Chinese Companies Invest EUR 940 Million in Serbia's Automotive Industrial Chain

[Global Expansion] China and Serbia have signed an investment agreement worth EUR 940 million for the automotive industrial chain, strengthening Chinese automakers' entry corridor into Europe.

Strategic Foundation: Serbia as a Springboard for Chinese Automakers into Europe

Serbia, leveraging its strategic location as the "crossroads of Europe," the China-Serbia Free Trade Agreement (effective July 1, 2024) eliminating tariffs on 90% of tariff lines, and its established automotive industry base, has become a critical foothold for Chinese new energy vehicle and auto parts companies entering the European market.

Key Figures: Four Companies Sign EUR 940 Million Deal

Minth Group, Shanghai Huizhong, Boma Technology, and Xingyu Shares have signed agreements with Serbian counterparts, focusing on high-tech and automotive components, with a total investment of EUR 940 million. President Aleksandar Vučić personally visited Xiaomi Auto’s factory and witnessed the signing ceremony, highlighting the deepening industrial synergy and mutual upgrading between the two nations.

Industry Impact: Accelerating Localization of Chinese Supply Chains in Europe

This move will help Chinese automakers circumvent EU trade barriers by enabling localized production in Serbia and expanding across Europe, thereby reshaping the strategic logic of Chinese investments in the European automotive sector.