Especially attractive is the Balkan’s energy sector, where major Western utilities are unwilling to make risky investments. This market is giving China the opportunity to roll out its green expertise and compete on a global scale, aiming to become a leader in the clean energy market niche, based on the Green Credit Directive, which just celebrated its second anniversary.
In fact, China has already initiated many investments in the energy sector in Serbia, where an agreement worth 2 billion euro was signed with EPS, Serbia’s power utility. Agreements have also been made in Bosnia and Herzegovina, through the
Stanari project, worth 350 million euro, among others in the region.
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It is clear that the Balkan economies are in bad shape and urgently need investment. China seems to recognize this, but setting up shop on the edge of EU is the first step towards striking deals inside it. Beijing is building assets and buying future stocks in a region closely linked with Western Europe.
Capital rich and ready to spend, China might be outplaying many Western rivals in the Balkans. Chinese investment will no doubt present opportunities to buy influence – a fact that will need to be carefully assessed by EU concerns.