More than 20 Chinese companies will collectively invest an additional €940 million ($1.1 billion) in Serbia, Serbian President Aleksandar Vucic announced on Wednesday. The capital will begin flowing into the country in July, with projects spanning humanoid robot manufacturing, automotive component production, AI infrastructure, and energy. Among the named investors is Changzhou Xingyu Automotive Lighting System, a supplier to Volkswagen, Mercedes-Benz, and Chinese automaker Aito. The announcement marks a significant expansion of China’s existing industrial footprint in Serbia, which has emerged as a favored hub for Chinese manufacturers seeking a base inside Europe’s trade orbit.
The deal deepens a bilateral relationship that has grown substantially over the past decade, with Serbia hosting Chinese-owned steelmakers, copper smelters, and EV-related supply chain facilities. For China, Serbia offers EU market adjacency, relatively low labor costs, and a government openly receptive to Chinese capital at a time when Beijing faces tightening investment scrutiny across Western Europe. The investment package also reflects the push by Chinese robotics and auto-parts companies to establish overseas production ahead of potential tariff barriers, following the EU’s imposition of additional duties on Chinese-made electric vehicles last year.