SERBIA'S APPROACH TO CHINA'S SILK ROAD: OPPORTUNITIES AND RISKS

Abstract

When China introduced the strategy for the new Silk Road in 2013, it had once again affirmed its position as a global leader and defined future direction in its foreign policy and economic development. As one of the most ambitious projects ever, once fully implemented, the new Silk Road will connect markets in Asia, Middle East, Africa and Europe, strengthen cooperation between countries and boost international trade flows.This paper analyzes the importance of the new Silk Road for economies along its corridors, аs well as the impact on Serbia’s economic development. It examines China’s investment model in Serbia, sectors with the largest volume of investment and the potential risks that developing countries could face through the implementation of BRI projects. The review also evaluates the attractiveness of the Serbian market and its role in the BRI vision in the Western Balkans. Preliminary research indicates that investments from China in recent years have had a positive impact on Serbia’s economic development. It is anticipated that further enhancement of investment relations between Serbia and China may have a wider impact not only on the realization of BRI goals in Serbia, but also in Europe, considering Serbia’s geographical position and the potential to bring Chinese companies closer to the EU market.