Authors

Discussion

With the development of China’s Belt and Road Initiative (BRI), Chinese construction enterprises have gained a foothold in new markets, including in Central and Eastern Europe. This paper zooms in on the ongoing development of the Belgrade Metro to explore the development of the so-called ‘third country’ cooperation framework of the BRI, wherein third country finance is used to finance projects constructed by Chinese State-Owned Enterprises (SOEs), in the context of Central and Eastern Europe. This multi-billion-dollar project brings together French and German finance, French rolling stock supplier, and German construction supervision, while all construction has been assigned to SOE Power China. Research reveals how Chinese contractors and other international actors cooperate largely incidentally and are entangled in complex local political economic dynamics that ensure adverse outcomes even before construction begins. At the same time, the paper demonstrates that Serbia, which has deep political relations with China, navigates competing economic and normative powers for international finance and political benefits while positioning itself as a gateway for Chinese and EU interests.