Belgrade bets on Beijing, while Budapest turns to Brussels


Serbian President Aleksandar Vučić’s state visit to China on May 25, 2026, sent a major geopolitical and geoeconomic signal at a time when the international system is becoming increasingly fragmented between competing power blocs.

The visit, marked by meetings with Xi Jinping and the signing of more than 20 bilateral agreements covering infrastructure, artificial intelligence, green technology, trade, education and digital connectivity, demonstrated Belgrade’s deepening strategic relationship with Beijing even as it formally pursues membership of the European Union.

For China, Serbia remains one of its most valuable strategic partners in Europe outside the EU core. Beijing sees Belgrade as a gateway to the Balkans, a region where Chinese influence can expand through infrastructure investments, industrial acquisitions, transport corridors and political partnerships that bypass Brussels’ more restrictive regulatory environment.

Since the formal establishment of Sino-Serbian ties into a “community with a shared future”, relations have deepened through Belt and Road projects, investments in mining, surveillance technologies and transport links.

Vucic’s visit in 2026 therefore consolidates a long-term strategic architecture rather than inaugurating a new relationship. However, the timing is particularly important because it coincides with rising tensions between China and the European Union over industrial policy, strategic dependencies, electric vehicle exports and technology security.

The agreements signed during the visit suggest that Serbia is positioning itself as a preferred Chinese industrial and logistics center in Southeast Europe. This has important geoeconomic implications.

Chinese companies already hold strong positions in Serbian mining, steel production and transport infrastructure. Additional cooperation in artificial intelligence, digital economy projects and green energy will expand relations from traditional heavy industry to strategic technological sectors.

In practical terms, Serbia could emerge as an increasingly important production platform for Chinese firms seeking access to European markets while avoiding some of the political scrutiny associated with direct investment within the EU.

This resembles the role played by Hungary under Viktor Orbán, although Serbia lacks EU membership and therefore cannot offer identical market access advantages.

The geopolitical dimension is also important. Vučić’s visit underscores Serbia’s increasingly vector-based foreign policy. Belgrade continues to balance between the EU, Russia, China and, to a lesser extent, the United States. However, the symbolism of the visit to Beijing suggests that Serbia perceives a growing strategic space to resist Western pressure on issues ranging from Kosovo to sanctions against Russia.

China’s continued support for Serbia’s territorial position in relation to Kosovo remains very valuable to Belgrade at the United Nations and other diplomatic forums. Meanwhile, Serbia supports Beijing on Taiwan and other Chinese “core interests”, reinforcing the mutual political logic that underpins the partnership.

The visit also had important domestic implications for Vucic. The Serbian president arrived in China amid growing protests and political pressure in the country over allegations of corruption, infrastructure failures and the erosion of democracy.

Chinese support provides Vucic with economic resources and diplomatic legitimacy. Beijing does not condition investments on governance reforms, judicial independence or media freedom, unlike the EU accession process.

As such, deeper Sino-Serbian cooperation strengthens the resilience of Vucic’s political model by offering alternatives to Western conditioning. Critics inside Serbia increasingly argue that China-backed infrastructure and industrial projects operate without sufficient transparency and environmental oversight, particularly in mining and transport construction.

For the Serbian government, Chinese financing remains attractive because it is quick, visible and politically unconditional.

The wider regional significance of the visit becomes clearer when considered alongside the political transformation in Hungary following the rise of Peter Magyar and the fall of Viktor Orban. Under Orbán, Hungary functioned as China’s closest strategic partner within the EU.

Budapest has welcomed extensive Chinese investment in batteries, electric vehicles, rail infrastructure and telecommunications, while often thwarting the EU’s stronger positions vis-à-vis Beijing. Orbán’s Hungary effectively acted as China’s political bridge to European institutions.

The Magyar Ascent fundamentally changes this equation. Early indications from the new Hungarian government suggest a partial reorientation towards Brussels, democratic institutional reforms and closer cooperation with key European partners.

Although Magyar is unlikely to dismantle all economic relations with China, his government appears less ideologically committed to the “Opening to the East” doctrine espoused by Orbán.

This brings uncertainty to Beijing’s strategy for Central Europe. Chinese policymakers may now see Serbia as an even more critical anchor in the Balkans, precisely because Hungary may become a less reliable political ally within the EU.

This difference creates an interesting strategic divergence between Belgrade and Budapest. During the Orbán era, Serbia and Hungary served as mutually reinforcing nodes within a broader illiberal geopolitical alignment linking China, Russia, and nationalist-populist governments in Central Europe.

Analysts increasingly saw Orban and Vučić as political allies who share similar approaches to media control, sovereignty and transactional diplomacy. With Magyar now signaling deeper alignment with EU priorities and stronger criticism of Moscow-linked authoritarian networks, Vucic risks becoming more isolated regionally, even as he deepens ties with Beijing.

Paradoxically, Magyar’s emergence could increase Serbia’s strategic importance to China in the short term, while simultaneously increasing Serbia’s vulnerability in the long term. If Hungary gradually aligns more closely with the EU’s industrial and security policies, Serbia could become Beijing’s main political and economic base in the Western Balkans.

Therefore, Chinese investment flows can shift even more strongly towards Serbia. However, it would also intensify scrutiny from Brussels and Washington, particularly regarding telecommunications infrastructure, digital surveillance systems, critical minerals and dual-use technologies.

The EU is now on the horns of a dilemma. On the one hand, Brussels wants to maintain momentum for the expansion of the Western Balkans and prevent further Chinese or Russian penetration in the region. On the other hand, Serbia’s increasingly visible strategic alignment with China complicates the membership policy.

European policymakers may fear that accepting Serbia without deeper democratic reforms could effectively import another China-friendly veto player into the European system, replacing Orban’s Hungary with a future Serbia led by Vucic.

In this sense, Vucic’s visit was not simply a bilateral diplomatic event; it was indicative of the wider contest over the political and economic future of South-Eastern Europe.



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