New Chinese investors to come to Serbia? – Vucic announces train factory, interest in Simpo as well

The president of Serbia, Aleksandar Vucic, stated, after a talk with the Chinese president, Xi Jinping, in Moscow, that he expected China’s decision on the construction of a train factory in Serbia not long after.

– The president of China, Xi Jinping, told me that they were finishing their analyses regarding the construction of a train factory – Vucic told the press.

According to him, now, for the first time, a Chinese company which is interested in the Simpo company from Vranje has contacted them. As he added, at Simpo, the state is currently partially compensating for the salaries and maintaining the existence of that furniture factory in difficult conditions.

Vucic estimated that a potential Chinese investment in that factory, where over 1,400 people are employed, would be a salvation for Vranje.

He also said that he had asked the Chinese president for more Chinese investors to come to Serbia and reminded that three out of five biggest exporters from Serbia were Chinese companies.

Vucic said that president Xi had proposed for Serbia and China to improve their relations with a higher degree of management coordination.

That means, as he said, that the presidents of the two countries should meet once a year and “control the processes of cooperation and adopt plans for the future.”

He pointed out that it was “a huge change that such a big country proposes coordination to a small country, where the two presidents would agree on further course of action.”

– Xi said, if you need anything, just ask us, my friend – said Vucic.

According to him, the Chinese president also insisted on cooperation of “mutual benefit,” that is, to use mechanisms such as the one from the Free Trade Agreement, which, as he said, are already giving results.

– Last year, our trade exchange with Chine increased 30% compared to the previous year – Vucic said and added that plenty more could be improved in that cooperation with China.

He said that, 10 years before, the total exports of Serbia to China had amounted to around EUR 20 million, and that now they were at EUR 1.9 billion a year, around a 200-times increase.

– China is becoming essential to us. Especially when it comes to the Smederevo Steel Mill. I expressed special gratitude to Chinese president Xi due to the fact that the Steel Mill has suffered great losses in the past three years and they have not laid off people, they have kept higher salaries well above the average and Smederevo and the whole Podunavlje District have advanced, but so has the whole Serbia, thanks to them – said Vucic.

He added that Zijin had had an income, and that Linglong had started making an income.

– I am afraid that there will be consequences for Linglong due to the US sanctions and tariffs and that is why I wanted and will always want to fight for having them removed or to find a solution with the USA regarding that issue. From infrastructure to everything else – said the president of Serbia.

According to him, soon, a business delegation of Serbia will visit China, whereas he will be president Xi Jinping’s guest at the beginning of September.

Predsedništvo Republike Srbije

Simpo a.d. Vranje

president of Serbia

Simpo Vranje

Aleksandar Vučić

Xi Jinping

construction of train factory in Serbia