European Commissioner Johannes Hahn has warned that China is gaining increasing influence in the Balkan through “a combination of capitalism and political dictatorship” which could appeal to some of the leaders in the region, the Politico web site reported on Friday.

Politico said that the West has focused on Russia’s role and influence but that Hahn, the commissioner for European Neighbourhood Policy and Enlargement Negotiations, believes there is more reason to “be uneasy about China which has made a series of significant investments in infrastructure projects”.

Hahn cited the example of highway being built and financed by China in Montenegro. “This is a kind of pattern, or let’s say business model, by the Chinese to offer attractive or more or less attractive loans and if you cannot serve them, it’s turned into capital,” the commissioner said replying to a question about Beijing creating Trojan horses in the region by using finances to gain political influence.

“I think we should be aware about the strategic concept by China and react in an adequate manner. I think this will be one of the great challenges of Europe,” said Hahn.

The commissioner said that the countries of the Western Balkans have the right to become members of the European Union but warned that the Union “faces a choice between exporting stability to the region or having instability imported into the bloc”.

According to Hahn, EU enlargement to the Western Balkans is a historic mission. “Everything started in ’89 with the fall of the Iron Curtain. The huge enlargement in 2004 was … a first great consequence. And I would say all this is only concluded once the six countries are members of the Union,” he said.