Jeffrey Sachs: Serbia Has Strong Economic Relations with China, Should Continue on This Path

American economist and professor at Columbia University Jeffrey Sachs stated that Serbia, which is a respected interlocutor in the region and globally, has the potential to support all its neighbours.

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28.02.2025. 10:30

Jeffrey Sachs: Serbia Has Strong Economic Relations with China, Should Continue on This Path

Speaking via video link at the "Future of the Belgrade Stock Exchange" event, Sachs emphasized that the best option for Belgrade would be for China and the EU to continue open trade and constructive relations, while Serbia follows its European path.

Sachs noted that Belgrade will not find itself in a position where it has to choose a side and added that, from an economic perspective, the EU is the most important for Serbia, while China is important and the US is moderately important.

"I believe Serbia still has strong economic relations with China and many investments. If I were in Serbia's position, I would continue along this path. Chinese direct foreign investments are welcome in Serbia, whether it’s about electric vehicles, batteries, energy technology, hydrogen, artificial intelligence, digital connectivity, Huawei, or other companies," Sachs said.

He described this as a good way for Serbia to leap forward in new areas. He also pointed out that DeepSeek is a champion in artificial intelligence, and what the Chinese produce at lightning speed is much cheaper and of better quality than American companies. He reminded that Serbia has strong economic relations with China and stated that it would be suicidal for the EU to break off trade relations with Beijing.

"I even think that European politics, though insane, won’t go so far as to sever relations with China," Sachs said.

The professor stated that the real opportunities for development and investment are the main drivers of prosperity and change.

"The financial system is the first step toward achieving changes, and I believe that if we can establish peace, which is truly within reach, then what Serbia is doing with its financial market can really be in the spotlight because a boom will happen in infrastructure, energy system transformation, green and digital technologies, new hydrogen-based technologies, transport services, and services in general between the Middle East, Europe, Asia, and Africa. Serbia will literally be at the center of all of this," he explained.

He emphasized that Serbia could play a role as a bridge in dialogue, and if that happens, "many problems could become opportunities for massive growth."

He added that when it comes to the capital market, Serbia faces many obstacles but also many opportunities. When asked what countries that might have to make a decision should do, Sachs said that some things are obvious for Serbia.

"From an economic point of view, you won’t have to choose. Relations with China are very good, productive, and constructive. Right now, you certainly don’t want to sever relations with the US, and you don’t need to. Your geographic position is such that you don’t want conflicts with neighbors. This means Serbia will not take any radical steps against the EU. It might be forced to do so, but that’s not desirable," Sachs said.

For Belgrade, he noted, it would be best if China and Europe, or the EU, continue open trade and constructive relations, while Serbia continues on its European path because it doesn’t make sense for the American market to be the solution for Serbia, economically speaking.

"This cannot be the solution that would force you to sever relations with China," Sachs said, adding that Serbia really cannot afford to sever relations with the EU and its neighbors either.

According to him, the best stance would be to continue economic and political relations openly, to disregard American protectionism, and for neither Europe nor Serbia to be forced to choose between America and China. He emphasized that the capital market is important, as well as Serbia’s position and role in the region.

"Serbia represents a bridge between different regions—the EU, the Middle East, Russia, and Africa. Serbia is very well positioned and represents a place where several potentially dynamic regions for the global economy intersect," Sachs assessed, adding that Serbia is the main recipient of these connections.

He further stated that the best moment and great news are that US President Donald Trump and Russian President Vladimir Putin are talking, and there is renewed discussion about reopening economic relations between Russia and the US.

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