Europe

Over the past decade, Serbia has become a significant point on the global map of China’s infrastructure expansion, known as the Belt and Road Initiative – China’s modern response to the historic Silk Road.

At first glance, the numerous highways, bridges and railways rapidly being built across Serbia seem like signs of modernisation and development. However, behind these large construction projects lies a complex relationship in which China’s strategic interests are being realised – with financial backing from Serbia itself.

In most cases, the cooperation model is the same: Chinese state banks offer favourable, but still loan-based arrangements to the Serbian government. This results in public debt, with the cost of financing projects falling on the national budget – that is, the Serbian taxpayers. These loans almost always contain clauses requiring the work to be carried out exclusively by Chinese companies, with no public tenders, no competition, and often no meaningful oversight.

In practice, this means the money flows from Serbia to Chinese contractors, while the debt remains with the state. The work is frequently carried out with minimal participation from local workers and companies.

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For China, these projects are not just construction works. They are part of a broader geopolitical strategy to build an infrastructure network connecting China with European markets. Serbia, at the heart of the Balkans, is an ideal transit hub for goods, services, and political influence.

Highways connecting Belgrade to Montenegro, North Macedonia, Hungary, or Bosnia and Herzegovina are not built solely for local traffic, but as part of a transit corridor serving Chinese trade. Through this infrastructure, China expands its economic and political influence, using the resources of its partner countries while leaving them with mounting debt. In other words, China is building its Belt and Road with other countries’ money. In Serbia’s case, that means funds from the state budget – collected through taxes from citizens and businesses.

The problematic aspect of these arrangements is not just geopolitical interest, but also a lack of transparency. The public often does not know the exact terms of the contracts. There are no tenders, no independent cost control, and often no accountability for the quality of work. In some cases, projects are overpriced or have a weak local economic impact because domestic firms and workers are left out.

This puts Serbia at risk of handing over the construction of its strategic infrastructure to foreign control, without broader national interest or benefit to its own economy.

All in all, China’s projects in Serbia are about more than just building roads and bridges. They are part of a wider global strategy in which China extends its economic influence through infrastructure. In doing so, it uses loans that countries like Serbia must repay – or more accurately, their citizens. It is therefore entirely accurate to say that China is building its new Silk Road with Serbian taxpayers’ money.

Who really benefits

It’s undeniable that local residents – the people of Serbia – do see some tangible benefits from these infrastructure projects. [...] However, in a broader geopolitical and economic context, the benefits gained by China are far greater and longer-lasting. These projects accelerate the transit of Chinese goods to European markets, secure a stable transport route for raw materials like copper, gold and iron from Serbia, and strengthen China’s political and infrastructural presence in the region.

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The conclusion is clear: China is building its new Silk Road across Serbian territory and with Serbian money. While part of this infrastructure benefits the local population, the advantages for China are far greater.