Tragedy at the train station: Novi Sad becomes a test lab for Chinese influence

The collapse of an awning at the Novi Sad train station on November 1 led to the deaths of fourteen people. The accident and the subsequent developments highlight how much Serbia has become dependent on China. It also revealed what consequences the elites’ close ties with an external power had for Novi Sad, the ‘capital’ of Vojvodina, which has now become an experimental laboratory for Chinese influence in Serbia.

Regarding the political consequences of the tragedy,

the first move by Serbian officials was to try to keep the investment documents hidden from the public.

This makes it difficult to determine precisely which parts of the station were handed over to the Chinese main contractors for the renovation project, as well as the specific tasks assigned to these companies. “Details on the full scope of the renovation remain undisclosed, as the Ministry of Transport has not released project documentation to the press, following instructions from the Chinese consortium overseeing the construction” – writes Vojvodina-based news portal Szabad Magyar Szó.

However, some documents were released by the Serbian-language version of Radio Free Europe. These documents reveal that the awning above the main entrance of the Novi Sad station, constructed about sixty years ago, was not considered significant by Serbian experts and authorities during the planning stage of the renovation project. Publicly available records are also absent regarding the deadlines given to the Chinese contractors — China Railway International Corporation (CRIC) and China Communication Construction Company (CCCC) — for the station’s renovation.

The two Chinese companies and Goran Vesić, the minister responsible for construction, transport, and infrastructure, who resigned in tears from his position on Monday due to the tragedy, both claim that their commission for the station’s renovation did not include the awning. In connection with the accident, Prime Minister Miloš Vučević, who was in China at the time, also warned against any anti-China hysteria.

However, according to Slovenian public media, hundreds if not thousands of people passed under the awning in recent months, seeing that work was being done on this part of the building as well. Many had noticed and pointed out cracks spreading on the awning.

Zoran Dajić, an engineer, stated: “Minister Vesić is not telling the truth.”

According to Dajić, work was indeed being carried out on the awning, and he himself had warned of associated risks, but his opinion was ignored.

It has also been suggested that no structural engineer was involved in the renovation. While it is challenging to verify these claims, there are undoubtedly many unclear details surrounding the tragedy.

Is Vučić’s administration seeking accountability or scapegoats?

Meanwhile, Minister of Internal Affairs Ivica Dačić announced that twenty people would be questioned about the incident, and the renovation documents would be reviewed. Serbian President Aleksandar Vučić assured the public in a televised speech that “those responsible will face due punishment.”

According to the Novi Sad Prosecutor’s Office, a total of forty people have been questioned so far, including ministers, state secretaries, and company executives.

The day after the tragedy, a silent memorial was held in Novi Sad, with more than a thousand people attending. No speeches were made at this event, but on Sunday, a political protest took place – in Belgrade. This demonstration was far more troubling for Vučić’s ruling party, the Serbian Progressive Party (SNS). Protesters took to the streets with slogans like “blood is on your hands”, “corruption kills”, and

Arrest Vučić.

FILIP STEVANOVIC / ANADOLU / AFP

Radomir Lazović, representing the opposition Green-Left Front, demanded the establishment of a parliamentary investigative committee, although he already suggested an outcome in advance: in his view, the government is responsible for the disaster.

This also raises the issue of the lack of transparency surrounding Chinese-managed infrastructure investments in the region — and this matter affects Hungary as well, since the renovation of the Novi Sad station was part of the Budapest-Belgrade railway (BBR) megaproject. On March 20, 2022, on the occasion of the inauguration of the Belgrade-Novi Sad railway segment, Viktor Orbán posted a series of photos from the event, along with the slogan “Peace builds”.

Following the recent collapse of the station canopy in November, some Serbian media outlets also mentioned a majority Hungarian-owned but Serbian-led company that might have been involved in the Novi Sad station construction.

Chinese investments in the region: local interests, or those of Beijing?

The construction of the Budapest-Belgrade railway is one of the main logistical-commercial points in China’s global expansion strategy regarding Europe. From Beijing’s perspective, the importance of this route lies not in allowing Novi Sad residents to reach Belgrade in 30 minutes (as a Serbian government official praised the project to a Chinese newspaper last year), but in creating a fast, land-based connection from Greek ports — primarily Piraeus — towards Budapest for the sea freight containers pouring in from Asia.

This is one of the reasons why the route of the “Chinese” railway turned out so peculiar. In Serbia, it connects at least three major cities — Belgrade, as well as Novi Sad and Subotica in Vojvodina. However, in Hungary, it bypasses major cities like Kecskemét and Szeged on its way to Budapest.

In Hungary’s case, it’s even more evident than with the Vojvodina route that the objective is not to provide modern transport opportunities for the hundreds of thousands living along the railway, but rather to strengthen markets for Chinese goods transported in rail containers,

in alignment with Beijing’s global “One Belt, One Road” initiative.

From this perspective, it’s interesting to recall what Viktor Orbán said a few years ago. According to his website, the new model of globalisation takes shape in the “One Belt, One Road” initiative. “Capital in search of cheap labour no longer only moves from the West to the East; now the capital accumulated in the East has also begun to flow westward. Meanwhile, Asia’s most successful companies are rapidly increasing their market share in Europe, reducing logistics costs, and boosting productivity while seeking overseas manufacturing and development sites.” In this context, the Hungarian prime minister added: “With our concept of a labour-based society (…) we are an ideal pillar for the realisation of the <<One Belt, One Road>>.”

