China’s Balkan investments will expand into new areas
Subject BRI’s evolving nature. Significance China’s Belt and Road Initiative (BRI) is establishing ‘anchor’ investments and creating BRI clusters, particularly in transport connectivity and energy. Such anchor investments as Cosco’s in Piraeus or Belgrade’s Friendship Bridge serve as catalysts, attracting more Chinese companies and setting the stage for expansion. Impacts Continued concessional lending by Chinese policy banks for infrastructure projects in Balkan countries will increase the risk of debt traps. Mitigating the currency risks of such lending arrangements by switching to local currency lending will gain pace. A second wave of BRI-related activities is starting with Huawei, Tencent, Alibaba and WeChat making inroads in local economies.