.” However, by the late 1990s, declining competitiveness and weak management had pushed the plant to the brink of closure.

In 2016, China’s HBIS Group acquired the Smederevo steel plant. Also in that year, Xi visited the plant. Nenad Cvetanovic, a veteran employee at the Smederevo steel plant, still recalls the sense of encouragement among workers when the Chinese leader told them that the plant would “surely be revitalized.”

Through joint efforts from both sides, the plant has undergone a breathtaking transformation, regaining its position as one of Serbia’s key export engines.

Cvetanovic noted that before the acquisition, workers faced considerable uncertainty and insecurity, but “the arrival of new investment brought stability and renewed confidence in the factory’s future.”

A similar story of industrial revival unfolded in the mining city of Bor. Once burdened by heavy debt, its mining complex was resurrected through major investment by China’s Zijin Mining Group, helping transform Bor into one of Serbia’s most prosperous cities with the highest-paying salaries.

Over the past decade, Chinese investment in Serbia has reached billions of U.S. dollars, making China one of its largest and most consistent sources of foreign direct investment.

At the same time, China’s expanding market access has created new opportunities for Serbian exports. With the China-Serbia Free Trade Agreement nearly two years old, more Serbian specialty products, such as wine, honey, beef and lamb, have entered the Chinese market.

Statistics show that Serbia’s exports to China increased from 22 million dollars in 2013 to 1.9 billion dollars in 2024.

Serbian President Aleksandar Vucic visits the Xiaomi auto factory in Beijing, capital of China, on May 26, 2026. (Xinhua/Xie Han)
BUILDING CONNECTIVITY

In October 2025, the Serbian section of the Budapest-Belgrade railway, a flagship Belt and Road Initiative project, fully opened to traffic, significantly improving regional connectivity.

Improved connectivity has led to more travel, said Aleksandar Mitic, a senior research fellow at the Institute of International Politics and Economics, a Serbian think tank. “I now see my children taking the train to visit their grandparents in Novi Sad in just 30 minutes,” he said.

Across Serbia, highways and expressways built by Chinese companies have significantly shortened travel times, forming an integrated transport network that reduces isolation, eases congestion, and brings cities and communities closer together.

“My cousins from southwestern Serbia are traveling to Belgrade today to watch an important football match. Thanks to a highway built by Chinese companies, their journey has been reduced from five hours to just two and a half,” said Mitic.

The benefits also extended to tourism, boosted by visa-free policies and direct flights. Marija Labovic, director of the National Tourism Organization of Serbia, said Chinese tourists recorded over 85,000 overnight stays in Serbia during the first quarter of 2026.

She added that destinations are increasingly tailoring food, tours and cultural experiences to Chinese visitors, helping drive sustainable local economic development beyond Belgrade.

Serbian President Aleksandar Vucic visits the Minth Group’s “future factory” in Jiaxing City, east China’s Zhejiang Province, on May 27, 2026. (Xinhua/Liu Mingxiang)
EXPLORING NEW FRONTIERS

During Xi’s Monday talks with Vucic, he said against the backdrop of a new scientific and technological revolution and industrial transformation, the two sides should expand cooperation in emerging sectors such as artificial intelligence, the digital economy, green energy and advanced manufacturing to foster new growth drivers.

Following the talks, the two heads of state jointly witnessed the signing of over 20 cooperation documents in areas including politics, economy and trade, science and technology, education, legal affairs and culture.

According to a joint statement released on Monday, the two sides will work to align China’s 15th Five-Year Plan (2026-2030) and the Serbia 2030 development strategy. Building on the existing successful cooperation, they will actively explore new areas of future growth and jointly pursue their respective national development goals.

During his visit in Beijing, Vucic also toured the factory of Xiaomi, a Chinese electronics maker.

“It’s really great,” said the Serbian president after trying out a Xiaomi electric vehicle.

Concrete cooperation projects in various emerging fields are already underway, including the establishment of a robot factory in Sabac, west of Belgrade. The factory is expected to create hundreds of jobs, and a wind power project in the northern city of Pancevo, which will help optimize Serbia’s energy mix.

Former Yugoslav foreign minister Zivadin Jovanovic said the comprehensive strategic partnership between China and Serbia is aimed at improving the quality of life for their peoples.

The Chinese investment has helped drive strong economic growth while providing an alternative to the political and financial conditions often attached by Western institutions, he added.