China will invest selectively in South-eastern Europe

Significance

Despite controversies and Western push-back, Beijing remains involved in infrastructure development across South-eastern Europe. Chinese investment is also flowing into the industrial sector.

Impacts

• The EU will take further steps to counter Chinese influence in the Western Balkans.
• Despite rising China-scepticism, most Balkan states will not blacklist Chinese tech companies on national security grounds.
• China’s policy banks are scaling down infrastructure lending.