Serbia recorded its largest goods-trade deficit with China during the first quarter of 2026, underscoring the growing role of Chinese equipment, machinery and industrial products in the country’s economic development and manufacturing supply chains.
The trade deficit with China reached approximately €1.0 billion in Q1 2026, significantly exceeding Serbia’s trade gaps with other major partners. The figure reflects substantial imports of machinery, electronics, industrial equipment, consumer products and manufacturing inputs.
The trade relationship is becoming increasingly important as Chinese companies expand their presence across sectors including infrastructure, manufacturing, mining, automotive production and renewable energy.
China deficit exceeds other major bilateral trade gaps
Among Serbia’s largest trade deficits in the first quarter, China ranked well ahead of other countries by value.
The country recorded a trade deficit of €176.2 million with Turkey, €161.3 million with Russia, €150.2 million with Poland, and €131.6 million with Romania.
The scale of the Chinese trade imbalance places it in a separate category within Serbia’s external trade structure, reflecting the volume of imported capital goods, components and industrial products entering the domestic market. At the same time, Chinese contractors, equipment suppliers, automotive manufacturers, mining investors and renewable-energy equipment providers have become increasingly active across Serbia and the wider region.
Equipment imports linked to industrial and infrastructure development
A substantial portion of imports from China is associated with investments in infrastructure, energy projects, mining operations, transport systems, industrial automation and manufacturing expansion. These imports include equipment and technologies that support productive capacity and capital investment across multiple sectors of the economy.
The trade data highlight the role of imported machinery and industrial inputs in Serbia’s ongoing modernization of production facilities, transport networks and energy infrastructure.
Annual deficit projected above €3.5 billion
Current projections indicate that Serbia’s trade deficit with China could remain above €3.5 billion on an annualized basis during 2026. The deficit could approach €4 billion if imports of equipment continue to increase across energy, infrastructure and manufacturing projects.
The trade balance reflects continued demand for imported machinery, technology systems and industrial components required for investment activity and industrial development.
Local participation expands focus of investment planning
The growth of imports linked to industrial projects has increased attention on local participation in associated supply chains and service activities. Areas connected to imported equipment include service and maintenance operations, spare-parts networks, engineering, procurement and construction supervision, domestic subcontracting, assembly activities, testing facilities and engineering services.
China-related trade exposure varies across industries. In renewable energy, imported equipment contributes to project capital expenditure structures and technology deployment. In manufacturing, imported machinery and components support production activities. In infrastructure development, Chinese equipment and contractors play a role in project execution and delivery. The trade relationship continues to be shaped by imports associated with Serbia’s industrial, infrastructure and energy investment programs.
