1. Transport Infrastructure in South-Eastern Europe: Challenges and Opportunities for China Jelena Damnjanovic Simic Novi Sad School of business Novi Sad, Serbia

2. Structure  Introduction  China’s FDI flows  China and Central and Southeast Europe  Comparative summary of Ada and Pupin’s bridge  Serbia and China  Conclusion

3.  Outward FDI stock has reached $613 billion in 2013.  China’s FDI flows to the EU ‐ 27: 2009 - € 3.19 billion 2011- €15.03 billion in terms of stock  Companies with Chinese shareholders employed 27,381 people in Europe in 2011.  In 2013 - 123,780 jobs.

4.  The actual amount Chinese companies already invested in Central and Eastern Europe is to the tune of several billions of dollars, with further lines of credit stretching to $10 billion  The $10 billion credit line was just one of 12 proposals for further economic cooperation put forward at the China-Central and Eastern Europe leaders' summit, in Bucharest, Romania, on 25 November 2013.

5.  Chinese state-owned giants China General Nuclear Power Group, China Huadian and Sinohydro  Private wind energy provider Ming Yang Wind Power Group and Huawei Technologies  Nuclear, telecommunications and high-speed rail sectors, wind power...  High-speed rail line linking Hungary and Serbia  China has carefully targeted countries with a strong need for investment and potentially growing market  China slowly overtakes the United States as the world's largest energy consumer and becomes one of the most important drivers in global energy demand

8. Ada bridge Zemun-Borca bridge Constructor Consortium of three EU companies, Porr AG fromAustria, Slovenia ceste tehnika from Slovenia and DSDBrückenbau GmbH from Germany. DSDBrückenbau GmbH China Road and Bridge Corporation (CRBC) Investors City of Belgrade, the European Bank for Reconstruction and Development, European Investment Bank and several private financiersEuropean Bank for Reconstruction and DevelopmentEuropean Investment Bank Export-Import Bank of China Serbian government Total lenght 964 m 1507m Width 45,04 m 29,1m Cost (mil.euros) 360 190 Period of construction 2008-2011 (2013) 2011-2014

9.  In 2007 China had zero km of super high speed rail tracks  In 2014, the total length of super high speed rail tracks in China is more than in the entire world combined

10. Serbia and China Construction of two sections of the Obrenovac-Ljig motorway, Shandong group

11.  China targeted the energy sector, starting with a $300 million low- interest loan for the reconstruction of the Kostolac (Serbia) coal fired power station, with Chinese companies employed as sub- contractors.  Environmental Energy Holdings and the Shenzhen Energy Group are in negotiations on developing the Nikola Tesla coal power plant (Belgrade, Serbia), at an estimated cost of €1.5 billion.

12.  Serbia is highly competitive fit for investors  The benefits for China are commercial, financial and political  Serbia has a strong positive experience with Chinese firms and cooperation with government of China.  Construction of the Pupin Bridge is a superb reference for the Chinese infrastructure construction companies

13. Famous Sun Tzu said 2000 years ago that the supreme art of war is to subdue,,the enemy„without fighting. Chinese Prime Minister Li Keqiang understood this message very well.