Chinese companies have been working on some of the most important infrastructure projects in Serbia for years. Chinese capital is present in almost all key industries, from mining and metallurgy to the automotive industry and information technology.
Financial reports from last year show that these are big players in the country. The twenty largest Chinese companies in Serbia collected as much as 865 billion dinars, according to data obtained by Forbes.
Chinese investments were proof of successful economic cooperation from which Serbia has multiple benefits. However, interest grew with income Washington i Brussels for the way those companies operate.
US sanctions
On Thursday (June 18.6), one person lost his life at the Linglong factory in Zrenjanin.
The management of this factory has previously faced accusations of forced labor, work that is done involuntarily and under the threat of punishment. Because of this, the US Customs and Border Protection (CBP) is issuing an order in late 2025 to detain shipments of automobile tires produced in Linglong.
Photo: Tanjug/Sava RadovanovićLinglong in Zrenjanin is suffering the consequences due to the suspicion that he is carrying out forced labor
This order is the result of CBP's investigation and analysis of information indicating that Linglong manufactures automobile tires using forced labor. CBP analyzed worker statements, photographs, employment contracts, field focus group notes, screenshots of text messages, open source NGO reports, media reports and academic research.
Workers at Linglong were subject to nine indicators of forced labor according to International Labor Organization criteria: withholding of identification documents, intimidation and threats, isolation, overtime, withholding of wages, debt slavery, violent living and working conditions, deception and abuse of vulnerability, it said.
American stop for Zijin too
This week, another Chinese company operating in Serbia received American sanctions.
CBP issued an order to detain copper and copper products from Ziđin Koper on Tuesday (June 16.6). The decision took effect immediately, and Customs Protection officials will in the future detain shipments of these products at all US points of entry due to suspicion that the goods were produced, as in the case of Linglong, by forced labor.
The President of Serbia, Aleksandar Vučić, assessed that Serbia is in the midst of global geopolitical turmoil, the consequences of which are felt by both the domestic economy and exporters, Blic reported.
"Zidjin is the number one and number three exporter in our country at the moment. Linglong is the number five exporter in our country. They contribute tremendously to the progress of our economy. This is certainly bad news for us," said Vučić.
Photo: Jadranka Ilić/TanjugCBP has issued a detention order for copper and copper products from Ziđin Koper
Dissatisfied EU
At the recently held Summit of the leaders of the European Union and the Western Balkans held in Tivat, the EU's message to Serbia was clear - it must make a strategic decision about its future.
German Chancellor Friedrich Mertz said that it is not possible to maintain a long-term balancing policy between the European Union, Russia and China.
"Serbia's path to the European Union remains open, but Serbia must decide which side it wants to be on," Mertz said at the time.
The fact that the Belgrade-Budapest railway has not yet been put into operation shows that the EU is distrustful of China and Chinese companies operating in Europe.
Namely, Chinese companies were engaged in construction work in both Hungary and Serbia. In Hungary, these are China Tiejiuju Engineering & Construction and China Railway Electrification Engineering Group. And with us, China Railway International Corporation (CRIC) and China Communications Construction Company (CCCC).
Photo: Michael Kappeler/dpa via APThe EU was clear - Serbia must make a strategic decision about its future
The beginning of railway traffic between Belgrade and Budapest was announced for 2017. However, at that time the works were just starting in Serbia, while in Hungary the project was stopped for about two years because the European Commission launched an investigation in 2018 due to possible irregularities in public procurement.
Freight traffic was established this year, but passenger traffic is not yet due to additional security checks of the European train control system in Hungary. During construction, Chinese companies had difficulty implementing ETCS (European Train Control System) and signaling systems that meet strict EU regulations.
EU policy towards Chinese steel is also problematic for Serbia. European producers have been warning for years that Chinese companies can more easily market steel to the European market through Serbia. Because of this, Serbia was often subject to special supervision by European trade institutions.
The Chinese Hestel Group, which operates the Smederevo ironworks, is feeling the pressure. This year, quotas for duty-free steel exports to the EU have been reduced.
Friendship of steel (probably not Smederevo)
Despite all the interventions of the USA and the EU, Serbia somehow remains loyal to its Chinese partners.
Vučić's visit to Beijing also shows that Serbia has no intention of changing that.
Photo: Tanjug / Jadranka Ilić Chinese President Xi Jinping and Serbian President Aleksandar Vučić
During the five-day visit, new Chinese investments and infrastructure projects were announced. And Chinese President Xi Jinping presented Vučić with the Order of Friendship, China's highest state decoration for foreign citizens.
Vučić thanked Xi "for everything achieved so far" and repeated several times that Serbia and China have a "steely friendship".
On this occasion, talks were also held with 29 Chinese companies, which resulted in contracts worth around one billion euros and a plan to create 1.650 new jobs.
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