Page 12 - ARUBA TODAY

A12 WORLD NEWS
Tuesday 11 July 2017

China’s ambition, US retreat on show in Serbian factory town

By DUSAN STOJANOVIC hajlovic said. “This project
Associated Press cannot be realized without
SMEDEREVO, Serbia (AP) developed infrastructure in
— A giant Chinese red flag the countries where it pass-
flutters on a pole where an es.”
American flag used to fly She said that China has so
at a steel mill in this dusty far loaned some 5.5 billion
industrial Serbian town. The euros ($6.3 billion) in Ser-
company logos of U.S. Steel bia for the construction of
are faded on the huge bridges, highways and rail-
chimneys stacks, replaced roads that it plans to use
by those of a Chinese com- as transport routes for its
pany. goods into the heart of Eu-
When U.S. Steel sold its rope.
loss-making smelter in Ser- Hungarian Prime Minis-
bia to the government for ter Viktor Orban, who has
the symbolic sum of $1 in often been criticized by
2012, few here thought the Western European leaders
ailing communist-era fac- as being authoritarian, has
tory would ever be revived. often expressed his admi-
Then came along a state- ration for the economic
owned Chinese company. achievements of countries
Hebei Iron & Steel’s 46 mil- In this photo taken Thursday, June 29, 2017, workers unload a rail wagon loaded with coils of steel like China. He wants to
lion-euro ($52 million) pur- panels, in the city of Smederevo, 45 kilometers east of Belgrade, Serbia. When U.S. Steel sold its make Hungary the main
chase of the Steelworks loss-making smelter in Serbia to the government for $1 in 2012, few thought the communist-era hub for Chinese business
factory would ever be revived. Then came along a state-owned Chinese company. Hebei Iron &
Smederevo last year is part Steel’s 46 million-euro ($52 million) purchase of the steelworks last year is part of China’s broader and investments in Central
of China’s broader effort to effort to project influence and gain access to the European market as other traditional powers, and Eastern Europe.
project influence and gain particularly the U.S. under President Donald Trump, retreat from the world stage. “The old model for global-
an access point to the Eu- (AP Photo/Darko Vojinovic) ization has become obso-
ropean market as other tra- abroad also has a political nese companies in Europe an plant gets it some rare lete,” Orban said in May in
ditional powers, particularly background and connota- reached an all-time high of good headlines in which it Beijing while taking part in a
the U.S. under President tion,” said Mijat Lakicevic, $18 billion in 2014, with an- is credited with saving, not Belt and Road conference.
Donald Trump, retreat from a Serbian political and nual inflows averaging $10 destroying, jobs. “The engine room of the
the world stage. economy analyst. billion over the past four Chinese companies are global economy is no lon-
The dynamic was laid bare “China doesn’t really need years, according to the also starting to make in- ger in the West, but in the
at a world summit over the the Serbian plant that pro- Rhodium Group, a China roads into Eastern Europe- East.”
weekend, where Trump duces practically nothing investment monitor. an construction and engi- In Smederevo, the town
showed little interest in pro- compared to the steel pro- Beijing is encouraging its in- neering markets, including of some 100,000 people
moting free trade and was duction in China,” he said. dustries to diversify abroad plans to build a $2 billion where thousands make a
at odds with other coun- “So, I would describe this in hopes of reducing Chi- high-speed rail line from the living from the steel plant,
tries on issues like climate as placing a foot in the na’s reliance on exports Serbian capital, Belgrade, there was praise for China.
change. doorway in order to enter and its domestic market. to Budapest in neighboring Though salaries are about
China, meanwhile, was the market and the area That has also led to a string Hungary. 25 percent below what
keen to promote itself as where Russia and America of acquisitions in chemicals, And while the EU remains they were under the U.S.
a champion of commerce are already present.” tourism, insurance, banking the Western Balkans’ largest company — roughly 750
and openness — even The longer-term strategy for and other industries. trading partner, local gov- euros ($855) compared
though in practice it falls far China is to open markets Steel producers have an ernments have sometimes with 1,000 euros ($1,140),
short of being one. for its businesses as its home extra incentive because looked with favor to coun- mayor Jasna Avramovic
The Serbian plant is eco- economy slows. The most Beijing is trying to shrink its tries like China that are will- said it was important that
nomically irrelevant in the high-profile effort in this bloated state-dominated ing to invest large amounts the jobs had returned in the
short term to China, which direction is the ambitious industry at home. China’s without raising concerns first place.
abounds with steel produc- $900 billion Belt and Road production glut has led to about the region’s patchy “It’s been one year since
tion at home. But the deal project, often referred to a flood of low-priced ex- record on human rights or the Chinese came to our
saved 5,200 local jobs and as the New Silk Road — a ports, which has depressed media freedoms. town and a calmer atmo-
gained Serbia’s political fa- transport and trade corri- global markets and cost “Serbia has an important sphere is visible,” Avramov-
vor. dor running from China to jobs in the U.S. and Europe, role in China’s global Belt ic said.
“It seems to me that every- Germany, via Greek ports, raising political tensions. As and Road project and we “There is no more uncer-
thing China has been do- the Balkans and Central Eu- China negotiates the is- want to capitalize on all its tainty over what will hap-
ing in the past several years rope. sue with the U.S. and EU, potential,” Serbian Con- pen with the plant. The sal-
in the field of its investments Annual investment by Chi- its acquisition of the Serbi- struction Minister Zorana Mi- aries come on time.”q