In a significant diplomatic move, Chinese President Xi Jinping is currently embarking on a state visit to Serbia and Hungary, aimed at bolstering economic partnerships and strengthening ties with these two nations. The timing of his visit to Serbia coincides with the 25th anniversary of the 1999 bombing of the Chinese embassy in Belgrade by NATO forces.

During Xi's visit to Serbia, Chinese and Serbian flags were prominently displayed throughout Belgrade to mark the occasion. This state visit holds great significance as China has made substantial investments in Serbia in recent years. Chinese capital has been instrumental in establishing factories and mines, constructing roads, and funding the development of a railway line between Belgrade and Budapest. The implementation of this railway line will eventually replace the older socialist-era trains currently in operation.

The Chinese government's investments in Serbia have not been without controversy, as there have been accusations of pollution and environmental degradation associated with these ventures. Analysts have pointed out that in countries like Serbia, economic development often takes precedence over environmental concerns.

Furthermore, a Chinese tire factory in Serbia has faced allegations of human trafficking and the exploitation of Vietnamese and Indian workers. This has raised concerns about labor practices within Chinese-owned enterprises operating in the region.

Following his visit to Serbia, President Xi will proceed to Hungary, where the government has fostered close ties with both Beijing and Moscow. Hungary is the first member nation of the European Union to join China's Belt and Road development program. Widely regarded as Beijing's gateway to Europe, Hungary is of significant strategic importance to China.

China's interest in Hungary is driven by the need to expand its production facilities from China to Europe, thus operating within the confines of the European Union. This move may be connected to the rising protectionist sentiment within Europe. As a part of this strategy, construction is already underway for a battery factory for electric vehicles in Hungary, built by China-based Contemporary Amperex Technology Co. Limited (CATL).

However, the European Commission has expressed concerns about China's economic ambitions in Europe and has opened investigations into alleged Chinese subsidies for electric vehicles and solar panels, citing potential distortion of competition.

President Xi Jinping's visit to both Serbia and Hungary underscores China's intent to forge stronger economic ties with these nations and expand its influence in Europe. As China faces scrutiny and increasing protectionism from European countries, these visits provide an opportunity for dialogue and cooperation in resolving concerns related to environmental impact, labor practices, and fair competition.

Overall, this state visit is a significant step towards strengthening economic partnerships between China and Serbia, and cementing Hungary's role as a crucial partner in China's expansion into Europe.