More current than Orbán’s statement from half a decade ago is an analysis by Politico, which suggests that the Chinese “One Belt, One Road” project has been significantly hindered over the past two years by the Russia-Ukraine war, which has complicated the railway transport of goods from Beijing to Europe. Therefore, the BBR’s value has significantly increased in the eyes of the Chinese leadership.

ZHANG XIAOFENG / XINHUA / AFP

And just before the Novi Sad incident, the Serbian president expressed hope that the international agreement for the construction of the Hungarian-Serbian-North Macedonian-Greek railway line would be signed before the BBR is completed. This would mean a connection through Budapest to the Czech Republic, Poland, and Austria, revealing China’s business interests extending beyond Budapest – as reported by Világgazdaság.

The project, with a projected return period of 979 years, could also be compared to another railway construction.

The fact that the line bypasses Kecskemét and Szeged brings to mind a similar Chinese-funded rail construction between Djibouti and Ethiopia.

In that case, a new rail track was built with Chinese funding alongside an existing but deteriorated old line, creating stations far away from cities — for instance, a new station was built 10 kilometres from the city of Dire Dawa. Thus, the project did not really benefit local transportation, while the railway company accumulated debt equivalent to one-third of Ethiopia’s annual budget. And we should rather not talk about returns: in 2019, the railway line generated $40 million in revenue, while its maintenance cost $70 million.

The case of Montenegro, likewise a neighbour of Serbia, is another example of the questionable nature of Chinese-funded investment projects. A 41-kilometre motorway segment was built

by a Chinese company
with Chinese workers
from Chinese loans
while significantly increasing the country’s national debt.

The highway generates an annual income of €9 million, while Montenegro is forced to pay China €40 million in loan repayments every six months.

Chinese Influence in Serbia

China’s economic influence in Serbia is immense.

In Hungary’s southern neighbour, the three largest export companies are all Chinese-owned,

with a total export value of €2.5 billion. The largest exporter in 2023 was Zijin Mining, followed by another member of the same group, Zijin Copper. The third place was taken by the HBIS group. Zijin mainly focuses on copper extraction, while HBIS (Hesteel: Hebei Iron and Steel Group) operates the steel plant in Smederevo. On another note, HBIS bought the steel plant in a way that “allowed” the Serbian state to retain responsibility for the plant’s debts – according to Radio Free Europe.

China has also signed important trade agreements with Belgrade: likely in exchange for allowing Chinese companies to expand in Serbia (for example, in Novi Sad), China has opened its markets to certain Serbian goods this year. Approximately 20,000 products are covered under the 2024 agreement, which Belgrade hopes will double its exports to China through free trade. However, according to BNE Intellinews, it is likely that China will benefit more from these free trade agreements, as current Serbian exports to China are dominated by the aforementioned Zijin mining companies.

According to Politico, the Chinese have previously undertaken several infrastructure projects in Serbia, including the construction of a bridge in Belgrade. However, these projects often led to substantial debt accumulation.

In recent years, Belgrade has accumulated obligations to Beijing amounting to $3.7 billion,

as Chinese investments frequently involve loan agreements. Currently, the Export-Import Bank of China is among Serbia’s largest creditors – reports Radio Free Europe.

Novi Sad: a stronghold of Chinese expansion

In this context, Novi Sad is more than a mere “railway stop”; it could just as well be called a testing ground for Chinese influence. Chinese companies and citizens have a notable presence in the capital of Vojvodina. For instance, as early as 2019,

it was first suggested in Novi Sad that Chinese police officers could patrol the city

– jointly with their Serbian counterparts.

Officially, the joint patrols in Novi Sad and Smederevo are, as per official communication, intended to support tourism, although that is hardly true: tourism is not a significant industry in either city. Instead, both cities have seen considerable Chinese investments, which likely explains the introduction of joint patrols.

WANG WEI / XINHUA / AFP

One element of China’s cultural influence is the establishment of the Confucius Institute in Novi Sad. This Chinese-supported institution, dedicated to language learning and cultural relations, operates within the university based in Vojvodina’s capital.

Meanwhile, a Chinese automotive company is also planning investments in Novi Sad. In late October, the city’s mayor, Milan Duric, visited China, where he signed an agreement with Shac (Shanghai Huizhong Automotive Manufacturing), a Shanghai-based truck and minibus manufacturer. The company plans to produce automotive bodies in Novi Sad.

Also in October, just before the railway station tragedy,

the Serbian Ministry of Infrastructure announced an agreement with yet another Chinese company, Shandong, for bridge construction projects in Novi Sad.

Under the €38 million contract, both pedestrians and cyclist will have new opportunities to cross the Danube. The work is scheduled to begin in April 2025 and will take 24 months to complete, according to initial plans announced by Goran Vesić, who is currently facing a less supportive public than before.

Thus, Novi Sad could open a gateway to Europe — an important asset for China, as is the Budapest-Belgrade railway line. “China views Hungary and Serbia as its two most important partners in Europe” – said Vedran Dzihic of the University of Vienna to Radio Free Europe. Dzihic noted that China sees these two countries as a gateway to gain more access to European markets and increase its influence across the continent.

The post Tragedy at the train station: Novi Sad becomes a test lab for Chinese influence first appeared on 24.hu.

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