"By banning Huawei in Serbia, European, not Chinese companies would be sanctioned": Brnabic clarifies dilemma

The Kopaonik Business Forum was held March 5-8

On the last day of the Kopaonik Business Forum, Prime Minister of Serbia Ana Brnabic addressed the gathering.

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She first congratulated this event on its 30th anniversary, and added that it was extremely important for her to be there.

"During the work of the Kopaonik Business Forum, a significant brand has been created. You position Serbia in the best way, and the government has a place here. This has become the business and geopolitical center of the region."

She added that, "we were one of the 10 countries in the world where employment did not drop during the pandemic" and pointed out that this happened thanks to "smart measures."

"We fought for every new direct foreign investment. Our best reference is precisely attracting new investments. That's how we had the best results last year, according to the data. As many as 95% of German investors said they were satisfied here. During the pandemic, for example, we had an unprecedented influx of Japanese investments, and high-tech ones at that."

The prime minister further stressed that it is particularly important to highlight development of capital infrastructure, especially roads and railways (and now also energy), and she highlighted digitization as another important point.

"Our way is towards Europe"

"In 2021, one in two jobs was created in the ICT sector. Imagine if all that wasn't there. In 2022, the surplus of our ICT sector was almost 2 billion euros, and it alone affected at least some 0.4 percent of GDP growth.

The reforms we are currently implementing are absolutely in the interest of our economy and citizens. If we can't agree on opening borders on our own, how are we going to do it within the EU? But what is important about the Open Balkan is that at the very moment when this initiative was launched, that was the only perspective for the citizens of Albania and North Macedonia who, once again, had received a big 'no' from the EU."

The prime minister stated that all the reforms that are being implemented are for the purpose of joining the EU.

"At this moment, 70% of total foreign direct investments, since 2001, came to Serbia from the EU. Also, 65% of our exports are to the EU, and this is the exact data from December 2022, which I presented at a conference a few days ago. Foreign companies in Serbia employ 281,636 people. So it is direct employment."

Serbia and the world

"Germany is absolutely our most important economic partner. But, on the other hand, we have a good positioning with China. Additionally, the US is our most reliable partner in the services sector, which is increasingly important to us. Our second partner is Great Britain, then Switzerland, then Germany. And there we have a big surplus.

Chinese companies operating in Serbia are, on the other hand, the biggest exporters.

"We are open to the whole world. That's the most responsible policy possible, even though it is the most difficult and challenging one. I believe that a free trade agreement with China will make it a lot easier. For example, our exports to China increased 153 times, reaching 1.2 billion euros in 2022.

The prime minister highlighted as the most important the free trade agreements that are in the works with China, the Emirates, and Egypt.

She also said that the focus will continue to be on artificial intelligence.

Huawei

The prime minister also touched on the Chinese company Huawei, saying that Western Europe has a much larger number of Chinese investments than Serbia and the entire Western Balkans.

"Some of the largest European companies have Chinese companies as their largest individual shareholders. When you look at the dilemma we have around the 5G network and whether Huawei is treated as a safe partner, and where the pressure on Serbia is... You go, 'well, but it would be irresponsible of us to give it up because of geopolitics'. And, what is particularly interesting, if you look at the telecommunications companies in Serbia, and our preparations for the bidding for the 5G network, you can see that various European companies that do business here - do business with Huawei," Brnabic stressed and added:

"So, in order for you to ban Huawei in Serbia, you would in fact have to introduce restrictions against European companies, not the Chinese ones."

The prime minister further pointed out that biotechnology and the ICT sector are one of the main drivers of our economy, but - they cannot go outside green energy. "It is something that must accompany our development, not coal energy."

"Those who do not believe in climate change should understand that there is the concept of growth and development. This enables us to attract a completely new direct foreign investments."

Public sector reform

"There are various hurdles at the moment, because people from various companies are afraid of changes. The Government of Serbia has to deal with it, there is no turning back."

She said EPS and Srbijagas are the first two companies she is working with on this.

"We have to be competitive. After this, railway companies follow, especially those in cargo transport. Without a market way of doing business, it's a bottomless pit. We started with EPS and Srbijagas and we will continue," the prime minister of Serbia said at the end of her address at the Kopaonik Business Forum.

(Telegraf Biznis)