Xi's visit to Hungary and Serbia brings new Chinese investment and deeper ties to Europe's doorstep

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Most countries in the European Union are making efforts to “de-risk” their economies from perceived threats posed by China

FILE - Chinese President Xi Jinping, left, reviews an honor guard with his Serbian counterpart Aleksandar Vucic during a welcome ceremony at the Serbia Palace in Belgrade, Serbia, Wednesday, May 8, 2024. . But Hungary and Serbia have gone in the other direction. They are courting major Chinese investments in the belief that the world’s second-largest economy is essential for Europe’s future.

Zsuzsanna Vegh, a program assistant at the German Marshall Fund and visiting fellow at the European Council on Foreign Relations, said those deals were “a clear signal that China sees Hungary as a key and reliable ally" in the EU as it seeks to reverse Europe's toughening de-risking policy. During Xi's visit to Serbia last week, he and Vučić signed an agreement to build a “shared future," making the Balkan country the first in Europe to agree on such a document with Beijing.

While Serbia formally wants to join the 27-nation EU, it has been steadily drifting away from that path, and some of its agreements with China aren't in line with rules for membership. In February, Hungary followed Serbia's lead by concluding a security agreement with Beijing whereby Chinese law enforcement officers would be permitted to assist their Hungarian counterparts in police actions within Hungary.

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Xi's visit to Hungary and Serbia brings new Chinese investment and deeper ties to Europe's doorstepMost countries in the European Union are making efforts to “de-risk” their economies from perceived threats posed by China.
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